LendLease Group (LLESY) AI Stock Analysis

• Market Cap: $2.34B
• Dividend Yield: 4.16%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.58
• Revenue Growth: -17.89%
• EPS Growth: N/A
• Country: US
• Employees: 12,000
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 0.25
• Shares Outstanding: 690,647,900
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.14
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.49
• P/FCF Ratio: -4.74
• Enterprise Value/Market Cap: 3.05
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 17.67
• Enterprise Value/Ebitda: 142.75
• 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: 52 Neutral
• Price Target: $3.50 ▲(3.55% Upside)

LendLease Group's overall stock score is primarily influenced by its financial performance challenges, including declining revenues and negative cash flows. The technical analysis shows a lack of strong momentum, and while the valuation offers some attractiveness with a reasonable P/E ratio and a good dividend yield, it is not enough to significantly boost the score. Strategic improvements are necessary to enhance the company's financial health and investor appeal.

Positive Factors

Sustainable Urban Projects

LendLease's commitment to sustainable urban projects aligns with global trends towards eco-friendly development, enhancing its long-term market position and appeal to environmentally conscious clients and investors.

Diversified Revenue Model

A diversified revenue model across development, construction, and investment management provides LendLease with multiple income streams, reducing dependency on any single market and enhancing resilience against sector-specific downturns.

Strategic Partnerships

Strategic partnerships with governments and private entities ensure a steady project pipeline, enhancing LendLease's ability to secure large-scale projects and maintain a competitive edge in the infrastructure sector.

Negative Factors

Declining Revenue

A declining revenue trend indicates potential challenges in market demand or project execution, which could impact long-term growth prospects and necessitate strategic adjustments to reverse the trend.

Negative Cash Flows

Negative cash flows suggest operational inefficiencies and potential liquidity issues, which could hinder LendLease's ability to fund new projects and meet financial obligations, impacting long-term sustainability.

Low Profit Margins

Low profit margins indicate limited pricing power and cost management challenges, which could constrain profitability and reduce the company's ability to reinvest in growth opportunities over the long term.

LendLease Group Business Overview & Revenue Model

Company Description

Lendlease Group operates as an integrated real estate and investment company in Australia, Asia, Europe, and the Americas. It operates through Development, Construction, and Investments segments. The Development segment develops inner-city mixed-use developments, apartments, communities, retirement, retail, commercial assets, and social and economic infrastructure. The Construction segment provides project management, design, and construction services primarily in the commercial, residential, mixed use, defense, and social infrastructure sectors. The Investments segment owns and/or manages investments, including property and infrastructure co-investments, retirement livings, and the U.S. military housings. Lendlease Group was founded in 1958 and is headquartered in Barangaroo, Australia.

How the Company Makes Money

LendLease generates revenue through a variety of channels, primarily by undertaking large-scale construction and development projects. The company earns money from project management fees, construction contracts, and sales of residential properties. Additionally, LendLease invests in its own developments, allowing it to benefit from long-term rental income and capital appreciation. Key revenue streams include residential and commercial developments, as well as infrastructure projects, where they often take on both equity and debt financing roles. Strategic partnerships with governmental agencies and private sector clients further enhance their revenue potential, as they secure contracts for major infrastructure projects. Their focus on sustainability and innovative design also allows them to tap into emerging markets and trends, contributing to their overall earnings.

LendLease Group Financial Statement Overview

Summary

LendLease Group faces several financial challenges, including declining revenues and negative cash flows. While the company maintains a stable balance sheet with moderate leverage, its profitability and cash flow generation are areas of concern. Strategic improvements are necessary to enhance financial performance.

Income Statement

The income statement shows a declining revenue trend with a negative revenue growth rate of -15.34% in the latest year. Gross profit margin is low at 5.31%, and the net profit margin is also modest at 2.96%. The EBIT margin is negative, indicating operational challenges. Despite these issues, the company managed to achieve a positive net income, which is a positive sign.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.79, indicating manageable leverage. Return on equity is low at 4.40%, suggesting limited profitability from shareholders' equity. The equity ratio stands at a healthy level, showing a stable financial structure.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating and free cash flows. The free cash flow growth rate is highly negative, and the operating cash flow to net income ratio is also negative, indicating cash flow issues. However, the free cash flow to net income ratio is slightly above 1, suggesting some alignment between cash flow and earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.60B	7.60B	9.22B	10.40B	8.97B	9.77B
Gross Profit	404.00M	404.00M	776.00M	587.00M	682.00M	639.00M
EBITDA	50.00M	739.00M	-974.00M	63.00M	87.00M	623.00M
Net Income	225.00M	225.00M	-1.50B	-232.00M	-99.00M	222.00M
Balance Sheet
Total Assets	14.13B	14.13B	16.77B	18.99B	17.81B	17.69B
Cash, Cash Equivalents and Short-Term Investments	621.00M	621.00M	1.00B	900.00M	1.30B	1.66B
Total Debt	4.05B	4.05B	4.51B	3.67B	2.77B	2.83B
Total Liabilities	8.99B	8.99B	11.89B	12.35B	10.84B	10.74B
Stockholders Equity	5.11B	5.11B	4.84B	6.62B	6.94B	6.93B
Cash Flow
Free Cash Flow	-826.00M	-783.00M	-118.00M	-568.00M	-920.00M	347.00M
Operating Cash Flow	-820.00M	-775.00M	-55.00M	-486.00M	-835.00M	468.00M
Investing Cash Flow	928.00M	928.00M	-552.00M	-758.00M	554.00M	-214.00M
Financing Cash Flow	-532.00M	-532.00M	723.00M	723.00M	-108.00M	-148.00M

LendLease Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.38
• 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 LLESY, the sentiment is Negative. The current price of 3.38 is below the 20-day moving average (MA) of 3.41, below the 50-day MA of 3.46, and below the 200-day MA of 3.49, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 45.73 is Neutral, neither overbought nor oversold. The STOCH value of 6.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LLESY.

LendLease Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMR	70 Neutral	$519.39M	15.80	7.39%	11.98%	-21.98%	-25.08%
HHH	68 Neutral	$4.89B	16.03	8.79%	―	59.27%	240.63%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
PK	56 Neutral	$2.23B	-148.47	-0.36%	13.10%	-3.57%	-104.55%
EXPI	54 Neutral	$1.53B	-75.91	-8.09%	2.09%	5.08%	41.21%
LLESY	52 Neutral	$2.34B	15.92	4.37%	4.16%	-17.89%	―
GPMT	46 Neutral	$108.09M	-1.57	-9.11%	7.97%	-28.13%	62.49%