Lycopodium Limited (LYL) AI Stock Analysis

• Market Cap: AU$587.44M
• Dividend Yield: 2.51%
• Average Volume (3M): 40.13K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.83
• Revenue Growth: -3.08%
• EPS Growth: -16.35%
• Country: AU
• Employees: 1,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.44
• Shares Outstanding: 39,740,227
• 10 Day Avg. Volume: 32,833
• 30 Day Avg. Volume: 40,132
• PEG Ratio: -0.57
• Price to Book (P/B): 2.71
• Price to Sales (P/S): 1.23
• P/FCF Ratio: 11.68
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.13
• Revenue Forecast (FY): AU$379.70M

• Rating: 75 Outperform
• Price Target: AU$16.50 ▲(31.79% Upside)

Lycopodium Limited's stock is supported by strong financial performance and attractive valuation. The technical analysis indicates positive momentum, although caution is advised due to potential overbought conditions. The lack of recent earnings call data and corporate events does not impact the score.

Positive Factors

High Profit Margins

Exceptionally high gross margin and solid net margin indicate durable pricing power and efficient execution in engineering services. These margins support reinvestment and buffer against project cost variability, sustaining profitability across cycles.

Strong Balance Sheet and Low Leverage

Very low leverage and a strong equity base provide financial flexibility to pursue bids, withstand project delays, and invest in growth without overreliance on debt. This conservatism reduces solvency risk in capital-intensive project cycles.

Diversified Contract Revenue Streams

Multiple contract types and strategic partner relationships diversify revenue and shift risk between customers and the firm. This mix supports recurring work, smoother cash flows and repeat business, improving predictability over medium-term project cycles.

Negative Factors

Declining Revenue Trend

Sustained revenue contraction reduces scale benefits and can pressure margins as fixed costs are spread over lower volumes. Continued declines risk eroding competitive position and backlog replenishment, making long-term growth harder to restore.

Negative Free Cash Flow Growth

Declining free cash flow growth limits capacity to fund capital needs, dividends, or to bid competitively on new projects. If persistent, it can force reliance on external financing or constrain strategic investments that sustain future revenue.

Earnings Per Share Decline

A marked EPS decline suggests earnings pressure beyond one-offs, signaling operational or demand challenges. Continued EPS contraction can weaken reinvestment capacity and strategic initiatives, undermining long-term shareholder value creation.

Lycopodium Limited Business Overview & Revenue Model

Company Description

Lycopodium Limited (LYL) is an Australian engineering and project management company that specializes in providing services to the resources, infrastructure, and industrial sectors. The company focuses on delivering high-quality solutions in areas such as project development, engineering design, and asset management. Lycopodium's core offerings include feasibility studies, detailed engineering, procurement, and construction management, primarily for mining and mineral processing projects.

How the Company Makes Money

Lycopodium generates revenue through multiple streams, primarily by charging fees for its engineering, project management, and consulting services. The company typically operates on a contract basis, earning income from fixed-price contracts, time and materials contracts, and performance-based contracts, which allow for flexibility in pricing based on project parameters. Key revenue streams include project delivery for mining companies, consultancy services for feasibility studies, and ongoing support for asset management. Additionally, Lycopodium has formed strategic partnerships with various mining firms and industry stakeholders, enhancing its market presence and securing repeat business, which contributes significantly to its earnings.

Lycopodium Limited Financial Statement Overview

Summary

Lycopodium Limited demonstrates strong profitability with high margins and efficient cost management. The balance sheet is solid with low leverage and strong equity. However, declining revenue growth and negative free cash flow growth are potential concerns.

Income Statement

Lycopodium Limited shows strong profitability with a high gross profit margin of 92.1% and a solid net profit margin of 12.6% for the latest year. However, the revenue growth rate is negative at -0.5%, indicating a decline in sales. The EBIT and EBITDA margins are healthy at 15.9% and 20.3%, respectively, reflecting efficient cost management.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.11, indicating prudent financial leverage. Return on equity is robust at 27.8%, showcasing effective use of shareholder funds. The equity ratio stands at 63.0%, suggesting a strong equity base relative to total assets.

