Lifestyle Communities Ltd (LIC) AI Stock Analysis

• Market Cap: AU$842.43M
• Dividend Yield: 1.44%
• Average Volume (3M): 375.65K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.41
• Revenue Growth: 8.28%
• EPS Growth: -39.60%
• Country: AU
• Employees: 180
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Diversified
• EPS (TTM): 0.19
• Shares Outstanding: 121,740,050
• 10 Day Avg. Volume: 576,405
• 30 Day Avg. Volume: 375,652
• PEG Ratio: -2.78
• Price to Book (P/B): 3.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -41.81
• 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$9.41
• Price Target Upside: 35.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 59 Neutral
• Price Target: AU$7.00 ▲(1.01%Upside)

The overall stock score reflects mixed financial performance and bearish technical indicators, despite a fair valuation. The company's strong revenue growth is overshadowed by weakening profitability and cash flow issues. Technical analysis indicates potential short-term downward pressure, which weighs heavily on the score.

Positive Factors

Financial Management

Greater confidence in LIC managing its cash flow to protect the balance sheet.

Future Growth

Expect growth in FY25 driven by LIC's development pipeline and softer inflation figures.

Growth Potential

The company is well positioned to ramp development when market conditions normalise.

Negative Factors

Customer Sentiment

Management noted customer sentiment has been negatively impacted due to recent media coverage.

Earnings Impact

Our FY25/26 EBITDA is -16%/-11% on our updated settlement outlook.

Valuation Concerns

Current valuation assuming LT growth is structurally impaired, which is disagreed upon.

Lifestyle Communities Ltd Business Overview & Revenue Model

Company Description

Lifestyle Communities Limited, together with its subsidiaries, provides housing for its homeowners in community in Australia. The company operates 26 communities, including 19 in operation and 7 in planning or development. It serves working, semi-retired, and retired people. The company was formerly known as Namberry Limited and changed its name to Lifestyle Communities Limited in June 2007. The company was incorporated in 1997 and is based in Melbourne, Australia.

How the Company Makes Money

Lifestyle Communities Ltd makes money primarily through the sale and management of homes within its residential communities. The company generates revenue by selling newly constructed homes to retirees and older individuals looking to relocate to its communities. Additionally, LIC earns ongoing income through weekly site fees charged to residents, which cover the maintenance of community facilities and other services. The company may also benefit from the appreciation of property values within its communities over time. Significant partnerships with local governments and developers may also play a role in acquiring land and developing new communities, contributing to their earnings.

Lifestyle Communities Ltd Financial Statement Overview

Summary

Lifestyle Communities Ltd exhibits a mixed financial performance. While revenue growth is strong, profitability metrics have weakened, indicating potential margin pressures. The balance sheet shows a solid equity base, but rising leverage could increase financial risk. Cash flow challenges may impact the company's ability to reinvest or service debt, warranting caution moving forward.

Income Statement

Lifestyle Communities Ltd shows consistent revenue growth over the years, with a notable increase from 2023 to 2024. However, the net profit margin decreased significantly from 2023 to 2024, indicating reduced profitability. The gross profit margin has also declined, pointing to increased cost pressures or pricing challenges. Despite this, the company maintains a respectable EBIT and EBITDA margin, reflecting operational efficiency.

Balance Sheet

The company has maintained a healthy equity ratio, indicating a stable capital structure. The debt-to-equity ratio has increased over the years, reflecting higher leverage, which could pose risks in economic downturns. However, the return on equity remained strong, suggesting effective use of shareholder funds for generating profits.

Cash Flow

Cash flow analysis reveals challenges in generating positive operating and free cash flows. The operating cash flow has turned negative in recent years, and free cash flow has significantly deteriorated, which could affect liquidity. The high operating cash flow to net income ratio in previous years now shows signs of strain, implying potential operational inefficiencies.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	258.37M	242.43M	232.29M	224.41M	137.90M	127.28M
Gross Profit	47.73M	45.78M	52.54M	53.12M	33.17M	29.78M
EBITDA	29.49M	27.04M	38.72M	38.82M	23.97M	23.68M
Net Income	51.95M	49.98M	81.90M	88.87M	91.11M	42.82M
Balance Sheet
Total Assets	1.58B	1.51B	1.20B	1.01B	782.62M	597.97M
Cash, Cash Equivalents and Short-Term Investments	1.50M	4.09M	1.23M	1.89M	2.30M	16.38M
Total Debt	360.75M	328.26M	376.06M	245.41M	190.62M	145.78M
Total Liabilities	729.79M	679.88M	670.71M	554.38M	404.52M	306.60M
Stockholders Equity	848.26M	831.75M	524.86M	453.46M	378.10M	291.37M
Cash Flow
Free Cash Flow	-38.05M	-126.20M	-38.94M	38.66M	-37.49M	3.09M
Operating Cash Flow	-31.79M	-115.23M	-30.41M	41.73M	-31.93M	5.70M
Investing Cash Flow	-86.97M	-88.15M	-82.04M	-80.67M	-21.13M	-32.77M
Financing Cash Flow	118.41M	206.25M	111.80M	38.53M	38.98M	38.47M

Lifestyle Communities Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LIC, the sentiment is Neutral. The current price of 6.93 is above the 20-day moving average (MA) of 6.80, below the 50-day MA of 7.21, and below the 200-day MA of 8.27, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 51.74 is Neutral, neither overbought nor oversold. The STOCH value of 81.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:LIC.

