Logistic Properties of the Americas (NYSE: LPA)

Sector: Real Estate Industry: Real Estate - Development CIK: 0001997711
Market Cap 69.21 Mn
P/B 0.28
P/E 10.35
P/S 1.46
ROIC (Qtr) 3.38
Div Yield % 0.00
Rev 1y % (Qtr) 14.30
Total Debt (Qtr) 293.56 Mn
Debt/Equity (Qtr) 1.20
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About

Logistic Properties of the Americas (LPA) is a company that specializes in developing, owning, and managing logistics facilities in Central and South America. The company, which was incorporated in October 2023, is listed on the NYSE American under the ticker symbol LPA. LPA's main business activities involve developing and managing logistics facilities, which are designed to provide efficient distribution of goods for e-commerce and nearshoring trade. The company's portfolio consists of stabilized assets, properties under development, and land...

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Investment thesis

Bull case

  • Robust tangible asset base of 667.01M provides 430.36x coverage of working capital 1.55M, indicating strong operational backing.
  • Operating cash flow of 19.77M provides solid 0.68x coverage of current liabilities 29.22M, showing strong operational health.
  • Tangible assets of 667.01M provide robust 133.45x coverage of other current liabilities 5M, indicating strong asset backing.
  • Long-term investments of 6.60M provide solid 4.26x backing of working capital 1.55M, showing strategic capital allocation.
  • Cash position of 17.99M represents healthy 11.61x of working capital 1.55M, demonstrating strong operational liquidity.

Bear case

  • Operating cash flow of 19.77M barely covers its investment activities of (15.49M), with a coverage ratio of -1.28, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of 5.28M provides weak coverage of capital expenditures of 14.49M, with a 0.36 ratio suggesting additional external financing needs for growth initiatives.
  • Free cash flow of 5.28M represents just -0.17x of debt issuance (30.60M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 19.77M provides minimal 2x coverage of tax expenses of 9.90M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Tax assets of 1.61M provide limited offset against tax liabilities of 47.63M, which is 0.03x, indicating potential future cash flow pressure from tax obligations.

Peer comparison

Companies in the Real Estate - Development
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VTMX Vesta Real Estate Corporation, S.A.B. de C.V. 11.83 Bn 120.68 43.52 1.45 Bn
2 CCS Century Communities, Inc. 2.20 Bn 14.92 0.53 1.44 Bn
3 FOR Forestar Group Inc. 1.53 Bn 9.16 0.91 0.79 Bn
4 FPH Five Point Holdings, LLC 0.38 Bn 4.01 1.95 0.44 Bn
5 SKYH Sky Harbour Group Corp 0.19 Bn -44.25 7.89 0.35 Bn
6 OZ Belpointe PREP, LLC 0.19 Bn -5.15 26.12 0.26 Bn
7 JFB JFB Construction Holdings 0.16 Bn -53.12 7.47 0.00 Bn
8 SDHC Smith Douglas Homes Corp. 0.16 Bn 14.38 0.16 0.05 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.50 1.43
EV to Cash from Ops. EV/CFO 16.84 3.32
EV to Debt EV to Debt 1.13 296.38
EV to EBIT EV/EBIT 20.07 -7.88
EV to EBITDA EV/EBITDA 10.61 -0.77
EV to Free Cash Flow [EV/FCF] EV/FCF 63.12 -6.68
EV to Market Cap EV to Market Cap 4.81 1.29
EV to Revenue EV/Rev 7.00 10.93
Price to Book Value [P/B] P/B 0.28 2.09
Price to Earnings [P/E] P/E 10.35 6.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -24.67
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 23.30
Dividend per Basic Share Div per Share (Qtr) 0.00 0.13
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -3.13
Interest Coverage Interest Coverage 0.00 -12.63
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 3.41 -104.71
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -42.69 29.52
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.47
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 119.11 -5.81
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 343.96 -36.06
EBIT Growth (1y) % EBIT 1y % (Qtr) 154.49 7.48
EBT Growth (1y) % EBT 1y % (Qtr) 154.49 -2.06
EPS Growth (1y) % EPS 1y % (Qtr) 118.25 -8.78
FCF Growth (1y) % FCF 1y % (Qtr) 168.99 109.52
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 7.28 34.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.07 0.42
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.62 0.96
Current Ratio Curr Ratio (Qtr) 1.05 1.61
Debt to Equity Ratio Debt/Equity (Qtr) 1.20 0.97
Interest Cover Ratio Interest Cover Ratio 0.00 -12.63
Times Interest Earned Times Interest Earned 0.00 -12.63
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 37.30 6.42
EBIT Margin % EBIT Margin % (Qtr) 34.89 35.19
EBT Margin % EBT Margin % (Qtr) 34.89 -40.37
Gross Margin % Gross Margin % (Qtr) 100.00 29.45
Net Profit Margin % Net Margin % (Qtr) 14.10 -51.49