Luceco plc (LUCE) AI Stock Analysis

• Market Cap: £200.36M
• Dividend Yield: 3.86%
• Average Volume (3M): 328.57K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.61
• Revenue Growth: 18.90%
• EPS Growth: -20.79%
• Country: UK
• Employees: 1,707
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.06
• Shares Outstanding: 160,800,000
• 10 Day Avg. Volume: 177,154
• 30 Day Avg. Volume: 328,575
• PEG Ratio: -1.01
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 28.93
• 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: £177.50
• Price Target Upside: 34.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: 144.00p ▲(9.09% Upside)

Luceco plc's overall stock score reflects solid financial performance with strong revenue growth but concerns over increased leverage and declining cash flow. The technical analysis indicates a bearish trend, while the valuation is fair with a reasonable P/E ratio and dividend yield. Positive corporate events, including strong growth in EV charging products and strategic initiatives, enhance the outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing the company's competitive position and long-term viability.

Gross Profit Margin

A strong gross profit margin reflects efficient production and pricing strategies, supporting sustainable profitability and competitive advantage.

Market Position

As a leading manufacturer, Luceco benefits from brand recognition and market influence, which can drive sales and support long-term growth.

Negative Factors

Increased Leverage

Rising leverage can increase financial risk and limit the company's ability to invest in growth opportunities, potentially impacting long-term stability.

Declining Free Cash Flow

Reduced free cash flow affects liquidity and limits the company's ability to fund new projects or return capital to shareholders, posing a risk to future growth.

Net Profit Margin Pressure

Decreasing net profit margins suggest challenges in controlling costs or pricing power, which could impact long-term profitability and shareholder returns.

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 generates revenue through the sale of its diverse range of lighting and electrical products, focusing on energy-efficient solutions that meet contemporary standards and consumer demands. Key revenue streams include direct sales to wholesalers, distributors, and contractors, as well as partnerships with retail chains. The company benefits from ongoing trends toward energy efficiency and sustainability, which drive demand for its LED products. Additionally, Luceco's strategic initiatives, such as expanding its product portfolio and enhancing its market presence, contribute to its earnings by attracting new customers and retaining existing ones.

Luceco plc Financial Statement Overview

Summary

Luceco plc demonstrates solid revenue growth and stable operational efficiency. However, the increase in leverage and significant decline in free cash flow are concerning. The company shows resilience with strong gross profit margins and a stable equity ratio, yet 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	258.60M	242.50M	209.00M	206.30M	228.20M	176.20M
Gross Profit	103.30M	97.50M	82.80M	71.40M	82.30M	68.00M
EBITDA	35.30M	33.40M	31.50M	23.20M	42.60M	36.10M
Net Income	14.30M	14.60M	16.70M	11.00M	27.10M	27.90M
Balance Sheet
Total Assets	243.70M	244.80M	176.80M	178.10M	202.70M	163.70M
Cash, Cash Equivalents and Short-Term Investments	8.30M	4.50M	4.90M	6.00M	7.30M	10.80M
Total Debt	82.00M	79.20M	27.40M	34.70M	45.00M	25.00M
Total Liabilities	151.60M	149.00M	83.00M	91.40M	115.00M	93.30M
Stockholders Equity	92.10M	95.80M	93.80M	86.70M	87.70M	70.40M
Cash Flow
Free Cash Flow	20.90M	6.80M	20.80M	30.10M	17.80M	17.70M
Operating Cash Flow	26.70M	14.70M	29.00M	35.90M	24.40M	22.10M
Investing Cash Flow	-38.50M	-45.60M	-9.90M	-13.40M	-24.80M	-4.40M
Financing Cash Flow	17.60M	30.50M	-19.80M	-24.40M	600.00K	-12.50M

Luceco plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 132.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 132 is below the 20-day moving average (MA) of 132.58, below the 50-day MA of 133.33, and below the 200-day MA of 133.20, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 44.96 is Neutral, neither overbought nor oversold. The STOCH value of 13.55 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
TFW	78 Outperform	£320.05M	12.86	13.87%	2.51%	-0.33%	4.58%
SUP	75 Outperform	£175.98M	8.08	29.71%	3.33%	9.37%	-8.93%
LUCE	69 Neutral	£200.36M	13.82	15.66%	3.86%	18.90%	-20.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DIA	63 Neutral	£130.04M	24.41	15.77%	―	-5.73%	―
XPP	57 Neutral	£252.94M	-15.96	-8.12%	―	-18.43%	24.86%
EAAS	38 Underperform	£17.23M	-3.73	-36.75%	―	20.98%	17.29%

Luceco plc Corporate Events

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 Reports Strong Q3 2025 Performance with Significant Growth in EV Charging Products

Luceco plc reported a strong third quarter in 2025, with a 19.5% increase in revenue, driven largely by a 64% growth in EV charging products. The company expects full-year profitability to be at the upper end of market expectations, supported by a robust balance sheet and strong cash flow generation. Luceco’s strategic focus on electrification and operational efficiency, combined with its competitive advantages in channel access and product innovation, positions it for sustained above-market growth.

Luceco plc Reports Strong H1 2025 Results with Robust Revenue Growth

Luceco plc reported a solid performance in the first half of 2025, with a 14.7% increase in revenue to £125.7 million, driven by acquisitions and strong growth in EV charging products. Despite challenges in some international markets, the company maintained its full-year expectations, supported by a robust order book and strategic investments in energy transition and product innovation. Luceco’s competitive advantages, including its vertically integrated manufacturing and strong brand presence, position it well for future growth, with limited exposure to US/China tariffs and a new £120 million revolving credit facility to support further investments.