Lifestyle Communities Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIP	69 Neutral	AU$1.98B	20.10	3.99%	5.22%	4.34%	―
SGP	63 Neutral	$12.96B	28.76	4.54%	2.96%	18.41%	86.24%
LIC	59 Neutral	AU$842.43M	15.58	7.50%	1.44%	8.28%	-39.60%
GPT	58 Neutral	$9.29B	―	-1.94%	4.95%	8.59%	16.36%
MGR	55 Neutral	AU$8.68B	―	-6.29%	4.09%	22.66%	-3.80%
INA	54 Neutral	AU$2.23B	37.72	3.77%	1.90%	22.09%	-19.31%
Sector *	53 Neutral	$1.19B	3.25	-0.13%	7.48%	-1.64%	-127.49%

Lifestyle Communities Ltd Corporate Events

JPMorgan Reduces Stake in Lifestyle Communities Ltd

Lifestyle Communities Ltd, a company involved in providing housing solutions, has seen a change in the substantial holding of its shares. JPMorgan Chase & Co. and its affiliates have reduced their voting power from 6.91% to 5.25%, indicating a significant shift in their investment strategy regarding the company. This change in shareholding could impact the company’s market perception and influence its future strategic decisions.

The most recent analyst rating on (AU:LIC) stock is a Buy with a A$9.00 price target. To see the full list of analyst forecasts on Lifestyle Communities Ltd stock, see the AU:LIC Stock Forecast page.

JPMorgan Increases Stake in Lifestyle Communities Ltd

Lifestyle Communities Ltd, a company involved in the real estate sector, has experienced a change in the interests of its substantial holder, JPMorgan Chase & Co. and its affiliates. The substantial holder’s voting power has increased from 5.40% to 6.91% as of June 20, 2025. This change reflects JPMorgan’s increased stake in the company, which may impact the company’s market positioning and influence shareholder dynamics.

The most recent analyst rating on (AU:LIC) stock is a Buy with a A$9.00 price target. To see the full list of analyst forecasts on Lifestyle Communities Ltd stock, see the AU:LIC Stock Forecast page.

Lifestyle Communities Awaits VCAT Decision on Legal Proceedings

Lifestyle Communities Ltd is currently involved in proceedings before the Victorian Civil and Administrative Tribunal (VCAT) concerning preliminary legal issues. The hearings have concluded, and a decision is awaited from President Justice Woodward. The company has committed to keeping its shareholders informed as the situation develops.

Lifestyle Communities Director Increases Shareholding

Lifestyle Communities Ltd announced a change in the director’s interest, with Claire Elizabeth Hatton acquiring an additional 3,472 fully paid ordinary shares through an on-market purchase on April 8, 2025. This acquisition increases her total holdings to 9,671 shares, reflecting a continued commitment to the company and potentially signaling confidence in its future performance.

Macquarie Group Clarifies Stake in Lifestyle Communities

Lifestyle Communities Ltd, a company operating in the real estate sector, focuses on developing and managing residential communities tailored for the lifestyle needs of its residents. The recent announcement from Macquarie Group Limited clarifies that they are not a substantial holder of Lifestyle Communities Ltd, correcting a previous filing error. This correction ensures accurate information is maintained for stakeholders and the market, highlighting the importance of precise reporting in financial disclosures.

Lifestyle Communities Announces Equity Securities Issuance

Lifestyle Communities Limited announced the issuance and conversion of unquoted equity securities, reflecting a strategic financial maneuver to potentially enhance its capital structure. This move may impact the company’s market position by providing additional resources for growth and development, thereby potentially benefiting stakeholders through increased operational capacity.

Macquarie Group Gains Substantial Holding in Lifestyle Communities

Macquarie Group Limited has become a substantial holder in Lifestyle Communities Limited, a company focused on developing and managing affordable housing communities for retirees. This acquisition gives Macquarie Group significant voting power and control over the disposal of securities, potentially impacting the strategic direction and governance of Lifestyle Communities.

Leadership Transition at Lifestyle Communities Ltd

Lifestyle Communities Ltd announced that David Blight will resume his role as Non-Executive Chair of the Board effective 10 April 2025, after successfully transitioning Henry Ruiz into the position of Chief Executive Officer. This change signifies a smooth leadership transition and maintains stability in the company’s governance structure, which is crucial for its continued focus on providing affordable housing solutions.

Lifestyle Communities Ltd Reports Q3 FY25 Trading Update Amid Market Challenges

Lifestyle Communities Ltd reported a challenging operating environment in the Victorian residential property market, but noted improvements in sales rates for Q3 FY25. The company is executing its strategy to reduce excess inventory and advance land sales, aiming to release $80m to $100m to pay down debt. Despite ongoing market headwinds, the company remains committed to its strategic priorities and long-term vision, with a focus on enhancing its operational agility and stakeholder engagement.

JPMorgan Becomes Substantial Holder in Lifestyle Communities

JPMorgan Chase & Co. and its affiliates have become substantial holders in Lifestyle Communities Ltd, acquiring a 5.40% voting power through various securities and lending agreements. This acquisition marks a significant investment move, potentially impacting Lifestyle Communities’ market dynamics and stakeholder interests as JPMorgan strengthens its position within the company.