Lancor Holdings Faces Evaluation Downgrade Amid Financial Challenges and High Debt Levels

Lancor Holdings, a microcap player in the realty sector, has recently undergone an adjustment in evaluation, reflecting a shift in its quality grade from average to below average. This revision is influenced by several underlying financial metrics that highlight the company's current standing.
Over the past five years, Lancor Holdings has experienced a sales growth rate of 37.92% and an EBIT growth rate of 19.57%. However, the company's ability to manage debt is a concern, as indicated by a Debt to EBITDA ratio averaging 11.23, suggesting challenges in servicing its obligations. The net debt to equity ratio stands at 0.86, which further emphasizes the company's leverage position.

In terms of profitability, the average Return on Capital Employed (ROCE) is recorded at 6.15%, while the Return on Equity (ROE) is notably lower at 1.48%. The tax ratio is relatively high at 54.17%, and the dividend payout ratio is at 18.01%. Additionally, institutional holding in the company is modest at 2.20%, indicating limited institutional interest.

Overall, the recent evaluation adjustment for Lancor Holdings reflects a complex interplay of financial metrics that paint a picture of the company's current market position and operational challenges.

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