Luceco plc (LUCE) AI Stock Analysis

• Market Cap: £189.57M
• Dividend Yield: 4.07%
• Average Volume (3M): 143.85K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.46
• Revenue Growth: 16.03%
• EPS Growth: -11.84%
• Country: UK
• Employees: 1,707
• Sector: Industrials
• Sector Strength: 87
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.05
• Shares Outstanding: 160,800,000
• 10 Day Avg. Volume: 241,662
• 30 Day Avg. Volume: 143,847
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £159.00
• Price Target Upside: 29.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: 132.00p ▲(7.32%Upside)

The overall stock score is driven by a robust valuation with a low P/E ratio and high dividend yield, countered by weak technical indicators suggesting potential negative price momentum. Financial performance shows growth but is hampered by increased leverage and declining cash flow.

Luceco plc Business Overview & Revenue Model

Company Description

Luceco plc manufactures and distributes various light emitting diode (LED) lighting products and wiring accessories in the United Kingdom, Europe, the Middle East, the Americas, the Asia Pacific, and Africa. It operates through Wiring Accessories, Portable Power, and LED Lighting segments. The company offers interior lighting products, including panel, downlight, battens, and high bay; and exterior lighting products, such as floodlights, bulkheads, road lanterns, and bollards, as well as retrofit lamps and tubes, industrial lighting, exterior commercial and domestic site inspection, and lighting control products. It also provides wiring accessories that include switches and sockets, such as USB charging sockets, as well as Wi-Fi, smart, exterior, and IP weatherproof accessories; portable power products, such as cable reels, extension leads, surge protection devices, timers, and travel adaptors; and home entertainment products, including TV mounts, indoor aerials, SCART and HDMI leads, and TV interconnect accessories. In addition, the company offers circuit protection comprises consumer units and industrial switches; and cable management and accessories. Further, it imports and distributes electrical accessories; and provides administrative and development services. Additionally, the company offers automation products; electric vehicle chargers; and LED luminaires, as well as lighting design services. It primarily provides its products under the Luceco, Kingfisher Lighting, British General, Masterplug, and Ross brands. Luceco plc was incorporated in 2004 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Luceco plc generates revenue primarily through the manufacturing and sale of its electrical and lighting products. The company's key revenue streams include sales of LED lighting solutions, which are known for their energy efficiency and long lifespan, as well as wiring accessories and portable power products. Luceco benefits from its strong distribution network, which includes partnerships with major retailers, wholesalers, and professional installers. Additionally, the company's focus on innovation and sustainability contributes to its earnings by attracting environmentally conscious consumers and businesses looking to reduce energy costs.

Luceco plc Financial Statement Overview

Summary

Luceco plc has demonstrated robust revenue growth and stable operational efficiency. However, increased leverage and a significant decline in free cash flow are concerning. While the company maintains strong gross profit margins and a stable equity ratio, it needs to address declining profitability and cash flow issues.

Income Statement

Luceco plc has shown a steady revenue growth of 16.04% from 2023 to 2024, with a robust gross profit margin of 40.20% in 2024. However, the net profit margin decreased slightly from 7.99% in 2023 to 6.02% in 2024, indicating some pressure on net income. The EBIT margin remained stable, reflecting consistent operational efficiency.

Balance Sheet

The debt-to-equity ratio increased significantly to 0.83 in 2024 from 0.29 in 2023, showing increased leverage that may pose a risk. However, the equity ratio is still strong at 39.15%, indicating a solid capital structure. The return on equity decreased to 15.24% in 2024, suggesting reduced profitability for shareholders.

Cash Flow

Luceco plc experienced a significant decline in free cash flow by 67.31% from 2023 to 2024, which affects liquidity and investment capability. The operating cash flow to net income ratio of 1.01 in 2024 indicates cash generation is closely aligned with net income, though free cash flow to net income ratio dropped significantly to 0.47.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	242.50M	209.00M	206.30M	228.20M	176.20M
Gross Profit	97.50M	82.80M	71.40M	82.30M	68.00M
EBITDA	33.40M	31.50M	27.90M	42.60M	36.10M
Net Income	14.60M	16.70M	11.00M	27.10M	27.90M
Balance Sheet
Total Assets	244.80M	176.80M	178.10M	202.70M	163.70M
Cash, Cash Equivalents and Short-Term Investments	4.50M	4.90M	5.30M	7.30M	10.80M
Total Debt	79.20M	27.40M	34.70M	45.00M	25.00M
Total Liabilities	149.00M	83.00M	91.40M	115.00M	93.30M
Stockholders Equity	95.80M	93.80M	86.70M	87.70M	70.40M
Cash Flow
Free Cash Flow	6.80M	20.80M	30.10M	17.80M	17.70M
Operating Cash Flow	14.70M	29.00M	35.90M	24.40M	22.10M
Investing Cash Flow	-45.60M	-9.90M	-13.40M	-24.80M	-4.40M
Financing Cash Flow	30.50M	-19.80M	-24.40M	600.00K	-12.50M

Luceco plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 123.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LUCE, the sentiment is Negative. The current price of 123 is below the 20-day moving average (MA) of 137.98, below the 50-day MA of 143.26, and below the 200-day MA of 135.77, indicating a bearish trend. The MACD of -4.98 indicates Positive momentum. The RSI at 28.56 is Positive, neither overbought nor oversold. The STOCH value of 4.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:LUCE.

