LIC Housing Finance Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (7x coverage).
• Dividends after 3 years are expected to be thoroughly covered by earnings (7.8x coverage).
• Dividends per share have been stable in the past 10 years.
• LIC Housing Finance's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• LIC Housing Finance's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

Cons

• LIC Housing Finance's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
• LIC Housing Finance's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
• LIC Housing Finance's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.2%.
• LIC Housing Finance's earnings are expected to decrease over the next year.
• LIC Housing Finance's net income is expected to decrease over the next 2 years.
• LIC Housing Finance is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
• Performance (ROE) is not expected to exceed the current IN Mortgage industry average.
• A decline in LIC Housing Finance's performance (ROE) is expected over the next 3 years.
• LIC Housing Finance's revenue is expected to increase but not above the 50% threshold in 2 years time.
• LIC Housing Finance's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
• LIC Housing Finance's revenue growth is positive but not above the India market average.

health

Pros

• LIC Housing Finance's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Cons

• LIC Housing Finance reports no customer deposits, loans are made up entirely of borrowed funds.

management

Pros

• The tenure for the LIC Housing Finance board of directors is about average.

Cons

• The average tenure for the LIC Housing Finance management team is less than 2 years, this suggests a new team.

misc

Pros

Cons

• LIC Housing Finance is covered by less than 3 analysts.
• LIC Housing Finance has significant price volatility in the past 3 months.

past

Pros

• LIC Housing Finance's 1-year earnings growth exceeds its 5-year average (14.9% vs 12.4%)
• LIC Housing Finance's year on year earnings growth rate has been positive over the past 5 years.
• LIC Housing Finance's earnings growth has exceeded the IN Mortgage industry average in the past year (14.9% vs -25.5%).

Cons

• LIC Housing Finance used its assets less efficiently than the IN Mortgage industry average last year based on Return on Assets.
• LIC Housing Finance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• LIC Housing Finance is good value based on earnings compared to the IN Mortgage industry average.
• LIC Housing Finance is good value based on earnings compared to the India market.
• BSE:500253 is up 11.8% outperforming the Mortgage industry which returned 7.7% over the past month.
• BSE:500253 is up 11.8% outperforming the market in India which returned 8% over the past month.

Cons

• LIC Housing Finance's share price is below the future cash flow value, but not at a moderate discount (< 20%).
• LIC Housing Finance's share price is below the future cash flow value, but not at a substantial discount (< 40%).
• LIC Housing Finance is overvalued based on assets compared to the IN Mortgage industry average.
• LIC Housing Finance earnings are not expected to grow next year, we can't assess if its growth is good value.
• 500253 underperformed the Mortgage industry which returned -26.3% over the past year.
• 500253 underperformed the Market in India which returned -14.5% over the past year.