Lynch Group Holding Ltd (LGL) AI Stock Analysis

• Market Cap: AU$219.11M
• Dividend Yield: 7.24%
• Average Volume (3M): 7.07K
• Price to Earnings (P/E): 124.7
• Beta (1Y): 0.02
• Revenue Growth: 1.56%
• EPS Growth: N/A
• Country: AU
• Employees: 390
• Sector: Industrials
• Sector Strength: 94
• Industry: Agricultural Farm Products
• EPS (TTM): -2.18
• Shares Outstanding: 122,066,110
• 10 Day Avg. Volume: 8,116
• 30 Day Avg. Volume: 7,065
• PEG Ratio: 1.19
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.33
• 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$2.00
• Price Target Upside: 11.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: AU$2.00 ▲(11.11%Upside)

Lynch Group Holding Ltd. presents a moderate investment outlook. The primary concern is its profitability challenges, with net losses affecting overall financial stability. However, positive cash flow and a strong dividend yield provide some support. Technical indicators suggest potential price stability, but the high P/E ratio raises valuation concerns.

Lynch Group Holding Ltd Business Overview & Revenue Model

Company Description

Lynch Group Holdings Limited operates as a grower, wholesaler, retailer, and importer of flowers and potted plants in Australia and China. The company's product portfolio includes gerbera, geraldton wax, phalaenopsis orchids, potted color products, and other wildflowers. It also exports its products. The company sells its products through florists, online marketplaces, supermarkets, and independent retailers. Lynch Group Holdings Limited was founded in 1915 and is based in Moorebank, Australia.

How the Company Makes Money

Lynch Group Holding Ltd generates revenue through multiple channels, primarily focusing on the sale of floral and gifting products. The company operates a vertically integrated business model, which allows it to control costs and quality throughout the supply chain—from production to retail distribution. Key revenue streams include wholesale distribution to major supermarket chains, retail sales through its branded stores, and online sales platforms. Strategic partnerships with large retailers in Australia and China enhance its market reach and contribute significantly to its earnings. Additionally, LGL benefits from seasonal demand spikes during holidays and special occasions, which drive higher sales volumes.

Lynch Group Holding Ltd Financial Statement Overview

Summary

Lynch Group Holding Ltd. faces profitability challenges with net losses impacting profitability metrics. Stability in revenue and strong gross profit margin are positive indicators. The balance sheet is stable with manageable leverage, while cash flows show resilience despite net income challenges.

Income Statement

Lynch Group Holding Ltd. shows mixed performance in profitability metrics. Gross profit margin improved significantly in 2024, indicating better cost management. However, the net profit margin is negative due to a net loss, which highlights profitability challenges. Revenue growth is modest, suggesting stable but slow revenue expansion.

Balance Sheet

The company's balance sheet indicates moderate leverage with a stable debt-to-equity ratio. Return on equity has deteriorated due to net losses, impacting shareholder returns. The equity ratio remains healthy, indicating a relatively strong asset base compared to liabilities.

Cash Flow

Cash flow analysis reveals a positive operating cash flow, demonstrating the company's ability to generate cash from operations. Free cash flow has declined but remains positive, suggesting potential for reinvestment or debt reduction. However, the free cash flow to net income ratio is under pressure due to net losses.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	397.71M	395.26M	366.50M	300.20M	230.43M
Gross Profit	185.72M	40.04M	173.80M	143.20M	26.91M
EBITDA	9.50M	42.31M	48.22M	45.96M	23.41M
Net Income	-26.05M	9.94M	19.58M	24.87M	5.84M
Balance Sheet
Total Assets	356.03M	401.67M	388.81M	372.39M	218.24M
Cash, Cash Equivalents and Short-Term Investments	32.34M	36.41M	31.98M	48.99M	15.24M
Total Debt	99.73M	100.58M	83.70M	82.45M	98.07M
Total Liabilities	157.24M	163.15M	146.05M	151.05M	147.65M
Stockholders Equity	198.79M	238.53M	242.75M	221.34M	70.60M
Cash Flow
Free Cash Flow	15.01M	16.29M	4.55M	15.31M	19.05M
Operating Cash Flow	26.55M	32.49M	34.60M	25.07M	22.77M
Investing Cash Flow	-11.53M	-16.20M	-40.17M	-28.38M	-13.78M
Financing Cash Flow	-19.00M	-12.39M	-10.95M	37.08M	4.12M

Lynch Group Holding Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LGL, the sentiment is Positive. The current price of 1.8 is above the 20-day moving average (MA) of 1.74, above the 50-day MA of 1.70, and above the 200-day MA of 1.72, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.15 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:LGL.

Lynch Group Holding Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$11.06B	15.73	5.16%	1.93%	3.12%	-25.59%
LGL	60 Neutral	AU$219.11M	124.65	0.89%	7.24%	1.56%	―
2WO	―	€7.34M	―	-130.28%	―	―	―
SGLLV	70 Outperform	AU$743.84M	10.68	11.56%	5.85%	-1.58%	6.26%
MCA	48 Neutral	AU$113.37M	―	-2.58%	―	12.97%	74.18%
WNR	46 Neutral	AU$1.23M	―	-130.24%	―	-61.74%	69.69%
FRM	46 Neutral	AU$69.24M	―	1.33%	―	-0.71%	91.71%

Lynch Group Holding Ltd Corporate Events

Lynch Group Holdings Reports Strong FY25 Growth in Australia and China

Lynch Group Holdings Limited reported strong revenue growth in its Australian operations, particularly during major events like Mother’s Day, with a 6% increase in revenue year-to-date compared to FY24. In China, despite global trade uncertainties, the company saw a 16% revenue increase due to improved pricing and demand for floral products. The Group anticipates a 7% growth in overall revenue for FY25, with EBITDA projected between $42 million and $43 million, excluding certain costs. The company’s performance reflects resilience and strategic management in both markets, positioning it well for future growth.

The most recent analyst rating on (AU:LGL) stock is a Buy with a A$1.90 price target. To see the full list of analyst forecasts on Lynch Group Holding Ltd stock, see the AU:LGL Stock Forecast page.