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Lumine Group Inc (TSE:LMN)
:LMN
Canadian Market

Lumine Group Inc (LMN) AI Stock Analysis

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Lumine Group Inc

(LMN)

Rating:70Outperform
Price Target:
Lumine Group Inc. shows strong revenue growth and improving profitability, bolstered by strategic acquisitions. The balance sheet is stable, and cash flow is strong, supporting liquidity and financial stability. However, historical profitability volatility and negative valuation metrics due to negative earnings are key risks. Technical indicators suggest short-term stability but potential long-term weakness. The company needs to focus on enhancing profitability to improve stock attractiveness.

Lumine Group Inc (LMN) vs. iShares MSCI Canada ETF (EWC)

Lumine Group Inc Business Overview & Revenue Model

Company DescriptionLumine Group Inc. offers communications and media software worldwide. The company was founded in 2022 and is headquartered in Mississauga, Canada.
How the Company Makes MoneyLumine Group Inc generates revenue through a diverse portfolio of products and services. The company primarily earns money from the sale and licensing of its enterprise software solutions, which are designed to streamline business processes for client organizations. Subscription fees for its cloud-based services form a significant part of the revenue, providing clients with scalable and flexible IT infrastructure solutions. Additionally, Lumine Group Inc offers consulting and professional services, assisting clients in implementing and optimizing their technology solutions. The company may also engage in strategic partnerships and collaborations to expand its market reach and enhance its product offerings, further contributing to its revenue streams.

Lumine Group Inc Financial Statement Overview

Summary
Lumine Group Inc. demonstrates substantial growth and improving profitability, with strong cash generation and stable balance sheet metrics. However, historical volatility in profitability and the balance sheet indicates potential risks that need ongoing management. The financial health shows resilience, but continued focus on operational efficiency and capital management will be crucial for sustaining growth.
Income Statement
78
Positive
Lumine Group Inc. shows strong revenue growth, with a significant increase from $166.4M in 2020 to $705.9M in TTM (Trailing-Twelve-Months) 2025. The gross profit margin remains robust at approximately 49.2% in TTM 2025, indicating efficient cost management. Net profit margin improved to 9.4% in TTM 2025 from a negative position in previous years, reflecting a turnaround in profitability. However, the volatility in EBIT and EBITDA margins, especially the negative EBITDA in recent years, suggests the company is still navigating operational challenges.
Balance Sheet
72
Positive
The balance sheet is stable, with an equity ratio of 53.1% in TTM 2025, indicating a strong capital base. The debt-to-equity ratio is manageable at 0.41, reflecting prudent leverage levels. Return on equity has improved significantly, turning positive in TTM 2025, indicating effective use of shareholder capital. However, the history of negative equity and liabilities exceeding assets in prior years presents a potential risk if financial conditions deteriorate.
Cash Flow
75
Positive
Cash flow metrics are strong, with consistent positive operating cash flow and free cash flow over the periods, supporting the company's liquidity. The operating cash flow to net income ratio is favorable at 1.83 in TTM 2025, suggesting strong cash generation relative to net income. Free cash flow growth has been steady, providing the company with flexibility for investments and debt servicing. However, fluctuations in investing cash flows indicate variability in capital expenditures and investment activities.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
705.96M668.37M499.67M255.75M228.36M166.37M
Gross Profit
347.80M324.22M233.69M121.43M108.26M153.76M
EBIT
81.74M0.0073.39M34.52M37.99M25.80M
EBITDA
231.82M-102.06M-2.72B73.60M68.95M47.17M
Net Income Common Stockholders
66.21M-258.91M-2.83B27.40M27.47M20.31M
Balance SheetCash, Cash Equivalents and Short-Term Investments
67.08M210.98M146.51M67.08M27.11M35.14M
Total Assets
392.83M1.29B1.15B392.83M328.41M266.96M
Total Debt
25.90M286.50M165.99M25.90M4.62M2.45M
Net Debt
-41.18M75.52M19.48M-41.18M-22.50M-32.69M
Total Liabilities
239.05M609.73M4.99B239.05M155.26M119.85M
Stockholders Equity
153.78M678.72M-3.84B153.78M173.15M147.11M
Cash FlowFree Cash Flow
118.31M113.22M107.09M33.84M85.33M58.85M
Operating Cash Flow
121.23M116.15M108.23M34.63M86.03M59.47M
Investing Cash Flow
-143.61M-148.69M-318.38M-115.34M-14.18M-10.74M
Financing Cash Flow
12.57M100.04M287.12M120.80M-79.64M-32.54M

