Leishen Energy Holding Company Limited (LSE) AI Stock Analysis

• Market Cap: $74.40M
• Dividend Yield: N/A
• Average Volume (3M): 8.89K
• Price to Earnings (P/E): 33.1
• Beta (1Y): 0.65
• Revenue Growth: -31.47%
• EPS Growth: -82.57%
• Country: US
• Employees: 177
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.48
• Shares Outstanding: 17,025,000
• 10 Day Avg. Volume: 17,163
• 30 Day Avg. Volume: 8,890
• PEG Ratio: -0.33
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 5.86
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $6.00 ▲(37.30% Upside)

Leishen Energy's overall stock score is primarily supported by its strong financial performance, particularly in cash flow management and balance sheet strength. However, the technical analysis presents mixed signals, and the high P/E ratio indicates potential overvaluation, which tempers the overall score.

Positive Factors

Cash Flow Management

Strong cash flow management ensures Leishen Energy can fund future investments and debt repayments, supporting long-term growth and stability.

Balance Sheet Health

A low debt-to-equity ratio indicates low financial leverage, reducing risk and enhancing financial stability, which is crucial for long-term resilience.

Operational Efficiency

Efficient cost management reflected in a solid gross profit margin supports sustainable profitability and competitive positioning in the market.

Negative Factors

Revenue Decline

Declining revenue growth can hinder the company's ability to expand and compete, potentially impacting long-term market position and profitability.

Profit Margin Decline

A declining net profit margin suggests reduced profitability, which can affect the company's ability to reinvest in growth and maintain competitive advantages.

Earnings Growth Challenges

Significant decline in EPS growth indicates challenges in maintaining earnings momentum, which could impact investor confidence and future valuation.

Leishen Energy Holding Company Limited Business Overview & Revenue Model

Company Description

Leishen Energy Holding Co., Ltd., through its subsidiaries, provides clean-energy equipment and integrated solutions for the oil and gas industry in the People's Republic of China, Central Asia, and Southeast Asia. It engages in the research, development, manufacture, and sale of reciprocating compressor sets, expansion machines, expansion machine residual pressure generation equipment, pre-splitting devices, electromagnetic heating devices, flexible composite pipes, skidding equipment, wellhead safety control systems, online sampling and analysis systems, and other equipment for the oil and gas field in the petroleum and chemical industry. The company also rents compressors to pressurize oil wells; and provides technical service and repair of related equipment. In addition, it offers technical engineering services, such as equipment installation, maintenance, operation, and on-site troubleshooting to reduce costs and improve the efficiency of oil and gas production, transportation, and delivery processes. Further, the company provides natural gas trading and logistics, distributed energy development, planning and investment, new energy fuel industries operation, and urban gas transmission and distribution construction management services, as well as offers traditional fuel replacement solutions for industrial users and industrial oilfields. Additionally, it offers oilfield digitalization and integration services; and purchases and sells oil and gas professional equipment and instruments. The company was founded in 2007 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Leishen Energy Holding Company Limited generates revenue through multiple streams, primarily by providing advanced energy solutions to both residential and commercial clients. Key revenue streams include the sale of renewable energy products such as solar panels and wind turbines, as well as energy storage systems that help clients manage and optimize their energy use. Furthermore, LSE offers consultancy and energy management services, which help clients reduce energy costs and improve efficiency. The company may also benefit from strategic partnerships with government entities and other corporations aiming to meet sustainability goals. These partnerships can lead to large-scale projects and long-term contracts, providing a stable revenue base. Additionally, incentives and subsidies for renewable energy projects in various regions can enhance LSE's profitability.

Leishen Energy Holding Company Limited Financial Statement Overview

Summary

Leishen Energy Holding Company Limited exhibits a strong financial profile with robust cash flow generation and a solid balance sheet. Despite challenges in the income statement with declining revenue and net profit margins, the company maintains operational efficiency and a low-risk financial structure. The overall financial health is supported by excellent cash flow management, positioning the company well for future growth and stability.

