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LMS Compliance Ltd (LMS) Fair Value & Analysis

Industrials · SG · Market cap 54.9M SGD

LC LMS Compliance Ltd LMS · SG
Price0.4300 SGD
Fair Value0.2635 SGD
Upside-38.7%
Quality54/100
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Healthy Growth
Solidly profitable · 19.3% net margin
Low debt · generates free cash flow
8.00% dividend yield
Ranks above peers (9/14)
Wide moat 78/100
Evidence: High Range 0.1955 SGD – 0.3315 SGD Share as image

Fair value as of: Aug 9, 2026

From 24 valuation models · updated yesterday

Share price +4.9% over the past month.

A solid business, but screening 39% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (0.3315 SGD). The favourable scenario is already priced in.
  • Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (4 years)

0.4350 SGD 0.1992 SGD Fair Value 0.2635 SGD Dec 2022 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 9, 2026.

How to read this chart

44‑month range 0.1992 SGD – 0.4350 SGD · fair‑value band 0.1955 SGD – 0.3315 SGD · the 0.4300 SGD price screens above the 0.2635 SGD fair value. Dashed = 300-day average. As of Aug 9, 2026.

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Analysis

LMS Compliance Ltd (LMS) currently trades at 0.4300 SGD, while our model-based Fair Value estimate is 0.2635 SGD, implying the stock looks roughly 38.7% overvalued today. The Quality Score stands at 54/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, LMS Compliance Ltd generated revenue of 33.6M SGD at a net margin of 19.3%. Revenue grew 57.4% year over year. It earns a return on equity of 16.6%. The stock trades on a trailing P/E of 20.0. Fundamentals as of Aug 9, 2026

Our scenario range runs from 0.1955 SGD (bear case) to 0.3315 SGD (bull case); at 0.4300 SGD, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 4% below its 52-week high and 55% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -35% fair-value upside, at -39%, LMS screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF 0.7000 SGD 1.10 SGD 1.74 SGD 80
Residual Income 0.3000 SGD 0.3400 SGD 0.5500 SGD 76
Rev-Margin DCF 0.5300 SGD 0.8600 SGD 1.34 SGD 74
All 24 models by family
DCF Models
FCF DCF 0.7300 SGD 1.05 SGD 1.85 SGD 38
Owner Earnings 0.6800 SGD 1.24 SGD 2.20 SGD 31
5Y Revenue Exit 0.5300 SGD 0.8100 SGD 1.34 SGD 39
5Y EBITDA Exit 1.04 SGD 1.91 SGD 3.49 SGD 41
5Y P/E Exit 0.7800 SGD 1.45 SGD 2.30 SGD 38
10Y Revenue Exit 0.5900 SGD 0.9300 SGD 1.31 SGD 36
10Y EBITDA Exit 0.9000 SGD 1.74 SGD 3.27 SGD 37
10Y P/E Exit 0.7500 SGD 1.33 SGD 2.30 SGD 35
Earnings-Based
Graham-Dodd 0.3200 SGD 2.22 SGD 3.12 SGD 54
Lynch FV 0.6500 SGD 0.9400 SGD 1.22 SGD 50
PEG = 1.0 0.6500 SGD 0.9400 SGD 1.22 SGD 46
EPV 0.6900 SGD 0.7700 SGD 0.8200 SGD 59
Multiples
P/E Multiple 0.7400 SGD 0.9900 SGD 1.24 SGD 63
P/S Multiple 0.3700 SGD 0.4900 SGD 0.6100 SGD 58
P/B Multiple 0.6000 SGD 0.8000 SGD 1.00 SGD 55
EV/EBIT 1.44 SGD 1.89 SGD 2.34 SGD 53
EV/EBITDA 1.27 SGD 1.67 SGD 2.06 SGD 54
EV/Revenue 0.4100 SGD 0.5400 SGD 0.6700 SGD 43
Asset-Based
NCAV (Graham) 0.1700 SGD 0.2300 SGD 0.3400 SGD 50
Growth DCF
Growth DCF 0.7000 SGD 1.10 SGD 1.74 SGD 80
Rev-Margin DCF 0.5300 SGD 0.8600 SGD 1.34 SGD 74
Economic Profit
Residual Income 0.3000 SGD 0.3400 SGD 0.5500 SGD 76
ROIC Compounder 0.7900 SGD 0.9900 SGD 1.22 SGD 72
Growth Earnings
Growth-Adj P/E 0.9000 SGD 1.28 SGD 1.67 SGD 68

Widest divergence: Growth Earnings (1.28 SGD) versus Asset-Based (0.2300 SGD). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 33.6M SGD
Revenue growth (YoY) +57.4%
Net margin 19.3%
Return on equity 16.6%
Free cash flow 7.9M SGD FY2025
P/E ratio 20.0
More key figures
Operating margin 27.9%
EPS (TTM) 0.0200 SGD
Dividend yield 8.0%
EPS growth (YoY) +40.5%
Net debt 963K SGD FY2021

Figures from reported company fundamentals · as of Aug 9, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 57 · Market factors (momentum, volatility) 64

Profitability 65
Margins and returns on capital today
Quality Growth 29
Are margins and returns improving?
Cashflow 83
Earnings quality: real cash, not paper profit
Fin. Strength 96
Balance sheet, leverage, solvency risk
Investment 30
Disciplined investing over empire-building
Low Volatility 60
Calm price path (market factor)
Momentum 63
Price trend over the last 3–12 months (market factor)
52W Momentum 70
Distance to the 52-week high (market factor)
Net Issuance 0
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

LMS Compliance Ltd. provides testing and certification services for food, pharmaceutical, and fertilizer industries in Malaysia. It operates through Testing and Assessment; Certification and Consultancy Services; Training and Assurance services; and Trading and Provision of Conformity Assessment technology segments.

