Lineage Cell Therapeutics, Inc.
Lineage Cell Therapeutics, Inc. Fundamental Analysis
Lineage Cell Therapeutics, Inc. (LCTX) shows moderate financial fundamentals with a PE ratio of -4.96, profit margin of -4.34%, and ROE of -1.52%. The company generates $0.0B in annual revenue with strong year-over-year growth of 53.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -428.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LCTX's fundamental strength across five key dimensions:
Efficiency Score
WeakLCTX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLCTX trades at attractive valuation levels.
Growth Score
ModerateLCTX shows steady but slowing expansion.
Financial Health Score
ExcellentLCTX maintains a strong and stable balance sheet.
Profitability Score
WeakLCTX struggles to sustain strong margins.
Key Financial Metrics
Is LCTX Expensive or Cheap?
P/E Ratio
LCTX trades at -4.96 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LCTX's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values Lineage Cell Therapeutics, Inc. at 5.91 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -7.43 times EBITDA. This is generally considered low.
How Well Does LCTX Make Money?
Net Profit Margin
For every $100 in sales, Lineage Cell Therapeutics, Inc. keeps $-4.34 as profit after all expenses.
Operating Margin
Core operations generate -2.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.52 in profit for every $100 of shareholder equity.
ROA
Lineage Cell Therapeutics, Inc. generates $-58.62 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Lineage Cell Therapeutics, Inc. generates limited operating cash flow of $-22.50M, signaling weaker underlying cash strength.
Free Cash Flow
Lineage Cell Therapeutics, Inc. generates weak or negative free cash flow of $-22.69M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.09 in free cash annually.
FCF Yield
LCTX converts -6.88% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-4.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
21.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.89
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.52
vs 25 benchmark
ROA
Return on assets percentage
-0.59
vs 25 benchmark
ROCE
Return on capital employed
-0.37
vs 25 benchmark
How LCTX Stacks Against Its Sector Peers
| Metric | LCTX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -4.96 | 29.06 | Better (Cheaper) |
| ROE | -152.10% | 733.00% | Weak |
| Net Margin | -434.44% | -53111.00% (disorted) | Weak |
| Debt/Equity | 0.04 | 0.38 | Strong (Low Leverage) |
| Current Ratio | 6.89 | 4.02 | Strong Liquidity |
| ROA | -58.62% | -19397.00% (disorted) | Weak |
LCTX outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Lineage Cell Therapeutics, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
1127.82%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-100.62%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
37.55%
Industry Style: Defensive, Growth, Innovation
High Growth