Income Statement

Leishen Energy Holding Company Limited has shown a solid performance in its income statement. The gross profit margin stands at 23.2% for 2024, indicating efficient cost management. However, the net profit margin decreased to 11.7% from 16.2% in 2023, suggesting a decline in profitability. The revenue growth rate is negative at -5.5%, which is a concern. Despite this, the company maintains a healthy EBIT margin of 10.9% and an EBITDA margin of 12.6%, reflecting strong operational efficiency.

Balance Sheet

The balance sheet of Leishen Energy is robust, with a low debt-to-equity ratio of 0.05, indicating low financial leverage and reduced risk. The return on equity (ROE) is 20.3%, showcasing effective utilization of shareholder funds. The equity ratio is 57.1%, highlighting a strong equity base relative to total assets. Overall, the company maintains a stable financial position with a solid equity foundation.

Cash Flow

Leishen Energy demonstrates strong cash flow management. The free cash flow growth rate is an impressive 320.7%, driven by substantial improvements in operating cash flow. The operating cash flow to net income ratio is 1.86, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio is 1.77, further emphasizing the company's ability to generate cash beyond its earnings. These metrics reflect a healthy cash flow position, supporting future investments and debt repayments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	57.39M	69.07M	73.08M	46.72M	31.26M
Gross Profit	10.05M	16.03M	18.38M	13.54M	9.02M
EBITDA	1.53M	8.75M	12.85M	8.07M	6.01M
Net Income	2.25M	8.10M	11.86M	5.72M	4.66M
Balance Sheet
Total Assets	72.67M	69.63M	65.46M	46.49M	43.87M
Cash, Cash Equivalents and Short-Term Investments	29.73M	23.66M	11.80M	8.53M	15.68M
Total Debt	4.50M	1.85M	1.85M	1.54M	101.58K
Total Liabilities	29.30M	29.18M	33.70M	16.84M	17.84M
Stockholders Equity	43.07M	39.79M	30.81M	28.59M	25.52M
Cash Flow
Free Cash Flow	7.61M	14.35M	3.41M	-7.24M	11.58M
Operating Cash Flow	8.02M	15.07M	4.39M	-4.39M	12.59M
Investing Cash Flow	-4.81M	-12.14M	-6.02M	1.21M	-7.92M
Financing Cash Flow	7.77M	-344.72K	-19.55K	1.72M	153.71K

Leishen Energy Holding Company Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LSE, the sentiment is Negative. The current price of 4.37 is below the 20-day moving average (MA) of 4.70, below the 50-day MA of 5.08, and below the 200-day MA of 5.42, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 34.00 is Neutral, neither overbought nor oversold. The STOCH value of 36.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LSE.

Leishen Energy Holding Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCSM	71 Outperform	$102.68M	8.90	11.89%	―	16.61%	-72.29%
LSE	68 Neutral	$74.40M	33.11	5.65%	―	-31.47%	-82.57%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
DTI	53 Neutral	$97.15M	-15.44	-5.18%	―	7.46%	-165.76%
DWSN	44 Neutral	$52.78M	-15.90	-19.81%	―	-22.31%	39.11%
KLXE	44 Neutral	$28.18M	-0.37	―	―	-12.57%	-45.75%
NINE	39 Underperform	$14.41M	-0.33	―	―	2.59%	16.02%

Leishen Energy Holding Company Limited Corporate Events

Leishen Energy Reports Revenue Decline Amidst IPO Success

Leishen Energy Holding Co., Ltd. reported a significant decrease in revenues for the six months ended March 31, 2025, compared to the same period in 2024, with a 29.3% decline. The company’s gross profit also fell by 54.8%, attributed to increased costs of revenues and operating expenses. Despite these challenges, Leishen successfully raised $6.1 million through its initial public offering in December 2024, which could support future growth and operational strategies.

The most recent analyst rating on (LSE) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Leishen Energy Holding Company Limited stock, see the LSE Stock Forecast page.