Life360, Inc.
Life360, Inc. Fundamental Analysis
Life360, Inc. (LIFX) shows strong financial fundamentals with a PE ratio of 7.66, profit margin of 28.21%, and ROE of 31.35%. The company generates $1.6B in annual revenue with strong year-over-year growth of 31.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 81.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze LIFX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentLIFX demonstrates superior asset utilization.
Valuation Score
ExcellentLIFX trades at attractive valuation levels.
Growth Score
ExcellentLIFX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentLIFX maintains a strong and stable balance sheet.
Profitability Score
ExcellentLIFX achieves industry-leading margins.
Key Financial Metrics
Is LIFX Expensive or Cheap?
P/E Ratio
LIFX trades at 7.66 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LIFX's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Life360, Inc. at 1.91 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 108.26 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 $28.21 as profit after all expenses.
Operating Margin
Core operations generate 1.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.35 in profit for every $100 of shareholder equity.
ROA
Life360, Inc. generates $14.34 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 $288.27M, showing steady but balanced cash generation.
Free Cash Flow
Life360, Inc. generates strong free cash flow of $276.83M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.14 in free cash annually.
FCF Yield
LIFX converts 2.63% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.002
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.56
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.009
vs 25 benchmark
How LIFX Stacks Against Its Sector Peers
| Metric | LIFX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.66 | 36.84 | Better (Cheaper) |
| ROE | 31.35% | 970.00% | Weak |
| Net Margin | 28.21% | 5926859214.00% | Weak |
| Debt/Equity | 0.52 | 0.39 | Weak (High Leverage) |
| Current Ratio | 5.37 | 4.94 | Strong Liquidity |
| ROA | 14.34% | -295460.00% (disorted) | Strong |
LIFX outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
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
287.66%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
689.86%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
880.89%
Industry Style: Growth, Innovation, High Beta
High Growth