Lucas GC Limited (LGCL) AI Stock Analysis

• Market Cap: $49.19M
• Dividend Yield: N/A
• Average Volume (3M): 89.27K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.70
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 319
• Sector: General
• Sector Strength: N/A
• Industry: Software - Application
• EPS (TTM): 0.07
• Shares Outstanding: 79,467,060
• 10 Day Avg. Volume: 147,192
• 30 Day Avg. Volume: 89,266
• PEG Ratio: -29.92
• Price to Book (P/B): 118.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -462.40
• 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

• Rating: 66 Neutral
• Price Target: $0.50 ▼(-19.35%Downside)

The overall stock score of 66 for Lucas GC Limited reflects its strong revenue growth and robust equity position. The low P/E ratio indicates potential undervaluation, which offsets concerns about profitability margins and cash flow management. The technical indicators suggest caution due to overbought conditions, but the company's long-term growth prospects remain positive.

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 demonstrated significant revenue growth and a strong equity position, which are positives for the company's expansion plans. However, the profitability margins and cash flow management pose challenges. The company's low leverage and high return on equity are strengths, but operational efficiency needs improvement. Maintaining positive free cash flow will be crucial for future stability.

Income Statement

The company has shown strong revenue growth over the years, growing from $33.35M in 2020 to $1.47B in 2023, indicating significant scaling. However, the gross and net profit margins have seen volatility, with the latest annual gross profit margin at approximately 28.4% and net profit margin at 5.3%. Despite the growth, the EBIT and EBITDA margins are relatively low, with the latest EBIT margin at 1.9% and EBITDA margin at 2.5%, suggesting limited operational efficiency.

Balance Sheet

Lucas GC Limited has a strong equity base with a debt-to-equity ratio of approximately 0.26 in 2023, indicating low leverage. The return on equity has improved over the years, with the latest ROE at 40%, showcasing effective use of equity. The equity ratio is also healthy at around 66.5%, highlighting a strong capital structure. However, total liabilities have increased, which could pose future risks if not managed properly.

Cash Flow

The company's free cash flow has been negative in recent years, with a significant drop from -$48.51M in 2023 to -$56.98M in 2024, highlighting cash management challenges. The operating cash flow to net income ratio was negative in 2023, improving to a positive 0.51 in 2024, indicating better cash conversion. However, the consistent negative free cash flow is concerning for long-term sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.06B	1.47B	113.84M	101.13M	33.35M
	Gross Profit
357.40M	418.55M	31.96M	27.77M	8.38M
	EBIT
28.01M	67.72M	4.70M	5.75M	418.70K
	EBITDA
36.86M	72.02M	34.97M	38.64M	3.23M
	Net Income Common Stockholders
39.79M	77.67M	5.37M	6.13M	665.87K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
33.18M	30.12M	7.09M	11.63M	1.69M
	Total Assets
403.25M	291.82M	34.70M	35.48M	9.86M
	Total Debt
68.03M	39.47M	970.84K	0.00	0.00
	Net Debt
37.65M	9.34M	-6.12M	-6.91M	-742.22K
	Total Liabilities
137.67M	95.23M	17.76M	22.74M	7.26M
	Stockholders Equity
262.83M	194.14M	16.67M	12.70M	2.60M
Cash Flow		Free Cash Flow
-56.98M	-48.51M	-4.28M	5.66M	-766.71K
	Operating Cash Flow
20.19M	-36.41M	-2.25M	9.40M	352.20K
	Investing Cash Flow
-79.95M	-12.10M	2.50M	-7.42M	-1.78M
	Financing Cash Flow
60.75M	29.42M	507.60K	4.11M	1.84M

Lucas GC Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGCL, the sentiment is Positive. The current price of 0.62 is above the 20-day moving average (MA) of 0.52, above the 50-day MA of 0.46, and below the 200-day MA of 0.76, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 63.41 is Neutral, neither overbought nor oversold. The STOCH value of 63.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LGCL.

Lucas GC Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTWK	68 Neutral	$33.72M	139.23	0.75%	―	9.18%	―
LGCL	66 Neutral	$49.19M	8.46	40.01%	―	―	―
Sector *	57 Neutral	$4.90B	18.92	-17.01%	7.26%	13.61%	-24.47%
AWRE	53 Neutral	$35.86M	―	-16.05%	―	-9.72%	25.68%
HKIT	52 Neutral	$40.43M	32.63	-2.82%	―	-36.35%	-153.77%
MTC	41 Neutral	$23.49M	―	40.01%	―	―	―