Lorne Park Capital (LPC) AI Stock Analysis

• Market Cap: C$121.06M
• Dividend Yield: 1.63%
• Average Volume (3M): 2.51K
• Price to Earnings (P/E): 37.9
• Beta (1Y): <0.01
• Revenue Growth: 21.95%
• EPS Growth: 76.74%
• Country: CA
• Employees: 7
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): <0.01
• Shares Outstanding: 54,653,576
• 10 Day Avg. Volume: 850
• 30 Day Avg. Volume: 2,513
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$2.50
• Price Target Upside: 12.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: C$2.50 ▲(12.61% Upside)

Lorne Park Capital's strong financial performance and positive corporate events, including a going private transaction, are the most significant factors contributing to the score. The technical analysis suggests potential overbought conditions, and the valuation indicates a relatively high P/E ratio, which slightly offsets the positive aspects.

Lorne Park Capital Business Overview & Revenue Model

Company Description

Lorne Park Capital Partners Inc., together with its subsidiaries, provides portfolio management services in Canada. It also operates as an insurance agent. The company serves investors, estates, trusts, endowments, foundations, individuals, and institutional clients. Lorne Park Capital Partners Inc. was founded in 2009 and is based in Oakville, Canada.

How the Company Makes Money

Lorne Park Capital makes money primarily through management fees charged for overseeing and managing clients' investment portfolios. These fees are typically calculated as a percentage of the assets under management (AUM) and provide a steady stream of revenue. Additionally, LPC may earn performance-based fees, which are contingent on achieving specific investment returns above a predetermined benchmark. The company may also generate income through advisory services and partnerships with other financial institutions, enhancing its service offerings and expanding its client base.

Lorne Park Capital Financial Statement Overview

Summary

Lorne Park Capital demonstrates strong financial health with consistent revenue and profit growth. The income statement shows high profitability with a net profit margin of 8.80% and robust revenue growth. The balance sheet is stable but indicates some leverage concerns with a debt-to-equity ratio of 0.95. Cash flows are healthy, supporting sustainability with solid cash generation from operations.

Income Statement

Lorne Park Capital shows a strong performance in the income statement with consistent revenue growth over the years. The TTM (Trailing-Twelve-Months) gross profit margin stands at 58.76% and net profit margin at 8.80%, both indicating healthy profitability. The EBIT margin is 12.86%, and the EBITDA margin is 21.98%, showcasing effective cost management. Revenue growth has been robust, particularly evident from 2024 to 2025 with a growth rate of 3.55%.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is 0.95, indicating a balanced use of leverage. The return on equity is a solid 22.61%, suggesting efficient use of equity for generating profits. However, the equity ratio of 27.87% shows a relatively low equity base compared to total assets, which could pose a risk in adverse conditions.

Cash Flow

Cash flow analysis reveals a positive trend with an increase in free cash flow of 38.65% from 2024 to 2025. The operating cash flow to net income ratio is 2.02, indicating strong cash inflows relative to net income. However, the free cash flow to net income ratio at 2.00 suggests that while cash generation is solid, it primarily stems from operations. Overall, cash flow remains robust and supportive of ongoing operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.95M	36.65M	29.40M	26.55M	25.15M	18.72M
Gross Profit	22.31M	12.67M	9.47M	7.67M	7.70M	3.82M
EBITDA	8.34M	8.02M	6.52M	5.66M	5.03M	2.54M
Net Income	3.34M	3.06M	1.84M	1.00M	1.23M	110.09K
Balance Sheet
Total Assets	53.03M	50.50M	51.24M	41.79M	32.09M	24.58M
Cash, Cash Equivalents and Short-Term Investments	6.86M	1.58M	3.57M	2.26M	4.52M	3.34M
Total Debt	14.02M	10.09M	10.64M	7.65M	6.89M	6.28M
Total Liabilities	21.39M	18.88M	20.71M	15.32M	12.74M	8.81M
Stockholders Equity	14.78M	14.17M	11.33M	10.59M	9.16M	7.45M
Cash Flow
Free Cash Flow	6.69M	4.82M	4.28M	5.31M	4.44M	2.53M
Operating Cash Flow	6.75M	4.92M	4.38M	5.37M	4.57M	2.54M
Investing Cash Flow	-3.11M	-3.64M	-4.03M	-6.41M	-2.09M	-2.54M
Financing Cash Flow	1.49M	-3.28M	964.06K	167.61K	-1.36M	-395.58K

Lorne Park Capital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LPC, the sentiment is Positive. The current price of 2.22 is above the 20-day moving average (MA) of 2.22, above the 50-day MA of 2.17, and above the 200-day MA of 1.58, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 71.47 is Negative, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LPC.

