LifeStance Health Group, Inc.
LifeStance Health Group, Inc. Fundamental Analysis
LifeStance Health Group, Inc. (LFST) shows weak financial fundamentals with a PE ratio of 258.06, profit margin of 0.68%, and ROE of 0.65%. The company generates $1.4B in annual revenue with strong year-over-year growth of 13.85%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LFST's fundamental strength across five key dimensions:
Efficiency Score
WeakLFST struggles to generate sufficient returns from assets.
Valuation Score
ModerateLFST shows balanced valuation metrics.
Growth Score
ModerateLFST shows steady but slowing expansion.
Financial Health Score
ExcellentLFST maintains a strong and stable balance sheet.
Profitability Score
ModerateLFST maintains healthy but balanced margins.
Key Financial Metrics
Is LFST Expensive or Cheap?
P/E Ratio
LFST trades at 258.06 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LFST's PEG of 1.25 indicates fair valuation.
Price to Book
The market values LifeStance Health Group, Inc. at 1.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 32.66 times EBITDA. This signals the market has high growth expectations.
How Well Does LFST Make Money?
Net Profit Margin
For every $100 in sales, LifeStance Health Group, Inc. keeps $0.68 as profit after all expenses.
Operating Margin
Core operations generate 1.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.65 in profit for every $100 of shareholder equity.
ROA
LifeStance Health Group, Inc. generates $0.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
LifeStance Health Group, Inc. produces operating cash flow of $147.58M, showing steady but balanced cash generation.
Free Cash Flow
LifeStance Health Group, Inc. generates strong free cash flow of $147.58M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.38 in free cash annually.
FCF Yield
LFST converts 5.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
258.06
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.77
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.007
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How LFST Stacks Against Its Sector Peers
| Metric | LFST Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 258.06 | 27.99 | Worse (Expensive) |
| ROE | 0.65% | 761.00% | Weak |
| Net Margin | 0.68% | -20190.00% (disorted) | Weak |
| Debt/Equity | 0.13 | 0.31 | Strong (Low Leverage) |
| Current Ratio | 1.65 | 4.55 | Neutral |
| ROA | 0.44% | -8871.00% (disorted) | Weak |
LFST outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews LifeStance Health Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
265.48%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
124.57%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
1757.90%
Industry Style: Defensive, Growth, Innovation
High Growth