(LCS) Brompton Lifeco Split - Ratings and Ratios

Brompton Lifeco Split Corp. (LCS) is a Canadian closed-ended equity mutual fund established on January 19, 2007, and managed by Brompton Funds Limited. The fund specializes in investing in publicly traded equity securities of companies primarily engaged in the life insurance sector within Canada. It employs a structured investment approach, focusing on a portfolio of common shares, with the ability to issue preferred shares to meet financing requirements. The fund benchmarks its performance against the S&P/TSX Capped Financials Index and the S&P/TSX Composite Index. LCS is structured as a split corporation, offering investors exposure to both capital units and preferred shares, providing a unique investment vehicle tailored for income generation and capital appreciation. Additional information is available at: https://www.bromptongroup.com/funds/fund/lcs/overv.

From a technical perspective, LCS has shown stability with an average 20-day trading volume of 21,925 shares. The stock is currently trading at $7.84, closely aligned with its 20-day ($7.83) and 50-day ($7.95) simple moving averages (SMA), while maintaining a slight premium to its 200-day SMA ($6.98). The Average True Range (ATR) of 0.21 indicates relatively low price volatility.

Fundamentally, LCS operates with a market capitalization of $52.92 million CAD, reflecting its position as a niche player in the Canadian financial sector. The trailing price-to-earnings (P/E) ratio of 7.06 suggests undervaluation relative to broader market multiples, while the price-to-book (P/B) ratio of 1.38 indicates that the market values the fund slightly above its book value. The price-to-sales (P/S) ratio of 3.24 aligns with industry peers, and the return on equity (RoE) of 43.73% highlights strong profitability and efficient use of shareholder capital.

3-Month Forecast: Based on , LCS is expected to trade within a narrow range due to its proximity to key SMAs and low ATR. Upside potential may emerge if the stock breaks above the 50-day SMA at $7.95, while downside risk is limited by the 200-day SMA support at $6.98. From a perspective, LCSs attractive P/E ratio and high RoE position it as a candidate for outperformance in the Canadian financials sector, particularly if market sentiment shifts toward undervalued financial stocks.