Full company description

LMS Compliance Ltd. provides testing and certification services for food, pharmaceutical, and fertilizer industries in Malaysia. It operates through Testing and Assessment; Certification and Consultancy Services; Training and Assurance services; and Trading and Provision of Conformity Assessment technology segments. The company provides product safety testing and industry compliance assessment; ISO application, ISO certification, ISO conformity assessment, and ISO education services; and training and management consultancy services. It also offers decarbonization, regulatory consultation, assurance, GHG inventory verification, GHG removal validation and verification, product carbon footprint, sustainability report, self-declared environmental claims, biodegradable ecolabelling program, and life cycle assessment services, as well as database hosting for the Group's cloud-based applications. In addition, the company provides products, such as Aikinz, a laboratory information management system; Aizenz, a carbon accounting system; Aisinz, a global real-time surveillance scheme; Aihorz, a slope monitoring prevention; Aihorz, a flood monitoring prevention; and Aihorz, a LoRa GPS emission tracking. The company was founded in 2006 and is based in Perai, Malaysia. LMS Compliance Ltd. operates as a subsidiary of Louis May Pte. Ltd.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

LMS Compliance Ltd reported revenue of 33.6M SGD in FY2025 versus 17.0M SGD in FY2021, a compound +18.6%/yr. Reported net income was 6.5M SGD in FY2025, compounding +7.0%/yr from FY2021.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
33.6M SGD
Latest YoY
+32.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+21.7%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+16.3%
Avg. growth/yr (6Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.0%
Revenue +18.6%/yr
FY21 17.0M SGD
FY22 18.7M SGD
FY23 20.9M SGD
FY24 25.4M SGD
FY25 33.6M SGD
Net income +7.0%/yr
FY21 4.9M SGD
FY22 720K SGD
FY23 5.5M SGD
FY24 5.2M SGD
FY25 6.5M SGD

LMS screens 39% overvalued. Compare with Cintas Corporation →

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Cite: Fair Value Calculator (2026). "LMS Compliance Ltd Fair Value". https://www.fairvalue-calculator.com/stock/LMS

Peer Group

Specialty Business Services · 253 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 54 · Below median
Fair Value upside −39% · Below median
Return on equity (TTM) 17% · Top 25%
Return on assets 12% · Top 25%
Net margin (TTM) 19% · Top 25%
Operating margin (TTM) 28% · Top 25%
Revenue growth 57% · Top 25%
Dividend yield (TTM) 8.0% · Top 25%
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Specialty Business Services median · lower = cheaper

P/E (TTM) 20.0× · Pricier than median
P/B 0.91× · Cheaper than median
P/S (TTM) 1.27× · Pricier than median
P/FCF 5.5× · Pricier than median
EV/EBITDA 2.6× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 24
FUTURE 100 · sector 27
PAST 66 · sector 33
HEALTH 99 · sector 92
DIVIDEND 100 · sector 54

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Specialty Business Services stocks, each showing price versus our Fair Value estimate (as of Aug 9, 2026).

Stock Price Fair Value vs Fair Value
Cintas Corporation CTAS $206.25 $95.30 -54%
RELX PLC RELX $33.70 $32.49 -4%
Thomson Reuters Corporation TRI C$133.87 C$70.40 -47%
Copart, Inc CPRT $27.61 $28.59 +4%
Global Payments Inc GPN $80.49 $69.67 -13%
RB Global, Inc RBA C$156.43 C$49.14 -69%
Brambles Limited BXB A$18.79 A$12.28 -35%
UL Solutions Inc ULS $87.76 $33.62 -62%
Wolters Kluwer N.V WKL €62.56 €103.99 +66%
Aramark ARMK $56.74 $13.73 -76%

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Frequently asked questions

Is LMS Compliance Ltd (LMS) overvalued or undervalued?
As of Aug 9, 2026, our model estimates a fair value of 0.2635 SGD versus a price of 0.4300 SGD, about −39% (overvalued).
What is the fair value of LMS?
Our model-based fair value for LMS Compliance Ltd is 0.2635 SGD (as of Aug 9, 2026), built from audited fundamentals. The current price is 0.4300 SGD.
What is the quality score of LMS?
LMS Compliance Ltd has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of LMS Compliance Ltd (LMS)?
LMS Compliance Ltd reported trailing-twelve-month revenue of about 33.6M SGD (latest available figure, as of Aug 9, 2026).
What is the net profit margin of LMS?
The net profit margin of LMS Compliance Ltd is about 19.3%, meaning it keeps roughly 19.3% of revenue as net income. Based on the latest reported figures.
Does LMS Compliance Ltd pay a dividend?
LMS Compliance Ltd currently shows a dividend yield of about 8.00% relative to its recent price (as of Aug 9, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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