Lumine Group Inc (LMN) AI Stock Analysis

• Market Cap: C$5.28B
• Dividend Yield: N/A
• Average Volume (3M): 97.36K
• Price to Earnings (P/E): 37.7
• Beta (1Y): 0.95
• Revenue Growth: 21.17%
• EPS Growth: N/A
• Country: CA
• Employees: 2,300
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.14
• Shares Outstanding: 256,620,400
• 10 Day Avg. Volume: 79,946
• 30 Day Avg. Volume: 97,355
• PEG Ratio: 0.24
• Price to Book (P/B): 9.02
• Price to Sales (P/S): 9.16
• P/FCF Ratio: 54.09
• 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: C$42.00
• Price Target Upside: 104.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: C$21.50 ▲(4.52% Upside)

The score is supported by stronger TTM financial performance (profitability rebound, moderate leverage, and robust free cash flow), but is held back by very bearish technicals (price below all major DMAs and weak momentum) and a relatively high P/E with no dividend yield provided.

Positive Factors

Recurring subscription and maintenance revenue

Lumine's mix of subscription services, long-term contracts and maintenance revenue creates durable, recurring cash inflows. This business-model structure improves revenue visibility, supports steady reinvestment in R&D and infrastructure, and lowers cyclicality versus pure product sales.

Strong free cash flow and conversion

High and improving free cash flow with near‑one‑to‑one conversion of net income signals high cash quality. This supports organic investment, debt service or strategic M&A without heavy reliance on external financing, strengthening long‑term financial flexibility.

Healthy gross and net margins

Robust gross margins and positive net margins indicate pricing power and scalable software/service economics. Sustained margins allow funding of sales and R&D, enabling iterative product improvements and competitive differentiation across telecom and enterprise verticals.

Negative Factors

Historical earnings volatility and prior large losses

Episodes of large losses and swings in reported results undermine predictability of earnings and make multi‑period planning harder. This volatility raises the risk of abrupt capital needs, complicates longer‑term contracting and can limit strategic flexibility under stress.

Material balance-sheet swings and past negative equity

Prior negative equity and material capital‑structure swings increase refinancing and creditor risk during downturns. Even with moderate current leverage, this history suggests the company may face constrained access to capital or higher funding costs when market conditions tighten.

Inconsistent operating cash flow coverage

While TTM free cash flow is strong, inconsistent operating cash flow coverage across periods indicates cash generation can be episodic. This raises the risk that near‑term investments, capex or debt servicing could strain liquidity if cash conversion weakens.

Lumine Group Inc Business Overview & Revenue Model

Company Description

Lumine Group Inc. offers communications and media software worldwide. The company was founded in 2022 and is headquartered in Mississauga, Canada.

How the Company Makes Money

Lumine Group Inc generates revenue through multiple streams, including direct sales of its technology products, subscription-based services, and long-term contracts with enterprise clients. A significant portion of its income comes from software subscriptions that provide continuous revenue, allowing for predictable cash flow. The company also earns revenue through consulting services, where it partners with businesses to implement and optimize its solutions. Strategic partnerships with telecommunications giants and system integrators further enhance its market reach and drive sales. Additionally, Lumine benefits from recurring revenue from maintenance and support services, creating a stable financial foundation.

Lumine Group Inc Financial Statement Overview

Summary

TTM fundamentals are improved with solid profitability (~45% gross margin, ~13% net margin), ~11% revenue growth, moderate leverage (~0.21x debt/equity), and strong/growing free cash flow (~22%) with good earnings-to-cash conversion (~0.98x). The main drag is historical volatility, including large losses and balance-sheet swings in 2023–2024, which raises consistency risk.

Income Statement

TTM (Trailing-Twelve-Months) results show solid profitability with ~45% gross margin and ~13% net margin alongside ~11% revenue growth. However, profitability has been volatile across the annual periods, including large losses in 2023 and a net loss in 2024, which raises questions around earnings stability despite the strong TTM rebound.

Balance Sheet

Leverage looks moderate in TTM with debt at ~0.21x equity and equity up sharply versus 2024, supporting a healthier capital structure. That said, the balance sheet has shown material swings over time (including negative equity in 2023), which points to higher historical balance-sheet volatility and warrants monitoring even with improved current positioning.

Cash Flow

Cash generation is a clear strength: TTM free cash flow is strong and growing (~22%), and free cash flow closely tracks reported profits (about 0.98x of net income), suggesting earnings are converting well into cash. The main watch-out is that operating cash flow coverage is not consistently high across the periods provided, indicating cash flow strength has not been uniform year-to-year.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	734.13M	668.37M	499.67M	255.75M	228.36M	166.37M
Gross Profit	340.25M	324.22M	233.69M	121.43M	108.26M	153.76M
EBITDA	263.77M	-102.06M	-2.72B	73.60M	68.95M	47.17M
Net Income	98.24M	-258.91M	-2.83B	27.40M	27.47M	20.31M
Balance Sheet
Total Assets	1.28B	1.29B	1.15B	392.83M	328.41M	266.96M
Cash, Cash Equivalents and Short-Term Investments	232.55M	210.98M	146.51M	67.08M	27.11M	35.14M
Total Debt	164.28M	286.50M	165.99M	25.90M	4.62M	4.81M
Total Liabilities	515.47M	609.73M	4.99B	239.05M	155.26M	119.85M
Stockholders Equity	765.05M	678.72M	-3.84B	153.78M	173.15M	147.11M
Cash Flow
Free Cash Flow	209.31M	113.22M	107.09M	33.84M	85.33M	58.85M
Operating Cash Flow	212.85M	116.15M	108.23M	34.63M	86.03M	59.47M
Investing Cash Flow	-18.21M	-148.69M	-318.38M	-115.34M	-14.18M	-10.74M
Financing Cash Flow	-150.67M	100.04M	287.12M	120.80M	-79.64M	-32.54M

Lumine Group Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LMN, the sentiment is Negative. The current price of 20.57 is below the 20-day moving average (MA) of 23.87, below the 50-day MA of 26.27, and below the 200-day MA of 39.55, indicating a bearish trend. The MACD of -1.53 indicates Positive momentum. The RSI at 22.99 is Positive, neither overbought nor oversold. The STOCH value of 8.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LMN.

Lumine Group Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSG	72 Outperform	$7.87B	37.40	10.70%	―	14.55%	15.55%
OTEX	70 Outperform	C$8.09B	12.04	12.32%	3.27%	-5.01%	13.21%
ENGH	69 Neutral	C$973.54M	13.31	12.20%	5.69%	-0.72%	-9.27%
KXS	67 Neutral	C$3.35B	71.51	8.24%	―	15.11%	75.40%
CSU	62 Neutral	C$52.62B	56.48	22.10%	0.17%	18.24%	7.72%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LMN	61 Neutral	C$5.28B	37.66	14.07%	―	21.17%	―

Lumine Group Inc Corporate Events

Lumine Group Acquires Synchronoss Technologies for $116.4 Million

Lumine Group Inc. has announced its acquisition of Synchronoss Technologies for approximately $116.4 million, marking its first acquisition of a public company. This strategic move is expected to enhance Lumine’s portfolio and provide Synchronoss with opportunities for growth and innovation in the mobile cloud storage market. The acquisition will allow Synchronoss to operate under its original brand, maintaining its market alignment, while offering enhanced capabilities to customers through Lumine’s diversified portfolio.

The most recent analyst rating on (TSE:LMN) stock is a Hold with a C$30.00 price target. To see the full list of analyst forecasts on Lumine Group Inc stock, see the TSE:LMN Stock Forecast page.