Latest news with #Luceco
Yahoo
21 hours ago
- Business
- Yahoo
Luceco's (LON:LUCE) investors will be pleased with their decent 42% return over the last three years
Explore Luceco's Fair Values from the Community and select yours Luceco plc (LON:LUCE) shareholders have seen the share price descend 13% over the month. But at least the stock is up over the last three years. However, it's unlikely many shareholders are elated with the share price gain of 27% over that time, given the rising market. Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During the three years of share price growth, Luceco actually saw its earnings per share (EPS) drop 18% per year. So we doubt that the market is looking to EPS for its main judge of the company's value. Therefore, we think it's worth considering other metrics as well. Do you think that shareholders are buying for the 0.6% per annum revenue growth trend? We don't. While we don't have an obvious theory to explain the share price rise, a closer look at the data might be enlightening. You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image). We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. So it makes a lot of sense to check out what analysts think Luceco will earn in the future (free profit forecasts). What About Dividends? It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Luceco, it has a TSR of 42% for the last 3 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return. A Different Perspective While the broader market gained around 22% in the last year, Luceco shareholders lost 11% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 0.7% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we've identified 2 warning signs for Luceco that you should be aware of. Luceco is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-07-2025
- Business
- Yahoo
What Is Luceco plc's (LON:LUCE) Share Price Doing?
While Luceco plc (LON:LUCE) might not have the largest market cap around , it led the LSE gainers with a relatively large price hike in the past couple of weeks. While good news for shareholders, the company has traded much higher in the past year. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. But what if there is still an opportunity to buy? Let's examine Luceco's valuation and outlook in more detail to determine if there's still a bargain opportunity. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Is Luceco Still Cheap? The share price seems sensible at the moment according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. In this instance, we've used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock's cash flows. We find that Luceco's ratio of 14.83x is trading slightly below its industry peers' ratio of 15.99x, which means if you buy Luceco today, you'd be paying a reasonable price for it. And if you believe that Luceco should be trading at this level in the long run, then there's not much of an upside to gain over and above other industry peers. So, is there another chance to buy low in the future? Given that Luceco's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility. Check out our latest analysis for Luceco What does the future of Luceco look like? Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 51% over the next couple of years, the future seems bright for Luceco. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. What This Means For You Are you a shareholder? It seems like the market has already priced in LUCE's positive outlook, with shares trading around industry price multiples. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at LUCE? Will you have enough confidence to invest in the company should the price drop below the industry PE ratio? Are you a potential investor? If you've been keeping an eye on LUCE, now may not be the most advantageous time to buy, given it is trading around industry price multiples. However, the optimistic forecast is encouraging for LUCE, which means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example, we've discovered 2 warning signs that you should run your eye over to get a better picture of Luceco. If you are no longer interested in Luceco, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Glasgow Times
15-06-2025
- Business
- Glasgow Times
Toolstation to host spring and summer roadshow in Glasgow
Toolstation's 2025 Spring and Summer Supplier Roadshow will take place at the retailer's Glasgow Parkhead branch on Tuesday, June 17. It will feature leading trade brands including DeWalt, Bosch, Tourpet, CT1, Forgefix, and Luceco. Geoff Cook, trade business partner at Toolstation, said: "With an already busy schedule in place, it can be challenging for our customers to stay up to date on the latest developments and trends in the industry. "By gathering leading trade brands in one place and bringing their expertise across the country, we hope to provide our customers with new information, top tips, and advice required to get the job done right this spring and summer. "We look forward to welcoming local trade communities into our stores throughout this period, including those at Glasgow." Read more: 'Tremendous honour': Glasgow firm celebrates double win at awards ceremony The roadshow provides tradespeople a chance to discover new and upcoming products, watch live demonstrations, try products firsthand, and receive advice from supplier experts. Brands will be giving away free goody bags, offering exclusive on-the-day deals, and running competitions. The retailer has also partnered with Fix Radio for the event, which will be offering free Greggs breakfasts to attendees along with additional giveaways, competitions, and games. Those in attendance will also receive a 10% in-store discount on all purchases of £75 or more during the event. Additional exhibitors at the Glasgow event include delivery app TradeKart and technology company SumUp. Toolstation's partnership with TradeKart allows customers to order from a selection of more than 10,000 products for delivery in as little as one hour. Read more: Glasgow business founder shortlisted for 'Grammys of entrepreneurship' SumUp card readers will also be promoted, offering businesses and tradespeople a fast, mobile payment solution. Throughout the roadshow, people will also have a chance to win a prize draw for a tool hamper worth more than £200. The hamper includes products from Stanley, Dulux, Luceco, Bosch, and Milwaukee, and more. To enter, customers simply need to donate to Toolstation's charity partner Macmillan Cancer Support in-store. Toolstation is set to host the roadshow at 60 stores across the UK between April and September, with at least five of 15 participating suppliers will be present at each location.
