La Rosa Holdings Corp., through its subsidiaries, operates primarily in the residential real estate market in the United States. It delivers coaching services to its brokers and franchisee's brokers; franchises real estate brokerage agencies, and trains its sales agents to provide residential property management services to owners of single-family residential properties. The company also engages in the real estate brokerage business, as well as sale of commercial real estate property. La Rosa Holdings Corp. was founded in 2004 and is based in Celebration, Florida.

La Rosa Holding Corp. Common Stock

Real Estate

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

LRHC reported revenue of USD 69mn in the last 12 months, up 68% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 53% from FY23 to USD -0.79.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 75ppts over six months and grown 26ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is slightly negative.

The company has reported very poor EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -18.6% in the last 12 months, a decline from -16.4% in FY23. 

Historically, LRHC has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -22.9%, down from -17.1% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to -94.4% in the last 12 months, a decrease from -77.8% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to -137.9%, below the peers. 

La Rosa Holding Corp. Common Stock reported a return on equity (RoE) of -375.6% in the last 12 months, up from -467.3% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 13.4 in the past several years. This ratio implies a excellent shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

LRHC has very poor trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity is very unstable and remains favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to bleak profitability, negligible return on capital, poor working capital management, inadequate interest coverage, and poor cash flow generation. We note resilient historical revenue growth, low margin volatility, and an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, LRHC is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, LRHC is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

Considering past and projected metrics, the stock is distinctly 'cheaper' than its peers. 

La Rosa Holding Corp. Common Stock

$ 0.15

3

La Rosa Holding Corp. Common Stock

$ 0.15

3

Risk factor

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Risk / Profitability

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Risk factor

Profitability factor

$ 0.15

About

About

La Rosa Holding Corp. Common Stock

$ 0.15

3

La Rosa Holding Corp. Common Stock

$ 0.15

3

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 0.15

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