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LPA Group PLC (GB:LPA)
LSE:LPA
UK Market

LPA Group plc (LPA) AI Stock Analysis

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LPA Group plc

(LSE:LPA)

61Neutral
LPA Group plc's overall score is driven by strong corporate events showcasing growth potential and management confidence. However, financial performance challenges, particularly in profitability and cash flow management, and a weak valuation due to a negative P/E ratio, weigh down the score. Technical analysis shows a neutral trend with no immediate bullish or bearish signals.

LPA Group plc (LPA) vs. S&P 500 (SPY)

LPA Group plc Business Overview & Revenue Model

Company DescriptionLPA Group plc (LPA) is a United Kingdom-based company that operates in the engineering and manufacturing sectors. It specializes in the design, manufacture, and supply of lighting, electronic, and electro-mechanical systems. These products primarily serve the rail, aerospace, and defense industries, providing innovative solutions that enhance performance and reliability.
How the Company Makes MoneyLPA Group plc generates revenue through the sale of its engineered lighting and electronic solutions. Its key revenue streams include the production and distribution of LED lighting systems, electrical connectors, and other electro-mechanical components. The company earns money by securing contracts with major transportation entities and aerospace manufacturers, often through long-term agreements. Additionally, LPA Group benefits from partnerships and collaborations with key players in the rail and aerospace industries, which help to drive consistent demand for its products. Maintenance, repair, and overhaul services also contribute to its earnings, as LPA provides ongoing support to ensure the longevity and efficiency of its systems.

LPA Group plc Financial Statement Overview

Summary
LPA Group plc shows steady revenue growth but faces challenges in profitability and cash flow management. The balance sheet is stable but increasing debt requires careful management.
Income Statement
55
Neutral
LPA Group plc shows a mixed performance in its income statement. The gross profit margin has improved slightly in the latest year, but the company has been experiencing negative EBIT, indicating operational challenges. Revenue growth is steady, but the net profit margin turned negative, highlighting profitability issues.
Balance Sheet
65
Positive
The company maintains a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. Stockholders' equity has increased, showing a stable growth in assets. However, the increase in total debt over the years needs careful management to prevent potential leverage risks.
Cash Flow
50
Neutral
Cash flow analysis shows fluctuations with a decrease in free cash flow. Operating cash flow to net income ratio suggests cash generation challenges relative to reported profits. The free cash flow growth rate has been inconsistent, indicating potential cash management issues.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
24.14M23.55M21.71M19.32M18.27M20.71M
Gross Profit
5.46M5.48M4.91M4.40M3.71M4.69M
EBIT
46.00K-626.00K-33.00K-168.00K-301.00K616.00K
EBITDA
2.08M685.00K1.79M1.96M567.00K1.49M
Net Income Common Stockholders
1.00M-325.00K859.00K1.19M-34.00K595.00K
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.46M715.00K1.20M2.20M1.36M845.00K
Total Assets
25.05M25.60M23.03M22.06M22.01M20.62M
Total Debt
2.84M2.83M2.41M2.72M2.99M3.49M
Net Debt
1.39M2.12M1.20M521.00K1.63M2.65M
Total Liabilities
8.89M9.37M7.31M7.30M7.89M8.07M
Stockholders Equity
16.15M16.23M15.71M14.76M14.11M12.55M
Cash FlowFree Cash Flow
672.00K108.00K89.00K-174.00K906.00K501.00K
Operating Cash Flow
999.00K1.25M285.00K77.00K1.19M773.00K
Investing Cash Flow
-1.15M-1.65M-566.00K1.42M-283.00K-266.00K
Financing Cash Flow
162.00K-92.00K-716.00K-651.00K-393.00K-551.00K

LPA Group plc Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price56.50
Price Trends
50DMA
57.08
Negative
100DMA
58.51
Negative
200DMA
60.75
Negative
Market Momentum
MACD
0.03
Negative
RSI
52.26
Neutral
STOCH
64.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LPA, the sentiment is Neutral. The current price of 56.5 is above the 20-day moving average (MA) of 55.86, below the 50-day MA of 57.08, and below the 200-day MA of 60.75, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 52.26 is Neutral, neither overbought nor oversold. The STOCH value of 64.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:LPA.

LPA Group plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
CRCRH
82
Outperform
£63.43B19.4416.07%1.85%1.78%15.53%
77
Outperform
£345.91M9.1935.97%4.19%22.39%179.53%
62
Neutral
$8.16B12.850.64%3.04%3.83%-15.83%
GBLPA
61
Neutral
£7.47M7.61-2.03%1.77%8.45%-137.73%
55
Neutral
£125.13M-6.03%3.92%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:LPA
LPA Group plc
56.50
-20.00
-26.14%
GB:GFRD
Galliford Try
353.00
108.23
44.22%
GB:CARR
Carr's Group plc
130.25
9.98
8.30%
CRH
CRH plc
94.63
12.08
14.63%

LPA Group plc Corporate Events

Other
LPA Group CEO Increases Stake with Share Purchase
Positive
Mar 6, 2025

LPA Group plc announced that its CEO, Philo Daniel-Tran, has purchased 41,000 ordinary shares of the company at 59 pence per share, increasing his stake to approximately 0.30% of the company’s issued share capital. This transaction may reflect confidence in the company’s future prospects and could positively influence stakeholder perceptions.