Yahoo
17-05-2025
- Business
- Yahoo
An Intrinsic Calculation For Luceco plc (LON:LUCE) Suggests It's 49% Undervalued
The projected fair value for Luceco is UK£2.97 based on 2 Stage Free Cash Flow to Equity Luceco's UK£1.51 share price signals that it might be 49% undervalued Our fair value estimate is 50% higher than Luceco's analyst price target of UK£1.98 Today we will run through one way of estimating the intrinsic value of Luceco plc (LON:LUCE) by taking the expected future cash flows and discounting them to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. It may sound complicated, but actually it is quite simple! We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. Our free stock report includes 2 warning signs investors should be aware of before investing in Luceco. Read for free now. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (£, Millions) UK£14.1m UK£15.2m UK£21.4m UK£26.2m UK£30.5m UK£34.2m UK£37.4m UK£40.1m UK£42.4m UK£44.3m Growth Rate Estimate Source Analyst x2 Analyst x2 Analyst x2 Est @ 22.58% Est @ 16.50% Est @ 12.24% Est @ 9.26% Est @ 7.17% Est @ 5.71% Est @ 4.69% Present Value (£, Millions) Discounted @ 9.2% UK£12.9 UK£12.7 UK£16.4 UK£18.4 UK£19.7 UK£20.2 UK£20.2 UK£19.9 UK£19.2 UK£18.4 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = UK£178m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.3%. We discount the terminal cash flows to today's value at a cost of equity of 9.2%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = UK£44m× (1 + 2.3%) ÷ (9.2%– 2.3%) = UK£660m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= UK£660m÷ ( 1 + 9.2%)10= UK£275m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is UK£453m. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of UK£1.5, the company appears quite good value at a 49% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Luceco as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.2%, which is based on a levered beta of 1.339. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for Luceco Strength Debt is well covered by earnings and cashflows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Electrical market. Opportunity Annual revenue is forecast to grow faster than the British market. Trading below our estimate of fair value by more than 20%. Significant insider buying over the past 3 months. Threat Dividends are not covered by cash flow. Annual earnings are forecast to grow slower than the British market. Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. Can we work out why the company is trading at a discount to intrinsic value? For Luceco, there are three additional aspects you should explore: Risks: We feel that you should assess the 2 warning signs for Luceco we've flagged before making an investment in the company. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for LUCE's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the LSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-02-2025
- Business
- Yahoo
At UK£1.57, Is Luceco plc (LON:LUCE) Worth Looking At Closely?
While Luceco plc (LON:LUCE) might not have the largest market cap around , it received a lot of attention from a substantial price increase on the LSE over the last few months. While good news for shareholders, the company has traded much higher in the past year. As a stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let's take a look at Luceco's outlook and value based on the most recent financial data to see if the opportunity still exists. See our latest analysis for Luceco According to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average, the stock price seems to be justfied. In this instance, we've used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock's cash flows. We find that Luceco's ratio of 13.25x is trading slightly below its industry peers' ratio of 14.88x, which means if you buy Luceco today, you'd be paying a decent price for it. And if you believe that Luceco should be trading at this level in the long run, then there's not much of an upside to gain over and above other industry peers. So, is there another chance to buy low in the future? Given that Luceco's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility. Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. With profit expected to grow by a double-digit 15% over the next couple of years, the outlook is positive for Luceco. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? LUCE's optimistic future growth appears to have been factored into the current share price, with shares trading around industry price multiples. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at LUCE? Will you have enough conviction to buy should the price fluctuate below the industry PE ratio? Are you a potential investor? If you've been keeping an eye on LUCE, now may not be the most advantageous time to buy, given it is trading around industry price multiples. However, the optimistic forecast is encouraging for LUCE, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. At Simply Wall St, we found 2 warning signs for Luceco and we think they deserve your attention. If you are no longer interested in Luceco, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
