Lucas GC Limited (LGCL) AI Stock Analysis

• Market Cap: $32.67M
• Dividend Yield: N/A
• Average Volume (3M): 178.42K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 1.00
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 361
• Sector: General
• Sector Strength: N/A
• Industry: Software - Application
• EPS (TTM): 0.07
• Shares Outstanding: 79,563,300
• 10 Day Avg. Volume: 72,678
• 30 Day Avg. Volume: 178,418
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 8.28
• Price to Cash Flow (P/CF): N/A
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Lucas GC Limited's overall score reflects a combination of strong revenue growth and a robust equity position, counterbalanced by low profitability margins and negative free cash flow. The stock's bearish technical indicators and undervaluation point to potential risks and opportunities. The absence of a dividend yield and limited income generation capacity may be concerns for prospective investors.

Lucas GC Limited Business Overview & Revenue Model

Company Description

Lucas GC Limited (LGCL) is a dynamic company operating in the construction and infrastructure sectors. The company specializes in delivering comprehensive construction solutions, including project management, design, and execution of large-scale infrastructure projects. With a commitment to quality and innovation, LGCL serves a diverse clientele, ranging from government bodies to private enterprises, ensuring sustainable development and excellence in all its projects.

How the Company Makes Money

LGCL generates revenue through a multi-faceted business model centered around construction and infrastructure development contracts. The company secures projects through competitive bidding and direct negotiations, often forming strategic partnerships with engineering firms and subcontractors to enhance its service offerings. Key revenue streams include fees from project management, design services, and construction execution. By leveraging its expertise and reputation, LGCL also benefits from long-term contracts with government agencies and private sector clients, ensuring a steady income flow. Additionally, the company may engage in joint ventures or partnerships to expand its market reach and diversify its project portfolio.

Lucas GC Limited Financial Statement Overview

Summary

Lucas GC Limited has shown remarkable revenue growth and profitability, reflected in its income statement, despite some operational inefficiencies. The balance sheet displays a strong equity position and low leverage, signifying financial health. However, cash flow management requires attention, as negative operating cash flow poses a risk to liquidity. Overall, the company is on a solid growth trajectory, but enhancing operational efficiency and cash flow generation will be key to sustaining its financial health.

Income Statement

Lucas GC Limited exhibits a strong income statement with a significant increase in total revenue from $113.84 million in 2022 to $1.47 billion in 2023, indicating robust growth. The gross profit margin is healthy at 28.39%, and the net profit margin stands at 5.27%, showing profitability. However, the EBIT margin is relatively low at 4.59%, suggesting some inefficiencies in operational management. The company has demonstrated impressive revenue growth, but there is room for improvement in operational efficiency.

Balance Sheet

The balance sheet of Lucas GC Limited shows a solid equity base with a debt-to-equity ratio of 0.20, indicating low leverage and a conservative financial structure. The return on equity is strong at 40.01%, reflecting good profitability relative to shareholder investment. However, the equity ratio is relatively high at 66.54%, which suggests a stable financial position and a lower risk of insolvency. Overall, the balance sheet reflects financial stability but highlights potential underutilization of debt for growth.

Cash Flow

The cash flow statement reveals challenges, as the company has experienced a negative operating cash flow of $36.41 million in 2023, indicating potential liquidity issues. Although the free cash flow has declined, the operating cash flow to net income ratio is -0.47, which may point to inefficiencies in converting revenue to cash. The free cash flow to net income ratio is negative, reflecting the need for better cash management. While the company has financing capabilities, improving cash flow from operations is crucial.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.26B	1.47B	113.84M	101.13M	33.35M
	Gross Profit
388.94M	418.55M	31.96M	27.77M	8.38M
	EBIT
69.94M	67.72M	4.70M	5.75M	418.70K
	EBITDA
74.20M	72.02M	34.97M	38.64M	3.23M
	Net Income Common Stockholders
77.90M	77.67M	5.37M	6.13M	665.87K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.63M	30.12M	7.09M	11.63M	1.69M
	Total Assets
35.48M	291.82M	34.70M	35.48M	9.86M
	Total Debt
0.00	39.47M	970.84K	0.00	0.00
	Net Debt
-6.91M	9.34M	-6.12M	-6.91M	-742.22K
	Total Liabilities
22.74M	95.23M	17.76M	22.74M	7.26M
	Stockholders Equity
12.70M	194.14M	16.67M	12.70M	2.60M
Cash Flow		Free Cash Flow
-34.01M	-48.51M	-4.28M	5.66M	-766.71K
	Operating Cash Flow
-21.91M	-36.41M	-2.25M	9.40M	352.20K
	Investing Cash Flow
-12.10M	-12.10M	2.50M	-7.42M	-1.78M
	Financing Cash Flow
11.68M	29.42M	507.60K	4.11M	1.84M

Lucas GC Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGCL, the sentiment is Negative. The current price of 0.33 is below the 20-day moving average (MA) of 0.52, below the 50-day MA of 0.54, and below the 200-day MA of 1.11, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 34.95 is Neutral, neither overbought nor oversold. The STOCH value of 14.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LGCL.

Lucas GC Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZO	73 Outperform	$58.19B	23.47	-14.95%	―	4.72%	4.69%
ORLY	70 Outperform	$76.35B	32.34	-174.09%	―	5.67%	5.40%
GPC	68 Neutral	$15.31B	17.05	20.69%	3.65%	1.71%	-30.78%
KMX	62 Neutral	$11.34B	24.93	7.52%	―	-2.46%	-6.19%
LGCL	58 Neutral	$32.67M	4.65	40.01%	―	―	―
Sector *	54 Neutral	$3.63B	-16.30	-14.99%	6.50%	25.52%	-80.16%
AAP	45 Neutral	$2.09B	59.62	-23.45%	3.08%	-9.34%	-852.37%