January 21, 2021


Quick Take

LMP Automotive (LMPX) went public in December 2019, selling 2.645 million shares at $5.00 per share.

The firm has created an online platform and logistics network for selling or renting of automobiles in the United States.

LMPX may need to take a breather while the firm absorbs the Atlantic deal and we see further guidance going forward, so I’m Neutral on the stock at the current level.


Plantation, Florida-based LMP was founded in 2016 to develop an online and offline automotive retail platform that enables the selling, renting, subscribing and financing of pre-owned and new automobiles.

Management is headed by Chairman, President, and CEO Samer Tawfik, who has been with the firm since 2016 and was previously founder and Chief Executive Officer of Telco Group.

LMP describes its business model as “Buy, Rent or Subscribe, Sell and Repeat,” where the company purchases pre-owned vehicles through auctions or directly from dealers and new automobiles at fleet rates from manufacturers and manufacturer distributors.

The company then either rents automobiles to customers or allows them to opt for a subscription plan for vehicles with a minimum usage of 30 days.

LMP then sells its inventory, including vehicles used for rentals and subscriptions, and hopes to repeat the same process again, as shown below:

Source: Company registration statement

Additionally, the firm provides the option to extend automotive warranties and schedule deliveries and pick-ups, typically through third parties.

Management’s expectations are over 90% of the firm’s fleet to be rented or subscribed and in use with the capabilities to support 1,000 customers using the company’s current facility.

Recent Performance

LMPX’ topline revenue by quarter has grown markedly since the firm’s IPO:

Gross profit by quarter has also grown according to a similar trajectory:

Operating income by quarter remained negative until the most recent reporting period, Q2 2020:

Earnings per share (Diluted) swung into positive territory in Q2 2020:

Source for chart data: Seeking Alpha

Since its IPO, LMPX’ stock price has risen 392 percent vs. the U.S. Specialty Retail index’ rise of 20.5 percent and the overall U.S. market’s growth of 18.7 percent in the past twelve months, as the chart below indicates:

Source: Simply Wall Street

Valuation Metrics

Below is a table of relevant capitalization and valuation figures for the company:



Market Capitalization


Enterprise Value


Price / Sales


Enterprise Value / Sales


Enterprise Value / EBITDA


Free Cash Flow [TTM]


Revenue Growth Rate


Earnings Per Share


Source: Company Financials

As a reference, a relevant public comparable to LMP would be Carvana (CVNA); shown below is a comparison of their primary valuation metrics:


Carvana (CVNA)

LMP Automotive (LMPX)


Price / Sales




Enterprise Value / Sales




Enterprise Value / EBITDA




Free Cash Flow [TTM]




Revenue Growth Rate




Source: Seeking Alpha


In its last earnings call, covering Q2 2020’s results, management highlighted its record topline growth


Automotive lead acid battery market is set to surpass a valuation of US$ 41.8 Bn and is poised to grow at a value CAGR of 5% during the forecast period (2019-2029). The surge in production of automobiles globally has supplemented the growth of lead acid battery market. Lead acid batteries are soaring on popularity as they provide an additional source of power to the vehicle. However, in the current scenario, the global automobile market has been stagnant in terms of profitable growth. This is anticipated to change in the coming years as the automotive sector is set to capture growth opportunities owing to the increasing vehicle production, thus aiding the demand for automotive lead acid batteries. Moreover, the heightened uptake of passenger cars globally, is expected to accelerate the growth of automotive lead acid battery market. Further, a steady rise in the use of pure electric and hybrid vehicles is fueling demand for enhanced flooded batteries which function as auxiliary batteries for starting, lighting, and ignition (SLI). The newest report by Fact.MR estimates that the enhanced flooded batteries will account for ~34% of the total global value share by the end of forecast period.

Key Takeaways of Automotive Lead Acid Battery Market

  • Flooded batteries are estimated to create an absolute $ opportunity of US$ ~4.9 Bn accounting for nearly 39% of the total share during the forecast period. Owing to the extensive use of cost-effective energy storage batteries in emerging countries, flooded battery segment is projected to expand 1.4X as compared to 2019
  • Asia-Pacific will remain the prominent region across the forecast period, accounting for more than 45% share in the automotive lead acid battery market.
  • The Internal Combustion Engine (ICE) technology segment is expected to create an absolute $ opportunity of US$ ~15.1 Bn during the forecast period owing to the continuous adoption of conventional vehicles over electric vehicles due to lack of charging infrastructure in developing economies.
  • In terms of value, the enhanced flooded battery type segment is expected to grow 2.2X over the forecast period

“Research and development initiatives for sustainable technologies and high performance at low costs is expected to provide new growth prospects in the automotive lead acid battery market” says the Fact.MR analyst

Partnerships to Remain Key Forte of Competitors

The report reveals some of the key players, including EnerSys Inc., Johnson Controls Inc., GS Yuasa Corporation, Panasonic Corporation, Leoch International Technology Limited, Exide Industries Ltd., East Penn Manufacturing Company, Exide Technologies Inc., CSB Battery Company Limited, NorthStar, FIAMM S.p.A., and others. Prominent manufacturers are focusing on building partnerships to strengthen their global presence. For instance,       

  • In 2019, Exide Industry partnered with JCB’s Electric Teletrucks. With this partnership Exide will provide nuanced battery solutions to JCB
  • In 2018, NorthStar teamed up with Daimler to create the world’s first ultra-high performance pure lead AGM battery

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