Lorne Park Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LPC	75 Outperform	C$121.06M	37.86	24.51%	1.63%	21.95%	76.74%
RCG	71 Outperform	$285.41M	―	-2.17%	―	6.40%	-90.40%
Sector *	65 Neutral	£5.46B	8.75	9.49%	5.11%	10.05%	-13.15%
GOAT	45 Neutral	C$2.93M	―	-275.59%	―	―	87.65%
BLGV	35 Underperform	C$19.39M	―	-9482.10%	―	25.54%	37.34%
BLR	24 Underperform	C$1.32M	―	80.58%	―	―	99.08%

Lorne Park Capital Corporate Events

Lorne Park Capital Partners Announces Shareholder Meeting for Acquisition Vote

Lorne Park Capital Partners Inc. has announced an upcoming annual and special meeting of shareholders to vote on a plan of arrangement where Sagard Private Equity Canada will acquire all outstanding shares of the company for C$2.23 per share. The board of directors unanimously recommends the arrangement, citing the superior offer and strategic fit from SPEC, which promises greater deal certainty and valuation benefits for shareholders. The arrangement is expected to be completed in the third quarter of 2025, pending necessary approvals and conditions.

Lorne Park Capital Reports Strong Revenue Growth and Asset Expansion in 2025

Lorne Park Capital Partners Inc. reported a revenue increase of 13% for the first half of 2025, reaching $19.2 million, and a 10.5% increase for the second quarter, totaling $9.6 million. The company also saw its assets under management grow to $3.92 billion by June 30, 2025, driven by new clients and market appreciation. Despite a net earnings loss in Q2 2025, the company noted an improvement in adjusted EBITDA, reflecting a 17.1% increase for the six-month period. These financial results highlight the company’s ongoing growth and strategic positioning in the investment management industry.

Lorne Park Capital Partners Set for Acquisition by Sagard Private Equity

Lorne Park Capital Partners Inc. has announced the distribution of materials for its upcoming annual and special meeting of shareholders, where key decisions such as the election of directors and approval of an equity incentive plan will be made. A significant agenda item is the approval of a transaction where Sagard Private Equity Canada will acquire all outstanding shares of Lorne Park, valuing the company at approximately C$126.8 million. This transaction, subject to shareholder and court approval, is expected to conclude in the third quarter of 2025, potentially impacting the company’s market positioning and stakeholder interests.

Lorne Park Capital Partners Declares Quarterly Dividend

Lorne Park Capital Partners Inc. announced a quarterly cash dividend of $0.01 per common share, payable on July 31, 2025, to shareholders of record as of July 17, 2025. This decision reflects the company’s ongoing commitment to delivering value to its shareholders, with future dividends subject to quarterly reviews based on cash flows and macroeconomic conditions.

Lorne Park Capital Partners Announces Going Private Transaction with Sagard

Lorne Park Capital Partners has announced a going private transaction, with Sagard Private Equity Canada acquiring all outstanding shares, valuing the company at approximately $126.8 million. Shareholders will receive a cash premium of $2.23 per share, representing a significant increase over recent trading prices. The transaction is expected to enhance Lorne Park’s growth strategy and service capabilities, with the current management team, led by CEO Robert Sewell, continuing to guide the company. The deal is supported by the company’s board and aims to provide liquidity to shareholders while aligning with Lorne Park’s long-term vision.

Lorne Park Capital Partners Strengthens Leadership with New VP Appointment

Lorne Park Capital Partners Inc. announced the appointment of Phillip Ackers as Vice President of National Sales at Bellwether Investment Management Inc. With over 35 years of experience in the financial services industry, Ackers is expected to enhance the company’s strategic growth objectives. This appointment is anticipated to strengthen Bellwether’s market position in providing tailored investment solutions and support its focus on North American Dividend Growth investing.