Cash Flow

Operating cash flow to net income ratio is 0.88, indicating good cash generation relative to earnings. However, free cash flow growth is negative at -9.1%, which could be a concern if it persists. The free cash flow to net income ratio is 0.83, showing that a significant portion of earnings is converted to free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	333.95M	333.94M	344.55M	323.88M	228.71M	158.06M
Gross Profit	88.21M	307.69M	312.49M	80.35M	42.38M	42.99M
EBITDA	65.18M	67.82M	74.55M	70.48M	45.64M	25.95M
Net Income	42.22M	42.22M	50.71M	46.78M	27.18M	14.20M
Balance Sheet
Total Assets	241.08M	241.08M	217.04M	219.83M	224.12M	169.66M
Cash, Cash Equivalents and Short-Term Investments	79.67M	79.67M	68.19M	82.41M	100.95M	76.84M
Total Debt	16.42M	16.42M	12.33M	15.70M	16.65M	17.90M
Total Liabilities	90.61M	90.61M	89.60M	106.87M	124.45M	81.99M
Stockholders Equity	151.87M	151.87M	128.06M	114.64M	100.50M	88.38M
Cash Flow
Free Cash Flow	35.60M	35.24M	26.76M	15.38M	37.72M	-15.82M
Operating Cash Flow	37.56M	37.21M	27.84M	19.79M	41.68M	-12.91M
Investing Cash Flow	-1.98M	-922.21K	1.26M	-4.45M	655.17K	-2.61M
Financing Cash Flow	-24.76M	-24.76M	-40.38M	-34.05M	-18.51M	-11.74M

Lycopodium Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LYL, the sentiment is Positive. The current price of 12.52 is below the 20-day moving average (MA) of 14.02, below the 50-day MA of 13.32, and above the 200-day MA of 11.74, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 72.84 is Negative, neither overbought nor oversold. The STOCH value of 81.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:LYL.

Lycopodium Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LYL	75 Outperform	AU$587.44M	14.02	29.67%	2.51%	-3.08%	-16.35%
DUR	74 Outperform	AU$526.01M	22.42	34.21%	2.25%	3.10%	5.08%
GNP	73 Outperform	AU$1.17B	32.78	25.18%	0.57%	36.30%	82.20%
GNG	71 Outperform	AU$726.70M	20.92	50.61%	5.24%	12.96%	8.19%
ACF	69 Neutral	AU$336.49M	14.27	16.13%	5.71%	25.14%	-14.54%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Lycopodium Limited Corporate Events

Lycopodium Limited Addresses Late Lodgment of Director Interest Notices

Lycopodium Limited addressed a late lodgment of Appendices 3Y related to changes in directors’ securities holdings, attributing the delay to an administrative oversight. The company emphasized its commitment to compliance with ASX Listing Rules through existing policies and communication with directors, ensuring such oversights are unlikely to recur.

The most recent analyst rating on (AU:LYL) stock is a Buy with a A$13.50 price target. To see the full list of analyst forecasts on Lycopodium Limited stock, see the AU:LYL Stock Forecast page.

Lycopodium Director Adjusts Shareholding

Lycopodium Limited announced a change in the director’s interest, with Director Peter De Leo selling 30,000 ordinary shares valued at $390,000. This transaction, conducted as an on-market sale, reduces his holding to 909,053 fully paid ordinary shares. Such changes in director’s interests can impact investor perception and reflect strategic financial decisions by company leadership.

The most recent analyst rating on (AU:LYL) stock is a Buy with a A$13.50 price target. To see the full list of analyst forecasts on Lycopodium Limited stock, see the AU:LYL Stock Forecast page.

Lycopodium Limited Issues New Securities to Bolster Capital Structure

Lycopodium Limited has announced the issuance of 372,392 ordinary fully paid securities as of December 1, 2025. This move reflects the company’s ongoing financial strategies and could potentially impact its market positioning by enhancing its capital structure and supporting future growth initiatives.

The most recent analyst rating on (AU:LYL) stock is a Buy with a A$13.50 price target. To see the full list of analyst forecasts on Lycopodium Limited stock, see the AU:LYL Stock Forecast page.

Lycopodium Director Increases Stake Through Performance Rights Vesting

Lycopodium Limited announced a change in the director’s interest, with Bruno Ruggiero acquiring additional shares through the vesting of performance rights. This change reflects the director’s increased stake in the company, potentially signaling confidence in the company’s future performance and aligning the director’s interests with those of the shareholders.

The most recent analyst rating on (AU:LYL) stock is a Buy with a A$13.50 price target. To see the full list of analyst forecasts on Lycopodium Limited stock, see the AU:LYL Stock Forecast page.

