Lendlease Group LLC

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A$6.02 −0.17 (2.67%)

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As of Apr 19, 2024 2:16am Delayed Price Open

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Company Report

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Lendlease's Balance Sheet and Earnings Expected to Improve in the Second Half of Fiscal 2024

Alexander Prineas Mar 7, 2024

Lendlease is a diversified global property developer, landlord, property manager, fund manager, and builder on a range of development projects, funds, and completed properties around the world. Interests have included include apartments, offices, retail property, aged care facilities, retirement and military accommodation, roads, and rail tunnels.

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Price vs Fair Value

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LLC is trading at a 54% discount.

Price

A$6.18

Apr 18, 2024

Fair Value

A$66.20

Feb 19, 2024

Uncertainty

High

1-Star Price: A$51.59
5-Star Price: A$7.98
Economic Moat: Jdl
Capital Allocation: Trbzvdsh

Bulls Say, Bears Say

Bulls

Lendlease has a huge development pipeline. Contract terms are confidential, but look to have been struck on attractive terms.

Bears

Lendlease’s construction division generates huge revenues but slim margins. Unexpected cost blowouts could be devastating.

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Trading Information

Previous Close Price: A$6.18
Day Range: A$6.01–6.15
52-Week Range: A$6.01–8.71
Bid/Ask: A$6.01 / A$6.02
Market Cap: A$4.17 Bil
Volume/Avg: 1.2 Mil / 2.3 Mil

Key Statistics

Price/Earnings (Normalized): 232.42
Price/Sales: 0.42
Dividend Yield (Trailing): 2.85%
Dividend Yield (Forward): 2.85%
Total Yield: 2.85%

Company Profile

Lendlease’s business comprises three segments: development, investments, and construction. Development accounted for more than half of EBITDA in 2020, and the future pipeline is so large it cannot be funded from its own balance sheet. The group is selling stakes in mature projects to its funds management clients. This sacrifices development profit, in return for management fees, reduced risk, and capital to accelerate new projects in the pipeline. Construction generates large revenues but slim margins. This business is retained to preserve expertise and scale for the development business. Lendlease sold its engineering and services business during the pandemic, but retains some risks, notably the Melbourne Metro project. It is also reducing its exposure to retirement living.

Sector: Real Estate
Industry: Real Estate - Diversified
Stock Style Box: Mid Value
Total Number of Employees: 12,000
Website: https://www.lendlease.com

Competitors

Valuation

Metric	LLC	SGP	CHC
Price/Earnings (Normalized)	232.42	20.71	12.03
Price/Book Value	0.68	1.07	1.93
Price/Sales	0.42	4.21	9.41
Price/Cash Flow	—	75.77	12.53

Price/Earnings

LLC

SGP

CHC

Financial Strength

Metric	LLC	SGP	CHC
Quick Ratio	0.59	0.60	2.57
Current Ratio	1.02	1.76	2.71
Interest Coverage	−1.36	1.35	−3.47

Quick Ratio

LLC

SGP

CHC

Profitability

Metric	LLC	SGP	CHC
Return on Assets (Normalized)	−2.07%	1.91%	−4.50%
Return on Equity (Normalized)	−5.66%	3.19%	−5.63%
Return on Invested Capital (Normalized)	−4.06%	1.43%	−4.69%

Return on Assets

LLC

SGP

CHC

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