Our investment recommendation tool can cross-verify current
analyst consensus on Lmp Automotive Holdings and to analyze the entity potential to grow in the current economic cycle. Lmp Automotive dividends can provide a clue to the current value of the stock. The firm is not expected to issue dividends this year as it is trying to preserve or re-invest any of the funds available for distribution to stakeholders.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Lmp Automotive income statement, its balance sheet, and the statement of cash flows. Potential Lmp Automotive investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Lmp Automotive investors may use each financial statement separately, they are all related. The changes in Lmp Automotive's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Lmp Automotive's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Lmp Automotive
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Lmp Automotive performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Lmp Automotive shares is the value that is considered the true value of the share. If
the intrinsic value of Lmp is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Lmp Automotive. Please read more on our
fundamental analysis page.
How important is Lmp Automotive's Liquidity
Lmp Automotive
financial leverage refers to using borrowed capital as a funding source to finance Lmp Automotive Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lmp Automotive financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Lmp Automotive's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Lmp Automotive's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Lmp Automotive's total debt and its cash.
Going after Lmp Financials
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Lmp Automotive is not uncomon. Many companies such as Lmp Automotive have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Lmp Automotive is distributed among investors.
Ownership Allocation
The
market capitalization of Lmp Automotive Holdings is $133.7 Million. Lmp Automotive Holdings holds significant amount of outstanding shares owned by
insiders. An
insider is usually defined as a CEO, other corporate executive, director, or
institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Note, that even with negative
profits, if the true value of the firm is larger than the current market value, you may still be able to generate positive returns on investment in this company.
| Retail Investors57.09% | Insiders40.88% | |
| Retail Investors | 57.09 |
| Insiders | 40.88 |
| Institutions | 2.03 |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Lmp Automotive has an asset utilization ratio of 95.67 percent. This suggests that the company is making $0.96 for each dollar of assets. An increasing asset utilization means that Lmp Automotive Holdings is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets | 16.34 Million | 91.01 |
| Assets Non Current | 1.55 Million | 8.61 |
| Goodwill | 68,134.32 | 0.38 |
Will Lmp Automotive continue to go out of control?
The information ratio is down to 0.12 as of today. Lmp Automotive Holdings is displaying above-average volatility over the selected time horizon. Investors should scrutinize Lmp Automotive Holdings independently to ensure intended market timing strategies are aligned with expectations about Lmp Automotive volatility.
Our Final Takeaway
While many of the other players under the auto & truck dealerships industry are still a bit expensive, Lmp Automotive may offer a potential longer-term growth to investors. To conclude, as of the 6th of September 2020, we believe Lmp Automotive is currently
undervalued. It moves totally opposite to the market and projects
very low probability of financial unrest in the next two years. Our primary 30 days recommendation on the company is
Cautious Hold.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Lmp Automotive Holdings. Please refer to our
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