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Luceco

BST:2LC
Snowflake Description

Undervalued with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
2LC
BST
£110M
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

Luceco plc manufactures and distributes various light emitting diode (LED) lighting products and wiring accessories in the United Kingdom, Europe, the Middle East, the Americas, the Asia Pacific, and Africa. The last earnings update was 206 days ago. More info.


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  • Luceco has significant price volatility in the past 3 months.
2LC Share Price and Events
7 Day Returns
5.5%
BST:2LC
0.4%
DE Electrical
-2.7%
DE Market
1 Year Returns
-1.8%
BST:2LC
-11.6%
DE Electrical
-20.4%
DE Market
2LC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Luceco (2LC) 5.5% -34.1% - -1.8% -66.9% -
DE Electrical 0.4% -24.3% -37.1% -11.6% -42.1% -43%
DE Market -2.7% -18.4% -26.7% -20.4% -25.9% -30.4%
1 Year Return vs Industry and Market
  • 2LC outperformed the Electrical industry which returned -11.6% over the past year.
  • 2LC outperformed the Market in Germany which returned -20.4% over the past year.
Price Volatility
2LC
Industry
5yr Volatility vs Market

2LC Value

 Is Luceco undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Luceco to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Luceco.

BST:2LC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BST:2LC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.1%
Electrical Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.115 (1 + (1- 19%) (37.67%))
1.305
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.31
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.305 * 6.07%)
7.53%

Discounted Cash Flow Calculation for BST:2LC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Luceco is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

BST:2LC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.53%)
2020 13.85 Analyst x2 12.88
2021 18.23 Analyst x2 15.77
2022 20.82 Est @ 14.19% 16.74
2023 22.86 Est @ 9.81% 17.10
2024 24.41 Est @ 6.75% 16.97
2025 25.53 Est @ 4.61% 16.51
2026 26.32 Est @ 3.11% 15.83
2027 26.87 Est @ 2.06% 15.03
2028 27.22 Est @ 1.32% 14.16
2029 27.44 Est @ 0.81% 13.27
Present value of next 10 years cash flows £154.00
BST:2LC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £27.44 × (1 + -0.39%) ÷ (7.53% – -0.39%)
£345.00
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £345.00 ÷ (1 + 7.53%)10
£166.87
BST:2LC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £154.00 + £166.87
£320.87
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £320.87 / 155.30
£2.07
BST:2LC Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in BST:2LC represents 1.13221x of LSE:LUCE
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.13221x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 2.07 x 1.13221
€2.34
Value per share (EUR) From above. €2.34
Current discount Discount to share price of €0.81
= -1 x (€0.81 - €2.34) / €2.34
65.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Luceco is available for.
Intrinsic value
>50%
Share price is €0.81 vs Future cash flow value of €2.34
Current Discount Checks
For Luceco to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Luceco's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Luceco's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Luceco's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Luceco's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BST:2LC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in GBP £0.06
LSE:LUCE Share Price ** LSE (2020-04-02) in GBP £0.71
Germany Electrical Industry PE Ratio Median Figure of 7 Publicly-Listed Electrical Companies 20.09x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.15x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Luceco.

BST:2LC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:LUCE Share Price ÷ EPS (both in GBP)

= 0.71 ÷ 0.06

11.31x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Luceco is good value based on earnings compared to the DE Electrical industry average.
  • Luceco is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Luceco's expected growth come at a high price?
Raw Data
BST:2LC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.31x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
13.2%per year
Germany Electrical Industry PEG Ratio Median Figure of 6 Publicly-Listed Electrical Companies 0.68x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.17x

*Line of best fit is calculated by linear regression .

BST:2LC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.31x ÷ 13.2%

0.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Luceco is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Luceco's assets?
Raw Data
BST:2LC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in GBP £0.26
LSE:LUCE Share Price * LSE (2020-04-02) in GBP £0.71
Germany Electrical Industry PB Ratio Median Figure of 14 Publicly-Listed Electrical Companies 1.8x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
BST:2LC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:LUCE Share Price ÷ Book Value per Share (both in GBP)

= 0.71 ÷ 0.26

2.69x

* Primary Listing of Luceco.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Luceco is overvalued based on assets compared to the DE Electrical industry average.
X
Value checks
We assess Luceco's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electrical industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electrical industry average (and greater than 0)? (1 check)
  5. Luceco has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

2LC Future Performance

 How is Luceco expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Luceco expected to grow at an attractive rate?
  • Luceco's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Luceco's earnings growth is positive but not above the Germany market average.
  • Luceco's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
BST:2LC Future Growth Rates Data Sources
Data Point Source Value (per year)
BST:2LC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 13.2%
BST:2LC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 3.3%
Germany Electrical Industry Earnings Growth Rate Market Cap Weighted Average 69%
Germany Electrical Industry Revenue Growth Rate Market Cap Weighted Average 11.7%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.3%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BST:2LC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (9 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BST:2LC Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 185 22 15 3
2020-12-31 178 20 14 3
2020-04-02
2019-12-31 172 10 13 3
BST:2LC Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-06-30 172 17 10
2019-03-31 168 15 6
2018-12-31 164 12 2
2018-09-30 166 10 0
2018-06-30 167 7 -1
2018-03-31 168 12 5
2017-12-31 168 17 10
2017-09-30 158 12 10
2017-06-30 149 7 9
2017-03-31 141 5 8
2016-12-31 134 3 7
2016-09-30 124 8 7