Lycopodium Limited Announces Director’s Interest Change

Lycopodium Limited has announced a change in the director’s interest notice for Peter De Leo. The change involves the conversion of Class A Performance Rights into fully paid ordinary shares, increasing De Leo’s holdings to 939,053 shares and reducing his performance rights to 42,848. This adjustment in the director’s interests reflects internal financial movements within the company, potentially impacting shareholder perceptions and the company’s governance transparency.

The most recent analyst rating on (AU:LYL) stock is a Buy with a A$13.50 price target. To see the full list of analyst forecasts on Lycopodium Limited stock, see the AU:LYL Stock Forecast page.

Lycopodium Limited Announces Director’s Interest Change

Lycopodium Limited has announced a change in the director’s interest notice, specifically for Director Karl Cicanese. The change involves the acquisition of 12,544 Class A Performance Rights under the company’s Incentive Performance Rights Plan, as approved at the 2025 Annual General Meeting. This adjustment reflects the company’s ongoing commitment to aligning director incentives with performance objectives, potentially impacting the company’s governance and stakeholder relations.

The most recent analyst rating on (AU:LYL) stock is a Buy with a A$13.50 price target. To see the full list of analyst forecasts on Lycopodium Limited stock, see the AU:LYL Stock Forecast page.

Lycopodium Limited Announces Director’s Interest Change

Lycopodium Limited has announced a change in the director’s interest notice, specifically regarding Bruno Ruggiero. The change involves the acquisition of 11,836 Class A Performance Rights under the company’s Incentive Performance Rights Plan, as approved at the 2025 AGM. This adjustment reflects the company’s ongoing commitment to aligning director incentives with company performance, potentially impacting stakeholder perceptions positively.

The most recent analyst rating on (AU:LYL) stock is a Buy with a A$13.50 price target. To see the full list of analyst forecasts on Lycopodium Limited stock, see the AU:LYL Stock Forecast page.

Lycopodium Limited Announces Change in Director’s Interest

Lycopodium Limited announced a change in the director’s interest, specifically regarding Peter De Leo, who acquired additional Class A Performance Rights under the company’s Incentive Performance Rights Plan. This change reflects the company’s ongoing commitment to aligning director incentives with corporate performance, potentially impacting shareholder value and company operations positively.

The most recent analyst rating on (AU:LYL) stock is a Buy with a A$13.50 price target. To see the full list of analyst forecasts on Lycopodium Limited stock, see the AU:LYL Stock Forecast page.

Lycopodium Limited Announces Successful Outcomes of FY2025 AGM

Lycopodium Limited held its FY2025 Annual General Meeting on 13 November 2025, where key resolutions were passed. The meeting included the adoption of the Remuneration Report and the election and re-election of directors, with all motions carried successfully. These outcomes reflect the company’s stable governance and continued focus on strategic leadership, which may positively impact its operations and stakeholder confidence.

The most recent analyst rating on (AU:LYL) stock is a Buy with a A$13.50 price target. To see the full list of analyst forecasts on Lycopodium Limited stock, see the AU:LYL Stock Forecast page.

Lycopodium Limited’s FY25 Sustainability Report Highlights Commitment to Sustainable Practices

Lycopodium Limited has released its FY25 Sustainability Report, highlighting its commitment to sustainable practices and alignment with the United Nations Sustainable Development Goals. The report outlines the company’s governance, risk management strategies, and performance metrics, emphasizing its efforts to manage environmental and social impacts. This announcement underscores Lycopodium’s dedication to integrating sustainability into its operations, potentially enhancing its industry positioning and stakeholder relations.

The most recent analyst rating on (AU:LYL) stock is a Buy with a A$13.50 price target. To see the full list of analyst forecasts on Lycopodium Limited stock, see the AU:LYL Stock Forecast page.

Lycopodium Director Alters Shareholding with Major Sale

Lycopodium Limited announced a significant change in the interest of its director, Karl Cicanese, who sold 200,000 fully paid ordinary shares valued at $2,550,000, reducing his holdings to 200 shares. This transaction reflects a notable shift in the director’s investment position, potentially impacting stakeholder perceptions and the company’s market dynamics.

The most recent analyst rating on (AU:LYL) stock is a Buy with a A$13.50 price target. To see the full list of analyst forecasts on Lycopodium Limited stock, see the AU:LYL Stock Forecast page.