Lumine Group Inc (LMN) AI Stock Analysis

• Market Cap: C$7.80B
• Dividend Yield: N/A
• Average Volume (3M): 97.36K
• Price to Earnings (P/E): 56.6
• Beta (1Y): 1.00
• Revenue Growth: 21.17%
• EPS Growth: N/A
• Country: CA
• Employees: 2,300
• Sector: Services
• Sector Strength: N/A
• 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$49.00
• Price Target Upside: 68.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: C$30.00 ▲(3.45% Upside)

Lumine Group Inc.'s stock score is driven by strong financial performance, with notable growth and profitability improvements. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

The substantial revenue growth indicates successful market expansion and product adoption, enhancing the company's competitive position and long-term prospects.

Cash Generation

Strong cash generation supports liquidity and provides flexibility for investments and debt servicing, ensuring financial stability and growth capacity.

Balance Sheet Health

A strong capital base and prudent leverage levels enhance financial resilience, supporting long-term strategic initiatives and risk management.

Negative Factors

Profitability Volatility

Profitability volatility suggests operational challenges that could impact financial performance consistency, requiring effective management strategies.

Historical Financial Volatility

Past financial instability could pose risks if conditions deteriorate, highlighting the need for ongoing financial discipline and risk mitigation.

Investment Cash Flow Variability

Variable investment cash flows may affect strategic planning and capital allocation, potentially impacting long-term growth and operational efficiency.

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

Lumine Group Inc. demonstrates substantial growth and improving profitability, with strong cash generation and stable balance sheet metrics. The company's recent turnaround in net income and positive cash flows are notable strengths. However, historical volatility in profitability and the balance sheet indicates potential risks that need ongoing management.

Income Statement

Lumine Group Inc. shows strong revenue growth, with a significant increase from $166.4M in 2020 to $705.9M in TTM (Trailing-Twelve-Months) 2025. The gross profit margin remains robust at approximately 49.2% in TTM 2025, indicating efficient cost management. Net profit margin improved to 9.4% in TTM 2025 from a negative position in previous years, reflecting a turnaround in profitability. However, the volatility in EBIT and EBITDA margins, especially the negative EBITDA in recent years, suggests the company is still navigating operational challenges.

Balance Sheet

The balance sheet is stable, with an equity ratio of 53.1% in TTM 2025, indicating a strong capital base. The debt-to-equity ratio is manageable at 0.41, reflecting prudent leverage levels. Return on equity has improved significantly, turning positive in TTM 2025, indicating effective use of shareholder capital. However, the history of negative equity and liabilities exceeding assets in prior years presents a potential risk if financial conditions deteriorate.

Cash Flow

Cash flow metrics are strong, with consistent positive operating cash flow and free cash flow over the periods, supporting the company's liquidity. The operating cash flow to net income ratio is favorable at 1.83 in TTM 2025, suggesting strong cash generation relative to net income. Free cash flow growth has been steady, providing the company with flexibility for investments and debt servicing. However, fluctuations in investing cash flows indicate variability in capital expenditures and investment activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	727.09M	668.37M	499.67M	255.75M	228.36M	166.37M
Gross Profit	368.81M	324.22M	233.69M	121.43M	108.26M	153.76M
EBITDA	257.31M	-102.06M	-2.72B	73.60M	68.95M	47.17M
Net Income	92.00M	-258.91M	-2.83B	27.40M	27.47M	20.31M
Balance Sheet
Total Assets	1.33B	1.29B	1.15B	392.83M	328.41M	266.96M
Cash, Cash Equivalents and Short-Term Investments	289.67M	210.98M	146.51M	67.08M	27.11M	35.14M
Total Debt	251.65M	286.50M	165.99M	25.90M	4.62M	4.81M
Total Liabilities	591.43M	609.73M	4.99B	239.05M	155.26M	119.85M
Stockholders Equity	743.28M	678.72M	-3.84B	153.78M	173.15M	147.11M
Cash Flow
Free Cash Flow	185.61M	113.22M	107.09M	33.84M	85.33M	58.85M
Operating Cash Flow	189.62M	116.15M	108.23M	34.63M	86.03M	59.47M
Investing Cash Flow	-3.30M	-148.69M	-318.38M	-115.34M	-14.18M	-10.74M
Financing Cash Flow	-72.69M	100.04M	287.12M	120.80M	-79.64M	-32.54M

Lumine Group Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 29 is above the 20-day moving average (MA) of 27.56, below the 50-day MA of 33.62, and below the 200-day MA of 42.50, indicating a neutral trend. The MACD of -1.13 indicates Negative momentum. The RSI at 46.70 is Neutral, neither overbought nor oversold. The STOCH value of 68.84 is Neutral, 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
OTEX	72 Outperform	$11.90B	17.70	12.32%	2.76%	-5.01%	13.21%
KXS	71 Outperform	C$4.72B	136.84	8.24%	―	15.11%	75.40%
ENGH	71 Outperform	$1.09B	14.64	12.56%	5.77%	0.03%	-10.21%
DSG	68 Neutral	$9.86B	48.56	10.54%	―	15.63%	18.47%
LMN	60 Neutral	C$7.80B	56.63	14.07%	―	21.17%	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
LSPD	52 Neutral	C$2.15B	-2.48	-37.01%	―	17.23%	-435.45%