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LSL Property Services (LSE:LSL) Financial Strength : 8 (As of Dec. 2023)


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What is LSL Property Services Financial Strength?

LSL Property Services has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

LSL Property Services PLC shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

LSL Property Services did not have earnings to cover the interest expense. LSL Property Services's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.22. As of today, LSL Property Services's Altman Z-Score is 4.55.


Competitive Comparison of LSL Property Services's Financial Strength

For the Real Estate Services subindustry, LSL Property Services's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


LSL Property Services's Financial Strength Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, LSL Property Services's Financial Strength distribution charts can be found below:

* The bar in red indicates where LSL Property Services's Financial Strength falls into.



LSL Property Services Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

LSL Property Services's Interest Expense for the months ended in Dec. 2023 was £0.2 Mil. Its Operating Income for the months ended in Dec. 2023 was £5.7 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £5.1 Mil.

LSL Property Services's Interest Coverage for the quarter that ended in Dec. 2023 is

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

LSL Property Services's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(26.394 + 5.085) / 143.848
=0.22

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

LSL Property Services has a Z-score of 4.55, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.55 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


LSL Property Services  (LSE:LSL) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

LSL Property Services has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


LSL Property Services Financial Strength Related Terms

Thank you for viewing the detailed overview of LSL Property Services's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


LSL Property Services (LSE:LSL) Business Description

Traded in Other Exchanges
Address
Newcastle House, Albany Court, Newcastle Business Park, Newcastle upon Tyne, GBR, NE4 7YB
LSL Property Services PLC provides residential property services to consumers. The Estate Agency and Related Services segment provides services related to the sale and letting of residential properties, Financial Services segment reflects the Financial Services income generated from the Estate Agency segment. The Surveying and Valuation Services segment provides valuations and professional survey services for residential properties. Some of the company offerings include residential sales, lettings, surveying, conveyancing and advice on mortgages and non-investment insurance products. Geographically all the business is operated in the UK and it derives the majority of its revenue from the Estate Agency and Related segment.

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