Lmp Automotive Story

LMPX -- USA Stock

USD 26.59 1.02 3.99%

Macroaxis Story

The stock experiences an active upward rally. While some of us are getting worried about consumer cyclical space, it is reasonable to break down Lmp Automotive Holdings using its current fundamental data. We will analyze why it could be a much better year for Lmp Automotive shareholders. The company moves totally opposite to the market. We can now inspect Lmp Automotive as a potential investment option for your portfolios.

Published over three months ago

View all stories for Lmp Automotive | View All Stories

Does Lmp Automotive (NASDAQ:LMPX) have strong basic indicators based on the current rise?

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 Lmp Automotive 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. Please check the breakdown between Lmp Automotive's total debt and its cash.

How Lmp Automotive utilizes its cash?

To perform a cash flow analysis of Lmp Automotive, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Lmp Automotive is receiving and how much cash it distributes out in a given period. The Lmp Automotive cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Lmp Automotive Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Lmp Automotive reported Net Cash Flow from Operations of (4.58 Million) in 2020

Lmp Automotive Gross Profit

Lmp Automotive Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Lmp Automotive previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Lmp Automotive Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Lmp Automotive exotic insider transaction detected

Legal trades by Lmp Automotive insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

Lmp Automotive insider trading alert for general transaction of call option by Aldahan Richard, Chief Operating Officer, on 3rd of December 2020. This event was filed by Lmp Automotive Holdings I with SEC on 2020-12-03. Initial filing of beneficial ownership - SEC Form 3 [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Lmp Automotive Indicators

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 Investors

57.09%

Insiders

40.88%

	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

16.3 M

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.

About Contributor

Achuva Shats is a Member of Macroaxs Editorial Board. Achuva 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 Achuva Shats do not own shares of Lmp Automotive Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2021 Macroaxis LLC