# London Security plc (LSC.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Professional Services. Price 3600p, market value 441 millionp.

## Valuation
- **P/E (trailing): 18.6×** (5-yr avg 1657.6×, 3-yr avg 1647.2×). London Security plc trades at 18.6× trailing earnings, well below its own five-year average of 1657.6×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×.
- **Price / sales: 0.9×**. Each dollar of revenue is priced at 0.9×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.6×**. The shares trade at 2.6× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 4.7×**. Enterprise value is 4.7× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 11.5%** (5-yr avg 0.1%). Free cash flow equals 11.5% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 5.4%**. The inverse of the P/E: 5.4% of the price is earned each year.

## Profitability
- **Gross margin: 73.3%**. London Security plc keeps 73.3% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 13.4%**. 13.4% of revenue is left after running the business.
- **Net margin: 9.7%**. 9.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 13.9%**. 13.9% on shareholders' equity is solid.
- **Return on invested capital: 34.0%**. Return on all capital, debt included, is 34.0%: comfortably above what that capital costs.
- **Return on assets: 20.2%**. Each dollar of assets produces 20.2% of profit.

## Growth
- **Revenue growth (1 yr): 10.7%** (3-yr 9.0%/yr, 5-yr 9.9%/yr). Revenue grew 10.7% over the last year, against 9.9% a year compounded over five years.
- **EPS growth (1 yr): 9.6%** (3-yr 5.5%/yr, 5-yr 5.8%/yr). Earnings per share rose 9.6%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 26.8%/yr**. Free cash flow has compounded at 26.8% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.05**. Debt is 0.05 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. London Security plc holds more cash than debt.
- **Interest coverage: 75.0×**. Operating profit covers interest 75.0× over, a safe margin.
- **Current ratio: 2.58** (quick 2.08). Current assets cover the next year's liabilities 2.58 times.
- **Altman Z-score: 8.00**. A Z-score of 8.00 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.66%** (1p per share, trailing). London Security plc yields 2.66%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 50%** (53% of free cash flow). 50% of earnings goes out as dividends, leaving room to keep raising it.
- **Dividend growth (5 yr): 10.1%/yr** (1-yr -20.5%). The dividend has compounded at 10.1% a year over five years, doubling roughly every 7 years at that pace.
- **Shareholder yield: 2.7%**. Dividends plus net buybacks return 2.7% of the market value a year.

## Price and momentum
- **From 52-week high: -5.3%** (12990.9% above the low). Trading 5% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 100**. An RSI of 100 is in overbought territory; short-term pullbacks are common from here.

Live score and charts: https://foliofundamentals.com/analyzer?s=LSC.L · Page: https://foliofundamentals.com/stocks/lsc.l

Not investment advice.