Ludan (LUDN) AI Stock Analysis

• Market Cap: 144.87M
• Dividend Yield: 8.27%
• Average Volume (3M): 10.24K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.94
• Revenue Growth: -21.65%
• EPS Growth: -30.92%
• Country: IL
• Employees: 1,079
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 38.60
• Shares Outstanding: 11,524,676
• 10 Day Avg. Volume: 4,331
• 30 Day Avg. Volume: 10,237
• PEG Ratio: 10.44
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 4.37
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 1,328.00 ▲(5.65% Upside)

Ludan's overall stock score is driven by its strong valuation, offering an attractive P/E ratio and high dividend yield. However, bearish technical indicators and declining revenue growth weigh on the score. The company's stable financial performance and cash flow management provide some support.

Positive Factors

Cash Flow Management

Strong free cash flow growth indicates improved cash generation capabilities, enhancing financial flexibility and supporting future investments.

Leverage Management

Improved leverage management reduces financial risk and enhances the company's ability to finance growth initiatives sustainably.

Profitability

High return on equity reflects efficient management and strong profitability, indicating effective capital utilization and shareholder value creation.

Negative Factors

Revenue Decline

Declining revenue growth can hinder the company's ability to expand and invest in new opportunities, potentially impacting long-term competitiveness.

Low Operating Cash Flow

Low conversion of income into cash may indicate inefficiencies in cash management, potentially affecting liquidity and operational flexibility.

Declining EPS Growth

A significant decline in EPS growth suggests challenges in maintaining profitability, which could affect investor confidence and future earnings potential.

Ludan Business Overview & Revenue Model

Company Description

Ludan Engineering Co. Ltd operates as an engineering company worldwide. It is involved in the provision of engineering and project management services that include management, planning, procurement, and construction services, as well as turn-key services; technological solutions for industrial wastewater; soil and groundwater pollution survey and rehabilitation services; treatment of exhaust gases; and emission survey services. The company also develops, produces, installs, and maintains computerized ticketing systems, access control systems, and vehicle fleet management systems; produces automatic inspection systems; provides real-time command and control systems and feasibility testing services; and implements international management services. In addition, it provides systems and equipment in the fields of structure control, security, and access control, as well as engages in the operation and maintenance of the systems; and develops and supplies information security solutions for infrastructure companies and industrial factories. The company was incorporated in 1977 and is headquartered in Petah Tikva, Israel.

How the Company Makes Money

Ludan generates revenue primarily through contracts for engineering and consulting services, which are often project-based and can vary in duration and complexity. The company also earns money by providing proprietary software solutions that enhance operational efficiency for its clients, leading to recurring revenue through licensing or subscription models. Additionally, Ludan may engage in partnerships with other firms in the energy and technology sectors, leveraging collaborative projects to expand its market reach and create new revenue opportunities. Key revenue streams include project management fees, software licensing fees, and potential government contracts in environmental and energy initiatives.

Ludan Financial Statement Overview

Summary

Ludan's financial performance is stable but faces challenges. The income statement shows stable profitability margins despite a decline in revenue. The balance sheet indicates improved leverage and strong return on equity, reflecting a solid financial position. However, the cash flow statement highlights significant declines in free cash flow, which could pose risks if not addressed.

Income Statement

Ludan's income statement shows mixed results. The TTM data indicates a decline in revenue by 7.08%, which is concerning. However, the company maintains a reasonable gross profit margin of 11.31% and a net profit margin of 4.26%. The EBIT and EBITDA margins are also stable at 6.86% and 12.08%, respectively, suggesting operational efficiency. Despite the revenue decline, the company has managed to keep its profitability metrics relatively stable.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved to 0.55 from previous higher levels, indicating reduced leverage. Return on equity is strong at 17.85%, showcasing effective use of equity to generate profits. The equity ratio stands at 28.01%, suggesting a balanced capital structure. Overall, the balance sheet indicates a stable financial foundation with reduced debt levels.

Cash Flow

Cash flow analysis reveals some challenges. The free cash flow has decreased by 42.72% in the TTM period, which is a significant drop. The operating cash flow to net income ratio is low at 0.09, indicating potential cash flow constraints. However, the free cash flow to net income ratio remains healthy at 0.75, suggesting that the company is still generating adequate cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	489.49M	633.46M	625.49M	575.97M	513.74M	531.67M
Gross Profit	51.73M	76.89M	66.81M	67.72M	52.65M	58.66M
EBITDA	55.73M	78.43M	45.16M	69.15M	57.32M	60.29M
Net Income	18.70M	27.50M	27.48M	27.70M	16.30M	14.52M
Balance Sheet
Total Assets	269.20M	487.36M	433.65M	389.57M	358.12M	349.71M
Cash, Cash Equivalents and Short-Term Investments	27.78M	34.67M	36.46M	45.72M	32.36M	36.94M
Total Debt	74.11M	145.18M	94.41M	85.80M	99.73M	115.69M
Total Liabilities	189.31M	344.34M	291.33M	257.92M	276.05M	278.82M
Stockholders Equity	77.48M	128.33M	128.72M	117.98M	80.75M	69.14M
Cash Flow
Free Cash Flow	31.10M	55.15M	22.90M	31.17M	39.54M	64.50M
Operating Cash Flow	37.48M	62.86M	26.11M	37.04M	48.04M	73.12M
Investing Cash Flow	-13.17M	-15.18M	-13.07M	-11.89M	-8.00M	-8.61M
Financing Cash Flow	-23.15M	-49.34M	-23.39M	-13.50M	-43.13M	-50.77M

Ludan Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1257.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:LUDN, the sentiment is Neutral. The current price of 1257 is below the 20-day moving average (MA) of 1270.25, below the 50-day MA of 1369.76, and below the 200-day MA of 1333.68, indicating a bearish trend. The MACD of -48.78 indicates Negative momentum. The RSI at 43.53 is Neutral, neither overbought nor oversold. The STOCH value of 63.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:LUDN.

Ludan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRAN	76 Outperform	557.94M	21.68	11.23%	6.92%	-2.68%	-57.38%
LUDN	66 Neutral	144.87M	7.75	―	8.27%	-21.65%	-30.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%