Product-Related AnnouncementsBusiness Operations and Strategy
LPA Group Secures Major Contract for Electrostar Fleet
Positive
Mar 5, 2025

LPA Group plc has secured a £1.72 million contract to supply rail inter-car jumpers for the Electrostar fleet replacement program, with deliveries starting immediately and continuing until June 2026. This contract win underscores LPA’s strategic focus on the rail aftercare market, highlighting the company’s commitment to innovation and collaboration with major UK train builders, potentially strengthening its position in the industry.

Other
LPA Group CFO Increases Shareholding, Reflecting Confidence in Company’s Prospects
Positive
Feb 19, 2025

LPA Group plc announced that its Chief Financial Officer, Stuart Stanyard, has purchased 20,000 ordinary shares of the company at 56.1 pence per share, increasing his total shareholding to 40,000 shares, representing approximately 0.30% of the company’s issued share capital. This transaction demonstrates confidence in the company’s performance and prospects, potentially influencing investor sentiment and reflecting positively on the company’s industry positioning and stakeholder interests.

Shareholder MeetingsBusiness Operations and Strategy
LPA Group Announces Investor Presentation to Enhance Shareholder Engagement
Positive
Feb 19, 2025

LPA Group plc has announced that its CEO, Philo Daniel-Tran, and CFO, Stuart Stanyard, will host a live investor presentation via the Investor Meet Company platform on February 24, 2025. This presentation is open to existing and potential shareholders, allowing them to engage directly with the company’s leadership. This initiative underscores LPA Group’s commitment to transparency and shareholder engagement, potentially enhancing investor confidence and strengthening its market presence.

Product-Related AnnouncementsBusiness Operations and Strategy
LPA Group Secures Major Rail Component Contract
Positive
Feb 11, 2025

LPA Group plc has secured a £1.3 million contract to supply rail inter-car jumpers and connectors for a major UK train builder. This contract is expected to enhance LPA’s manufacturing capabilities at its Saffron Walden site and reinforce its position within the UK rail supply chain, with product deliveries anticipated to begin in summer 2025 and continue into 2026.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
LPA Group Reports 2024 Financial Results and Strategic Initiatives
Neutral
Jan 23, 2025

LPA Group plc reported a challenging financial year ending September 2024, with a reduction in order book and increased net debt. Despite these challenges, the company successfully integrated new acquisitions, expanded its market presence, and implemented strategic changes, including leadership restructuring. The company anticipates improved operational performance and potential profitability in FY 2025, driven by market diversification and enhanced product lines.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
LPA Group Reports 2024 Financial Results Amid Strategic Expansion
Neutral
Jan 23, 2025

LPA Group plc reported its financial results for the year ending September 30, 2024, revealing a reduction in order book and order entry, alongside an increased revenue. The company faced a loss before tax of £0.6m, driven by contract delays, though it achieved significant operational milestones, including the acquisition of Red Box International and the integration of a new ERP system. Despite financial challenges, LPA Group is optimistic about future growth, with strategic acquisitions, a focus on product-based business models, and an aim to increase operating performance and re-establish dividend distributions in the coming years. The new CEO, Dr. Philo Daniel-Tran, is expected to drive further market penetration and strengthen global customer relationships.

M&A TransactionsBusiness Operations and Strategy
LPA Group Expands Power Supply Capabilities with Powertron Acquisition
Positive
Jan 22, 2025

LPA Group plc has announced the acquisition of Eaton Electrical Products Limited’s Powertron business, enhancing its power supply offerings, particularly for the rail industry. This strategic acquisition is expected to diversify LPA’s product range and improve manufacturing efficiency, aligning with its strategy to produce more standardized products and reduce dependency on new project sales. The acquisition is anticipated to be neutral to FY25 profit but is projected to contribute positively over time, supporting increased sales volumes through LPA’s international distribution network.

LPA Group plc to Announce Final Results for FY2024
Jan 17, 2025

LPA Group plc announced that it will release its Final Results for the fiscal year ending 30 September 2024 on 23 January 2025. This announcement reflects LPA’s ongoing commitment to transparency and may influence stakeholders’ perceptions of the company’s financial health and strategic direction. The upcoming results could have implications for LPA’s positioning within its industry, potentially affecting its market presence and stakeholder relations.

LPA Group Appoints New CEO to Drive Strategic Growth
Jan 2, 2025

LPA Group plc has announced the appointment of Philo Daniel-Tran as the new Chief Executive Officer, effective 2 January 2025. This leadership change is part of LPA’s broader strategy to strengthen its market position in engineering solutions for the transport, defence, infrastructure, and industrial sectors, which could have significant implications for stakeholders as the company continues its focus on innovation and operational efficiency.

LPA Group Secures £4 Million in Rail Market Contracts
Dec 17, 2024

LPA Group plc has secured three significant contract awards valued at £4 million in the export rail market, including bespoke interior LED lighting for SNCF Voyageurs, LED lighting for Siemens Mobility’s Munich Metro overhaul, and seat electronics for Grammer AG’s project with Alstom Transport. These contracts highlight LPA’s reputation for product innovation and design, reinforcing its positioning in the rail industry and indicating potential growth opportunities for stakeholders.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.