Fundamental Analysis of LEMONADE INC(NYSE:LMND) stock

Fundamental Rating

We assign a fundamental rating of 2 out of 10 to LMND. LMND was compared to 141 industry peers in the Insurance industry. LMND may be in some trouble as it scores bad on both profitability and health. LMND is valued quite expensively, but it does show have an excellent growth rating.

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1. Profitability

1.1 Basic Checks

In the past year LMND has reported negative net income.

In the past year LMND has reported a negative cash flow from operations.

In the past 5 years LMND always reported negative net income.

In the past 5 years LMND always reported negative operating cash flow.

1.2 Ratios

LMND's Return On Assets of -14.50% is on the low side compared to the rest of the industry. LMND is outperformed by 94.29% of its industry peers.

Looking at the Return On Equity, with a value of -33.42%, LMND is doing worse than 91.43% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	-14.5%
ROE	-33.42%
ROIC	N/A

ROA(3y)-16.03%

ROA(5y)-17.81%

ROE(3y)-30.73%

ROE(5y)-30.25%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

LMND does not have Profit Margin and Operating Margin and Gross Margin available, so we won't be analyzing them here.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	N/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

LMND does not have a ROIC to compare to the WACC, probably because it is not profitable.

The number of shares outstanding for LMND has been increased compared to 1 year ago.

LMND has more shares outstanding than it did 5 years ago.

The debt/assets ratio for LMND is higher compared to a year ago.

2.2 Solvency

A Debt/Equity ratio of 0.02 indicates that LMND is not too dependend on debt financing.

The Debt to Equity ratio of LMND (0.02) is better than 90.71% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.02
Debt/FCF	N/A
Altman-Z	N/A

ROIC/WACCN/A

WACC9.1%

2.3 Liquidity

A Current Ratio of 0.14 indicates that LMND may have some problems paying its short term obligations.

LMND has a better Current ratio (0.14) than 66.43% of its industry peers.

A Quick Ratio of 0.14 indicates that LMND may have some problems paying its short term obligations.

LMND has a Quick ratio of 0.14. This is in the better half of the industry: LMND outperforms 66.43% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.14
Quick Ratio	0.14

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

LMND shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.03%, which is quite impressive.

The Revenue has grown by 67.43% in the past year. This is a very strong growth!

Measured over the past years, LMND shows a very strong growth in Revenue. The Revenue has been growing by 80.39% on average per year.

EPS 1Y (TTM)26.03%

EPS 3YN/A

EPS 5YN/A

EPS growth Q2Q34.41%

Revenue 1Y (TTM)67.43%

Revenue growth 3Y65.74%

Revenue growth 5Y80.39%

Revenue growth Q2Q30.66%

3.2 Future

The Earnings Per Share is expected to grow by 13.76% on average over the next years. This is quite good.

Based on estimates for the next years, LMND will show a very strong growth in Revenue. The Revenue will grow by 25.80% on average per year.

EPS Next Y6.25%

EPS Next 2Y9.74%

EPS Next 3Y13.76%

EPS Next 5YN/A

Revenue Next Year20.78%

Revenue Next 2Y24.57%

Revenue Next 3Y23.19%

Revenue Next 5Y25.8%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for LMND. In the last year negative earnings were reported.

Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for LMND. No positive earnings are expected for the next year.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

4.3 Compensation for Growth

LMND's earnings are expected to grow with 13.76% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y9.74%

EPS Next 3Y13.76%

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5. Dividend

5.1 Amount

LMND does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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LEMONADE INC

NYSE:LMND (5/6/2024, 10:45:09 AM)

18.0401

+0.66 (+3.8%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupInsurance

GICS IndustryInsurance

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap1.27B

Analysts

Price Target

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Dividend Growth(5Y)

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

Avg EPS beat(2)

Min EPS beat(2)

Max EPS beat(2)

EPS beat(4)

Avg EPS beat(4)

Min EPS beat(4)

Max EPS beat(4)

EPS beat(8)

Avg EPS beat(8)

EPS beat(12)

Avg EPS beat(12)

EPS beat(16)

Avg EPS beat(16)

Revenue beat(2)

Avg Revenue beat(2)

Min Revenue beat(2)

Max Revenue beat(2)

Revenue beat(4)

Avg Revenue beat(4)

Min Revenue beat(4)

Max Revenue beat(4)

Revenue beat(8)

Avg Revenue beat(8)

Revenue beat(12)

Avg Revenue beat(12)

Revenue beat(16)

Avg Revenue beat(16)

PT rev (1m)

PT rev (3m)

EPS NQ rev (1m)

EPS NQ rev (3m)

EPS NY rev (1m)

EPS NY rev (3m)

Revenue NQ rev (1m)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA

EPS(TTM)

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-14.5%
ROE	-33.42%
ROCE
ROIC
ROICexc
ROICexgc
OM	N/A
PM (TTM)	N/A
GM	N/A
FCFM

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

ROICexgc(5y)

ROCE(3y)

ROCE(5y)

ROICexcg growth 3Y

ROICexcg growth 5Y

ROICexc growth 3Y

ROICexc growth 5Y

OM growth 3Y

OM growth 5Y

PM growth 3Y

PM growth 5Y

GM growth 3Y

GM growth 5Y

F-Score

Asset Turnover0.26

Health

		Industry Rank	Sector Rank
Debt/Equity	0.02
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio	0.14
Quick Ratio	0.14
Altman-Z

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

Cap/Sales(5y)

Profit Quality(3y)

Profit Quality(5y)

Growth

EPS 1Y (TTM)26.03%

EPS 3YN/A

EPS 5Y

EPS growth Q2Q

EPS Next Y6.25%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)67.43%

Revenue growth 3Y65.74%

Revenue growth 5Y

Revenue growth Q2Q

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

EBIT Next Year

EBIT Next 3Y

EBIT Next 5Y

FCF growth 1Y

FCF growth 3Y

FCF growth 5Y

OCF growth 1Y

OCF growth 3Y

OCF growth 5Y

LEMONADE INC (LMND)

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

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