Lancashire Holdings Ltd. (LRE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Admiral Group Plc

Sabre Insurance Group Plc

Lancashire Holdings Ltd.

Direct Line Insurance Group Plc

Saga Plc

CPP Group Plc

Why is Lancashire Holdings Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -2.85% and Operating profit at 13.87%

The company has declared Positive results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Highest at GBP 866.29 MM
INTEREST COVERAGE RATIO(Q) Highest at 28.07
NET SALES(Q) Highest at GBP 779.67 MM

With ROE of 2.32%, it has a attractive valuation with a 1.39 Price to Book Value

Over the past year, while the stock has generated a return of 0.00%, its profits have risen by 149.2% ; the PEG ratio of the company is 0.4

Underperformed the market in the last 1 year

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Lancashire Holdings Ltd. should be less than 10%
Overall Portfolio exposure to Insurance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Insurance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Lancashire Holdings Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Lancashire Holdings Ltd.

-1.4%

-1.41

26.53%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.85%

EBIT Growth (5y)

13.87%

EBIT to Interest (avg)

0.09

Debt to EBITDA (avg)

41.62

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

0.23

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

16.32%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

0.28%

ROE (avg)

13.80%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.39

EV to EBIT

EV to EBITDA

EV to Capital Employed

1.48

EV to Sales

3.99

PEG Ratio

0.40

Dividend Yield

22.14%

ROCE (Latest)

ROE (Latest)

2.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 866.29 MM

INTEREST COVERAGE RATIO(Q)

Highest at 28.07

NET SALES(Q)

Highest at GBP 779.67 MM

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

-11What is not working for the Company

OPERATING PROFIT(Q)

Lowest at GBP 104.34 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.38 %

PRE-TAX PROFIT(Q)

Lowest at GBP 90.08 MM

NET PROFIT(Q)

Lowest at GBP 84.21 MM

EPS(Q)

Lowest at GBP 0.34

Here's what is working for Lancashire Holdings Ltd.

Interest Coverage Ratio

Highest at 28.07 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at GBP 866.29 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Net Sales

Highest at GBP 779.67 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (GBP MM)

Raw Material Cost

Fallen by 0% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at GBP 3.7 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for Lancashire Holdings Ltd.

Pre-Tax Profit

At GBP 90.08 MM has Fallen at -44.72%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

At GBP 84.21 MM has Fallen at -46.96%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Operating Profit

Lowest at GBP 104.34 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (GBP MM)

Operating Profit Margin

Lowest at 13.38 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at GBP 90.08 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Net Profit

Lowest at GBP 84.21 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP 0.34

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)