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Luceco's earnings are expected to grow by 13.2% yearly, however this is not considered high growth (20% yearly).
  • Luceco's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BST:2LC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (9 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Luceco Company Filings, last reported 9 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BST:2LC Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.09 0.09 0.09 1.00
2020-12-31 0.08 0.08 0.08 1.00
2020-04-02
2019-12-31 0.08 0.08 0.08 1.00
BST:2LC Past Financials Data
Date (Data in GBP Millions) EPS *
2019-06-30 0.06
2019-03-31 0.04
2018-12-31 0.01
2018-09-30 0.00
2018-06-30 -0.01
2018-03-31 0.03
2017-12-31 0.06
2017-09-30 0.06
2017-06-30 0.06
2017-03-31 0.05
2016-12-31 0.05
2016-09-30 0.05

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Luceco will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Luceco's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Luceco has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

2LC Past Performance

  How has Luceco performed over the past 5 years?

  • Luceco's last earnings update was 206 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Luceco's growth in the last year to its industry (Electrical).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Luceco's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Luceco has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Luceco has become profitable in the last year making it difficult to compare the DE Electrical industry average.
Earnings and Revenue History
Luceco's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Luceco Company Filings, last reported 9 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BST:2LC Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 171.50 10.00 43.90
2019-03-31 167.70 5.75 43.40
2018-12-31 163.90 1.50 42.90
2018-09-30 165.65 0.30 41.45
2018-06-30 167.40 -0.90 39.90
2018-03-31 167.50 4.55 36.95
2017-12-31 167.60 10.00 34.00
2017-09-30 158.30 9.55 30.43
2017-06-30 149.01 9.11 29.57
2017-03-31 141.35 7.85 29.09
2016-12-31 133.70 6.60 28.60
2016-09-30 124.38 7.36 27.07
2016-06-30 115.06 8.12 25.53
2016-03-31 109.06 6.97 23.96
2015-12-31 103.06 5.82 22.38
2014-12-31 82.26 4.53 16.61
2013-12-31 65.63 1.32 12.37

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Luceco has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Luceco used its assets more efficiently than the DE Electrical industry average last year based on Return on Assets.
  • Luceco's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Luceco's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electrical industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Luceco has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

2LC Health

 How is Luceco's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Luceco's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Luceco is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Luceco's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Luceco's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Luceco Company Filings, last reported 9 months ago.

BST:2LC Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 41.70 38.50 5.20
2019-03-31 41.70 38.50 5.20
2018-12-31 41.20 35.80 4.70
2018-09-30 41.20 35.80 4.70
2018-06-30 35.30 44.80 4.10
2018-03-31 35.30 44.80 4.10
2017-12-31 40.00 42.30 5.80
2017-09-30 40.00 42.30 5.80
2017-06-30 42.63 32.60 6.39
2017-03-31 42.63 32.60 6.39
2016-12-31 32.80 34.00 4.10
2016-09-30 32.80 34.00 4.10
2016-06-30 7.22 54.31 3.59
2016-03-31 7.22 54.31 3.59
2015-12-31 2.55 51.24 4.79
2014-12-31 -2.46 46.63 2.13
2013-12-31 -7.49 38.93 0.32
  • Luceco's level of debt (92.3%) compared to net worth is high (greater than 40%).
  • Luceco had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
  • Debt is well covered by operating cash flow (44.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.2x coverage).
X
Financial health checks
We assess Luceco's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Luceco has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

2LC Dividends

 What is Luceco's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.84%
Current annual income from Luceco dividends. Estimated to be 3.25% next year.
If you bought €2,000 of Luceco shares you are expected to receive €17 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Luceco's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.65%).
  • Luceco's dividend is below the markets top 25% of dividend payers in Germany (4.86%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BST:2LC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Germany Electrical Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 1.9%
Germany Market Average Dividend Yield Market Cap Weighted Average of 320 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BST:2LC Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.03 3.00
2020-12-31 0.02 3.00
2020-04-02
2019-12-31 0.02 3.00
BST:2LC Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-04-09 0.006 0.608
2018-09-10 0.000 0.000
2018-05-15 0.000 0.000
2018-04-30 0.000 0.000
2017-09-11 0.008 0.760
2017-04-21 0.003 0.127
2017-04-03 0.003 0.129

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Luceco is not paying a notable dividend for Germany, therefore no need to check if the payments are stable.
  • Luceco is not paying a notable dividend for Germany, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Luceco's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Luceco's dividends as it is not paying a notable one for Germany.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.2x coverage).
X
Income/ dividend checks
We assess Luceco's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Luceco afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Luceco has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

