Laserbond Limited (LBL) AI Stock Analysis

• Market Cap: AU$42.35M
• Dividend Yield: 2.22%
• Average Volume (3M): 187.16K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.91
• Revenue Growth: 4.36%
• EPS Growth: -38.12%
• Country: AU
• Employees: 147
• Sector: Industrials
• Sector Strength: 87
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): <0.01
• Shares Outstanding: 117,651,990
• 10 Day Avg. Volume: 272,454
• 30 Day Avg. Volume: 187,155
• PEG Ratio: 0.57
• Price to Book (P/B): 2.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.94
• 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: AU$0.62
• Price Target Upside: 72.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: AU$0.50 ▲(38.89%Upside)

Laserbond Limited's strong financial performance is the primary driver of its score, highlighting consistent revenue growth and solid cash flow management. However, technical analysis suggests bearish momentum, which dampens the overall outlook. The fair valuation with a decent dividend yield supports the stock's attractiveness.

Positive Factors

Earnings

Management expects sustainable double-digit growth in earnings into the medium term.

ESG Requirements

Tightening of ESG requirements in heavy industries is expected to drive greater adoption of remanufacturing, benefiting Laserbond's services.

US Expansion

The US expansion is de-risked by several large customers requesting them to have a local US manufacturing base to assist with the wear problems for their US operations.

Negative Factors

Revenue Dependency

75% of LBL’s revenue is derived from its proprietary technology in laser cladding systems, indicating a high dependency on this single source.

Laserbond Limited Business Overview & Revenue Model

Company Description

LaserBond Limited, a surface engineering company, engages in the development and application of materials, technologies, and methodologies to enhance operating performance and wear life of capital-intensive machinery components in Australia. The company offers composite carbide steel mill rolls; and drilling tools. It also provides laser cladding, welding, machining, heat treatment, metallurgy laboratory, surface coating, remanufacturing, and vacuum heat treatment services, as well as thermal spraying, hard facing, and polymer coating services. In addition, the company licenses its surface engineering technologies. It serves mining, drilling, mineral processing, power generation, transport and marine, plant and machinery, manufacturing, fluid handling, and agriculture industries. The company was incorporated in 1992 and is headquartered in Sydney, Australia.

How the Company Makes Money

Laserbond Limited generates revenue through the provision of its surface engineering services, which are tailored to meet the specific needs of industries such as mining, manufacturing, and transport. The company earns income by offering customized solutions that extend the lifespan and efficiency of industrial components, thereby reducing maintenance costs for its clients. Additionally, Laserbond may engage in partnerships and collaborations that expand its technological offerings and market reach, further contributing to its revenue streams.

Laserbond Limited Financial Statement Overview

Summary

Laserbond Limited exhibits strong financial performance with consistent revenue growth and solid profitability. Despite a slight decline in EBIT margin and increased leverage, the company's robust equity position and efficient cash generation capabilities suggest a stable financial trajectory.

Income Statement

Laserbond Limited demonstrates strong financial performance with consistent revenue growth over the years, highlighted by a 8.72% increase from 2023 to 2024. The company maintains solid profitability, with a gross profit margin of approximately 51.54% and a net profit margin of 8.39% in 2024. However, there was a slight decline in EBIT margin from 17.52% in 2023 to 14.01% in 2024, indicating a potential area for operational improvement.

Balance Sheet

The balance sheet reflects a healthy equity position, with stockholders' equity representing 63.36% of total assets in 2024. The debt-to-equity ratio stands at 0.35, showcasing manageable leverage. Return on equity is robust at 9.17%, driven by solid net income. However, the increase in total debt raises caution for future leverage risks.

Cash Flow

Laserbond Limited's cash flow statement is favorable, with a strong operating cash flow to net income ratio of 1.90 in 2024, indicating efficient cash generation from operations. The free cash flow to net income ratio is 1.67, reflecting effective capital expenditure management. Despite a decline in free cash flow from the previous year, the company maintains a solid cash position.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	42.00M	41.98M	38.61M	30.71M	24.66M	22.18M
Gross Profit	21.16M	21.64M	11.75M	9.29M	6.19M	6.55M
EBITDA	6.21M	9.54M	10.26M	8.68M	6.38M	6.19M
Net Income	2.87M	3.52M	4.76M	3.63M	2.84M	2.81M
Balance Sheet
Total Assets	60.42M	60.67M	51.83M	44.50M	29.53M	23.60M
Cash, Cash Equivalents and Short-Term Investments	4.19M	5.76M	8.93M	5.68M	4.91M	4.00M
Total Debt	12.67M	13.56M	11.83M	9.29M	10.70M	8.48M
Total Liabilities	21.63M	22.23M	20.76M	17.00M	15.27M	11.37M
Stockholders Equity	38.79M	38.44M	31.07M	27.51M	14.26M	12.24M
Cash Flow
Free Cash Flow	3.48M	5.88M	6.38M	2.35M	4.31M	3.66M
Operating Cash Flow	4.14M	6.71M	7.70M	4.24M	4.76M	4.26M
Investing Cash Flow	-5.57M	-5.78M	-1.33M	-10.86M	-1.27M	-594.01K
Financing Cash Flow	-4.58M	-4.09M	-3.13M	7.37M	-2.58M	-1.86M

Laserbond Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LBL, the sentiment is Negative. The current price of 0.36 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.39, and below the 200-day MA of 0.49, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.56 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:LBL.

Laserbond Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LBL	73 Outperform	AU$42.35M	14.40	8.11%	2.22%	4.36%	-38.12%
Sector *	58 Neutral	$1.33B	4.26	-2.93%	8.38%	3.41%	-51.76%
FRCEF		$1.91B	―	-1.32%	―	―	―
27P		€149.84M	8.20	5.38%	―	―	―
QCKSF		$26.94M	―	7.36%	―	―	―
SNC	75 Outperform	AU$116.07M	6.99	13.15%	10.92%	-13.51%	-9.61%
AMC	69 Neutral	AU$32.43B	16.61	20.24%	8.85%	-1.42%	25.16%

Laserbond Limited Corporate Events

LaserBond Announces Interim Dividend and Director’s Share Acquisition

LaserBond Limited has announced the payment of a fully franked interim dividend of 0.4 cents per share to its shareholders. Additionally, the company disclosed a change in the director’s interest, with Philip Suriano acquiring 5,330 shares through the Dividend Reinvestment Plan, reflecting continued confidence in the company’s financial health and strategic direction.

Laserbond Limited Announces Quotation of New Securities on ASX

Laserbond Limited has announced the application for the quotation of 320,482 ordinary fully paid securities on the ASX, issued under a dividend or distribution plan. This move is indicative of the company’s strategic efforts to enhance its financial positioning and shareholder value, potentially impacting its market presence and stakeholder interests positively.