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London City Equities Ltd (AU:LCE)
ASX:LCE
Australian Market
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London City Equities Ltd (LCE) AI Stock Analysis

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AU:LCE

London City Equities Ltd

(Sydney:LCE)

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Neutral 54 (OpenAI - 5.2)
Rating:54Neutral
Price Target:
AU$0.67
▼(-20.82% Downside)
Action:Reiterated
Date:03/24/26
The score is driven primarily by financials: a strong, low-risk (no-debt) balance sheet and improved FY2025 profitability are offset by a major FY2025 cash flow shortfall that weakens confidence in earnings quality. Technicals are neutral-to-soft with limited trend strength and mildly negative momentum. Valuation is a headwind due to the high P/E, only partly supported by a moderate dividend yield.
Positive Factors
No debt / conservative balance sheet
A zero‑debt balance sheet gives the company durable financial flexibility and low solvency risk, reducing interest burden and increasing capacity to fund operations, strategic initiatives or dividends from internal resources during downturns without refinancing pressure.
Negative Factors
FY2025 cash flow shortfall
A deep operating and free cash flow deficit despite reported profit materially weakens earnings quality, forcing reliance on balance sheet liquidity or external funding for operations and dividends, and raising persistent risk that accounting profits will not translate into cash for shareholders.
Read all positive and negative factors
Positive Factors
Negative Factors
No debt / conservative balance sheet
A zero‑debt balance sheet gives the company durable financial flexibility and low solvency risk, reducing interest burden and increasing capacity to fund operations, strategic initiatives or dividends from internal resources during downturns without refinancing pressure.
Read all positive factors

London City Equities Ltd (LCE) vs. iShares MSCI Australia ETF (EWA)

London City Equities Ltd Business Overview & Revenue Model

Company Description
London City Equities Limited operates as a publicly listed investment management firm. Its core activity involves allocating capital within Australia's public equity markets. The company, headquartered in Sydney, Australia, was established in 1986....

London City Equities Ltd Financial Statement Overview

Summary
Earnings improved in FY2025 with a strong revenue rebound and a return to positive net income, and the balance sheet is very conservative with zero debt. However, operating and free cash flow were deeply negative in FY2025 despite positive earnings, raising concerns about cash conversion and earnings quality.
Income Statement
64
Positive
Balance Sheet
82
Very Positive
Cash Flow
38
Negative
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue2.09M1.81M1.25M1.27M2.41M558.89K
Gross Profit951.12K1.28M923.61K722.93K2.16M534.89K
EBITDA572.98K776.90K46.02K169.63K1.92M166.55K
Net Income382.17K499.91K-6.48K169.63K1.81M-29.17K
Balance Sheet
Total Assets30.87M27.11M26.61M20.61M22.97M19.61M
Cash, Cash Equivalents and Short-Term Investments17.10M11.37M19.76K293.36K1.55M1.35M
Total Debt0.000.000.000.000.000.00
Total Liabilities2.99M2.49M5.18M3.15M3.85M3.37M
Stockholders Equity27.87M24.62M21.44M17.46M19.12M16.24M
Cash Flow
Free Cash Flow-9.31M-10.72M508.26K-48.00K1.92M13.06K
Operating Cash Flow-9.31M-10.72M508.26K-48.00K1.92M13.06K
Investing Cash Flow10.14M11.82M-138.63K-1.30M-1.47M-418.84K
Financing Cash Flow-1.15M-1.08M-367.46K-189.39K-251.43K1.76M

London City Equities Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.85
Price Trends
50DMA
0.83
Negative
100DMA
0.84
Negative
200DMA
0.84
Negative
Market Momentum
MACD
-0.04
Positive
RSI
<0.01
Positive
STOCH
>-0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LCE, the sentiment is Negative. The current price of 0.85 is above the 20-day moving average (MA) of 0.81, above the 50-day MA of 0.83, and above the 200-day MA of 0.84, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at <0.01 is Positive, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:LCE.

London City Equities Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
61
Neutral
AU$25.19M1.7539.91%8.57%-27.02%
61
Neutral
AU$49.19M-31.793.43%6.89%-26.20%-112.45%
60
Neutral
AU$38.61M4.7023.54%7.09%418.16%580.37%
54
Neutral
AU$20.95M70.251.46%2.94%68.66%278.13%
53
Neutral
AU$24.71M21.904.11%2.03%35.83%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:LCE
London City Equities Ltd
0.66
-0.15
-18.52%
AU:GC1
Glennon Small Companies Ltd
0.42
-0.07
-14.96%
AU:CIW
Clime Investment Management Ltd
0.30
-0.07
-18.03%
AU:NAC
NAOS Ex-50 Opportunities Co. Ltd.
0.55
0.09
18.28%
AU:SB2
Salter Brothers Emerging Companies Ltd.
0.59
-0.07
-10.00%
AU:CDO
Cadence Opportunities Fund Ltd.
2.45
0.77
45.66%

London City Equities Ltd Corporate Events

London City Equities Director Adds to Indirect Shareholding
Jun 3, 2026
London City Equities has disclosed a minor change in director David G. Butel&#8217;s indirect shareholding following an on-market purchase. Through Imperial Pacific Limited, a company where he is a director and shareholder, Butel acquired 35 fully...
London City Equities director reports minor increase in indirect shareholding
May 8, 2026
London City Equities Limited has reported a minor change in the indirect shareholding of director David G. Butel, as disclosed to the ASX under listing rule obligations. His interests are held through the DG Butel Superannuation Fund and Imperial ...
London City Equities Director Slightly Increases Indirect Shareholding
Apr 30, 2026
London City Equities has disclosed a minor change in director David G. Butel&#8217;s indirect shareholding following on-market trades in late April 2026. Through his superannuation fund and Imperial Pacific Limited, Butel acquired an additional 26...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Mar 24, 2026