Lumine Group Inc (LMN) AI Stock Analysis

• Market Cap: C$12.19B
• Dividend Yield: N/A
• Average Volume (3M): 71.93K
• Price to Earnings (P/E): 131.4
• Beta (1Y): 0.91
• Revenue Growth: 35.90%
• EPS Growth: 97.74%
• Country: CA
• Employees: 2,300
• Sector: Real Estate
• Sector Strength: 69
• Industry: Software - Application
• EPS (TTM): 0.11
• Shares Outstanding: 256,620,400
• 10 Day Avg. Volume: 82,992
• 30 Day Avg. Volume: 71,934
• PEG Ratio: 0.87
• Price to Book (P/B): 10.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 73.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$54.00
• Price Target Upside: 13.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• 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 Business Overview & Revenue Model

Company Description

Lumine Group Inc. offers communications and media software worldwide. The company was founded in 2022 and is headquartered in Mississauga, Canada.

How the Company Makes Money

Lumine 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

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

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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
705.96M	668.37M	499.67M	255.75M	228.36M	166.37M
	Gross Profit
347.80M	324.22M	233.69M	121.43M	108.26M	153.76M
	EBIT
81.74M	0.00	73.39M	34.52M	37.99M	25.80M
	EBITDA
231.82M	-102.06M	-2.72B	73.60M	68.95M	47.17M
	Net Income Common Stockholders
66.21M	-258.91M	-2.83B	27.40M	27.47M	20.31M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
67.08M	210.98M	146.51M	67.08M	27.11M	35.14M
	Total Assets
392.83M	1.29B	1.15B	392.83M	328.41M	266.96M
	Total Debt
25.90M	286.50M	165.99M	25.90M	4.62M	2.45M
	Net Debt
-41.18M	75.52M	19.48M	-41.18M	-22.50M	-32.69M
	Total Liabilities
239.05M	609.73M	4.99B	239.05M	155.26M	119.85M
	Stockholders Equity
153.78M	678.72M	-3.84B	153.78M	173.15M	147.11M
Cash Flow		Free Cash Flow
118.31M	113.22M	107.09M	33.84M	85.33M	58.85M
	Operating Cash Flow
121.23M	116.15M	108.23M	34.63M	86.03M	59.47M
	Investing Cash Flow
-143.61M	-148.69M	-318.38M	-115.34M	-14.18M	-10.74M
	Financing Cash Flow
12.57M	100.04M	287.12M	120.80M	-79.64M	-32.54M

Lumine Group Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LMN	70 Outperform	C$12.19B	131.36	9.89%	―	35.90%	97.74%
Sector *	60 Neutral	$2.76B	10.59	0.51%	8507.90%	5.51%	-19.44%
OTEX		$7.24B	11.42	15.87%	3.70%	―	―
DSGX		$9.98B	71.27	10.92%	―	―	―
KXS	73 Outperform	C$5.56B	399.78	2.32%	―	15.14%	-31.45%
EGHSF		$1.06B	17.35	14.76%	4.00%	―	―
LSPD	63 Neutral	C$1.99B	―	-33.64%	―	23.95%	39.68%

Lumine Group Inc Corporate Events

Lumine Group Inc. Reports Strong Q1 2025 Financial Performance

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.

Lumine Group Inc. Announces Virtual Annual General Meeting

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.

Lumine Group CEO David Nyland Returns to Leadership Role

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.