2LC Management

 What is the CEO of Luceco's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Hornby
COMPENSATION £504,000
AGE 50
TENURE AS CEO 15.3 years
CEO Bio

Mr. Jonathan Hornby is also known as John has been Chief Executive Officer of Luceco plc since 2005. Mr. Hornby serves as Chief Executive Officer of Nexus Industries, where he was previously the Operations Director. He joined Luceco in 1997. He was a Financial and Operating Partner at EPIC Private Equity LLP, Epic Plc and EPE Special Opportunities plc. Prior to that, he was employed at Perma. He spent four years with Arlen plc working in a variety of roles throughout the Group and was instrumental in putting together the acquisition of the Arlen businesses by Perma. Previously, he worked as a Management Consultant. He has been Director of Luceco plc since October 23, 2007. Mr. Hornby completed an Economics degree at Oxford University.

CEO Compensation
  • John's compensation has increased in line with Luceco recently becoming profitable.
  • John's remuneration is higher than average for companies of similar size in Germany.
Management Team

John Hornby

TITLE
CEO & Director
COMPENSATION
£504K
AGE
50
TENURE
15.3 yrs

Matt Webb

TITLE
CFO & Director
COMPENSATION
£467K
TENURE
2.2 yrs

Wayne Hill

TITLE
Head of Sales & Marketing
AGE
44

Ian Pritchard

TITLE
Group Financial Controller
COMPENSATION
£126K
AGE
49

Robin Willis

TITLE
Company Secretary
Board of Directors Tenure

Average tenure and age of the Luceco board of directors in years:

3.6
Average Tenure
50
Average Age
  • The tenure for the Luceco board of directors is about average.
Board of Directors

Giles Brand

TITLE
Non-Executive Chairman
COMPENSATION
£50K
AGE
45
TENURE
3.5 yrs

John Hornby

TITLE
CEO & Director
COMPENSATION
£504K
AGE
50
TENURE
12.5 yrs

Matt Webb

TITLE
CFO & Director
COMPENSATION
£467K
TENURE
1.8 yrs

Caroline Brown

TITLE
Independent Non-Executive Director
COMPENSATION
£50K
AGE
57
TENURE
3.6 yrs

Tim Surridge

TITLE
Independent Non-Executive Director
COMPENSATION
£50K
AGE
50
TENURE
3.6 yrs

John Barton

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£50K
AGE
75
TENURE
3.6 yrs

Will Hoy

TITLE
Non-Executive Director
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
13. Sep 19 Buy Matthew Webb Individual 13. Sep 19 13. Sep 19 36,013 €1.09 €39,155
X
Management checks
We assess Luceco's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Luceco has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

2LC News

Simply Wall St News

2LC Company Info

Description

Luceco plc manufactures and distributes various light emitting diode (LED) lighting products and wiring accessories in the United Kingdom, Europe, the Middle East, the Americas, the Asia Pacific, and Africa. It operates through four segments: Wiring Accessories, Portable Power, LED Lighting, and Ross and Other. The company offers interior lighting products, including panel, downlight, surface and pendant, ambient lighting, industrial lighting, and emergency lighting products; and exterior lighting products, such as floodlights, work lights, decorative exterior and architectural outdoor lighting products, and LED strips. It also provides LED lamps and tubes; and controls and drivers comprising microwave sensors, PIR sensors, remote controls, and drivers, as well as portable power equipment. In addition, the company offers wiring accessories that include switches and sockets, as well as circuit protection and cable management products; cable reels, extension leads, surge protection products, timers, and adaptors; and home entertainment products that include television wall mounts, audio visual accessories, and other items. Further, it imports and distributes electrical accessories; and provides administrative and development services. Additionally, the company supplies exterior lighting products, which comprise road and street LED lighting systems and controls, and high mast LED luminaires, as well as offers installation and maintenance services. It provides its products under the Luceco, Kingfisher Lighting, British General, Masterplug, and Ross brands through DIY, grocery, consumer electrical, high street, and online retailers; hybrid distributors, wholesalers, and trade-buying group distributors; and project developers, as well as wholesalers. The company was incorporated in 2004 and is headquartered in London, the United Kingdom.

Details
Name: Luceco plc
2LC
Exchange: BST
Founded: 2004
£125,954,325
155,300,470
Website: http://www.luceco.com
Address: Luceco plc
Caparo House,
103 Baker Street,
London,
Greater London, W1U 6LN,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE LUCE Ordinary Shares London Stock Exchange GB GBP 17. Oct 2016
DB 2LC Ordinary Shares Deutsche Boerse AG DE EUR 17. Oct 2016
BST 2LC Ordinary Shares Boerse-Stuttgart DE EUR 17. Oct 2016
BATS-CHIXE LUCEL Ordinary Shares BATS 'Chi-X Europe' GB GBP 17. Oct 2016
Number of employees
Current staff
Staff numbers
1,590
Luceco employees.
Industry
Electrical Components and Equipment
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/02 22:57
End of day share price update: 2020/04/02 00:00
Last estimates confirmation: 2020/04/01
Last earnings filing: 2019/09/09
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.