Lumine Group Inc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price47.50
Price Trends
50DMA
43.19
Positive
100DMA
40.99
Positive
200DMA
38.85
Positive
Market Momentum
MACD
1.30
Positive
RSI
57.94
Neutral
STOCH
38.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LMN, the sentiment is Positive. The current price of 47.5 is above the 20-day moving average (MA) of 46.63, above the 50-day MA of 43.19, and above the 200-day MA of 38.85, indicating a bullish trend. The MACD of 1.30 indicates Positive momentum. The RSI at 57.94 is Neutral, neither overbought nor oversold. The STOCH value of 38.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LMN.

Lumine Group Inc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSLMN
70
Outperform
C$12.19B131.369.89%35.90%97.74%
60
Neutral
$2.76B10.590.51%8507.90%5.51%-19.44%
$7.24B11.4215.87%3.70%
$9.98B71.2710.92%
TSKXS
73
Outperform
C$5.56B399.782.32%15.14%-31.45%
$1.06B17.3514.76%4.00%
63
Neutral
C$1.99B-33.64%23.95%39.68%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:LMN
Lumine Group Inc
47.50
9.27
24.25%
OTEX
Open Text
28.44
-0.06
-0.21%
DSGX
The Descartes Systems Group
116.93
19.33
19.81%
TSE:KXS
Kinaxis Inc
196.81
46.04
30.54%
EGHSF
Enghouse Systems
19.35
-0.65
-3.25%
TSE:LSPD
Lightspeed POS Inc
15.04
-5.95
-28.35%

Lumine Group Inc Corporate Events

Business Operations and StrategyFinancial Disclosures
Lumine Group Inc. Reports Strong Q1 2025 Financial Performance
Positive
May 1, 2025

Lumine Group Inc., a company listed on the TSX Venture Exchange, reported a significant financial turnaround for the first quarter of 2025. The company achieved a 27% increase in revenue to $178.7 million, primarily driven by acquisitions, despite a slight decline in organic growth. Operating income rose by 34% to $59.5 million, and net income reached $20.8 million, a stark improvement from a net loss of $304.3 million in the same quarter of the previous year. This financial performance reflects the positive impact of strategic acquisitions and the elimination of expenses related to preferred and special securities, enhancing the company’s cash flow and financial stability.

Spark’s Take on TSE:LMN Stock

According to Spark, TipRanks’ AI Analyst, TSE:LMN is a Neutral.

Lumine Group Inc’s overall stock score reflects its strong revenue growth juxtaposed against significant profitability challenges and leverage concerns. Technical indicators show stability in the short term but potential weakness in the long term. Valuation metrics are poor due to negative earnings and the lack of a dividend yield, which further reduces the stock’s attractiveness. To improve, the company must focus on enhancing profitability and reducing leverage.

To see Spark’s full report on TSE:LMN stock, click here.

Shareholder Meetings
Lumine Group Inc. Announces Virtual Annual General Meeting
Neutral
Apr 9, 2025

Lumine Group Inc., along with Constellation Software Inc. and Topicus.com Inc., announced their annual general meetings of shareholders will be held virtually on May 13, 2025. The meetings will include a joint question and answer session with senior management, offering shareholders an opportunity to engage directly with company leaders. This approach highlights the companies’ commitment to maintaining transparent communication with stakeholders, potentially impacting their industry positioning by fostering trust and engagement.

Spark’s Take on TSE:LMN Stock

According to Spark, TipRanks’ AI Analyst, TSE:LMN is a Neutral.

Lumine Group Inc’s overall stock score reflects its strong revenue growth juxtaposed against significant profitability challenges and leverage concerns. Technical indicators show stability in the short term but potential weakness in the long term. Valuation metrics are poor due to negative earnings and the lack of a dividend yield, which further reduces the stock’s attractiveness. To improve, the company must focus on enhancing profitability and reducing leverage.

To see Spark’s full report on TSE:LMN stock, click here.

Executive/Board Changes
Lumine Group CEO David Nyland Returns to Leadership Role
Neutral
Feb 14, 2025

Lumine Group Inc. announced the return of David Nyland as Chief Executive Officer following a temporary leave of absence. This leadership transition is expected to provide stability and continuity for the company as Tony Garcia, who served as interim CEO, will continue in his role as Group President, ensuring seamless operations and sustained growth.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.