Luceco plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUCE	65 Neutral	£189.57M	12.91	15.40%	4.07%	16.03%	-11.84%
Sector *	64 Neutral	$10.61B	16.56	7.00%	2.15%	2.87%	-30.79%
EAAS	41 Neutral	£15.10M	―	-36.75%	―	20.98%	17.29%
DIA	―	£82.42M	―	-21.17%	―	―	―
SUP	81 Outperform	£220.56M	9.35	35.01%	2.66%	16.90%	32.92%
TFW	78 Outperform	£388.31M	15.84	14.53%	1.28%	-0.29%	11.71%
XPP	61 Neutral	£234.46M	―	-6.40%	―	-21.84%	10.56%

Luceco plc Corporate Events

Luceco plc Reports Strong H1 2025 Performance with Revenue and Profit Growth

Luceco plc reported a strong performance in the first half of 2025, with a 15% increase in revenue and a 10% rise in adjusted operating profit, driven by acquisitions and growth in EV charging products. The company maintains a robust balance sheet and a new £120m revolving credit facility, with full-year expectations remaining unchanged. Luceco’s strategic positioning and competitive advantages, including its product range and manufacturing capabilities, position it well for continued growth despite global economic uncertainties.

Luceco’s Pim Veraat to Lead SIG plc as CEO

Luceco plc announced that Pim Veraat, currently the Senior Independent Non-Executive Director at Luceco, will join the Board of SIG plc as Chief Executive Officer and Chair designate starting October 1, 2025. This move signifies a significant leadership transition for Luceco, potentially impacting its strategic direction and stakeholder relations as it adapts to this executive change.

Luceco PLC Announces Director’s Share Acquisition Under Incentive Plan

Luceco PLC announced a transaction involving Wayne Hill, a Managing Director and Person Discharging Managerial Responsibilities (PDMR), who acquired dividend shares under the company’s Share Incentive Plan. This transaction, conducted on the London Stock Exchange, reflects the company’s ongoing commitment to aligning management interests with shareholder value, potentially impacting stakeholder confidence positively.

Luceco plc AGM: Resolutions Passed and Strategic Moves Approved

Luceco plc, a company involved in the electrical industry, held its Annual General Meeting on May 20, 2025, where all proposed resolutions were passed. This includes the approval of the Annual Report, the declaration of a final dividend, and the re-election of several directors. The meeting also authorized the company to allot shares, disapply pre-emption rights, and purchase its own shares, indicating a strategic move to enhance shareholder value and operational flexibility.

Luceco plc Reports Strong Q1 2025 Performance with Revenue and Profit Growth

Luceco plc reported a strong start to 2025 with a 19% increase in revenue and an 8% rise in adjusted operating profit for Q1, driven by continued demand and previous acquisitions. The company maintains a stable financial position with a healthy debt ratio and plans for refinancing to support future growth. Despite mixed industry metrics, Luceco remains optimistic about its market position and growth potential, with a proposed dividend increase reflecting confidence in sustained profitability.

BlackRock Increases Stake in Luceco plc to 13.01%

Luceco plc has announced a change in its major holdings, with BlackRock, Inc. increasing its voting rights in the company to 13.01%. This adjustment in holdings, resulting from acquisitions and disposals of voting rights and financial instruments, reflects BlackRock’s strategic positioning and influence within Luceco, potentially impacting the company’s governance and decision-making processes.

BlackRock Increases Stake in Luceco PLC

Luceco PLC, a UK-based company, has announced a change in its major holdings, with BlackRock, Inc. acquiring a significant portion of voting rights. This acquisition increases BlackRock’s total voting rights in Luceco to 13%, reflecting a strategic move that could impact Luceco’s governance and decision-making processes.

Luceco plc Executives Acquire Shares Under Incentive Plan

Luceco plc has announced a series of share acquisitions under its Share Incentive Plan 2017, involving key executives including CEO Jonathan Hornby and CFO Will Hoy. These transactions, conducted on the London Stock Exchange, reflect the company’s ongoing commitment to aligning management interests with shareholder value, potentially impacting its market positioning and stakeholder confidence.