Life360, Inc.
Life360, Inc. Fundamental Analysis
Life360, Inc. (LIFX) shows weak financial fundamentals with a PE ratio of 60.01, profit margin of 6.46%, and ROE of 7.95%. The company generates $1.4B in annual revenue with strong year-over-year growth of 21.99%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze LIFX's fundamental strength across five key dimensions:
Efficiency Score
WeakLIFX struggles to generate sufficient returns from assets.
Valuation Score
ModerateLIFX shows balanced valuation metrics.
Growth Score
ExcellentLIFX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentLIFX maintains a strong and stable balance sheet.
Profitability Score
WeakLIFX struggles to sustain strong margins.
Key Financial Metrics
Is LIFX Expensive or Cheap?
P/E Ratio
LIFX trades at 60.01 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LIFX's PEG of 0.87 indicates potential undervaluation.
Price to Book
The market values Life360, Inc. at 4.55 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 167.95 times EBITDA. This signals the market has high growth expectations.
How Well Does LIFX Make Money?
Net Profit Margin
For every $100 in sales, Life360, Inc. keeps $6.46 as profit after all expenses.
Operating Margin
Core operations generate 3.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.95 in profit for every $100 of shareholder equity.
ROA
Life360, Inc. generates $3.77 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Life360, Inc. produces operating cash flow of $194.12M, showing steady but balanced cash generation.
Free Cash Flow
Life360, Inc. generates strong free cash flow of $177.46M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.75 in free cash annually.
FCF Yield
LIFX converts 1.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
60.01
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.87
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How LIFX Stacks Against Its Sector Peers
| Metric | LIFX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 60.01 | 35.87 | Worse (Expensive) |
| ROE | 7.95% | 1175.00% | Weak |
| Net Margin | 6.46% | -136937.00% (disorted) | Weak |
| Debt/Equity | 0.79 | 0.45 | Weak (High Leverage) |
| Current Ratio | 6.80 | 4.81 | Strong Liquidity |
| ROA | 3.77% | -312685.00% (disorted) | Weak |
LIFX 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 Life360, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
92.47%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
151.17%
Industry Style: Growth, Innovation, High Beta
High Growth