Lifeloc Technologies (LCTC) AI Stock Analysis

• Market Cap: $5.89M
• Dividend Yield: N/A
• Average Volume (3M): 94.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: -1.74%
• EPS Growth: -79.39%
• Country: US
• Employees: 39
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.10
• Shares Outstanding: 2,752,616
• 10 Day Avg. Volume: 100
• 30 Day Avg. Volume: 94
• PEG Ratio: 0.01
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.82
• P/FCF Ratio: -3.47
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 1.53
• Enterprise Value/Ebitda: -6.21
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $3.00 ▲(32.16% Upside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

The score is primarily held back by weak financial performance (revenue decline, negative profitability, and negative operating cash flow). Technicals provide some support with the stock trading above key moving averages, but momentum is mixed and RSI is very elevated. Valuation is also constrained by a negative P/E and no dividend yield data.

Positive Factors

Niche market leadership & diversified end markets

Lifeloc's focus on alcohol and drug testing equipment for law enforcement, transport and workplace safety creates durable demand driven by compliance needs. Serving multiple regulated end markets reduces revenue cyclicality and rewards established vendors with long procurement cycles and stickier contracts.

Recurring revenue mix

Revenue from software licensing, maintenance and training provides recurring, higher‑visibility cash flows and increases customer stickiness. This mix supports lifetime value, creates cross‑sell opportunities alongside hardware, and helps stabilize revenue during hardware sales cycles over the medium term.

Healthy gross margin

A roughly 40.6% gross margin signals underlying production or service delivery efficiency and pricing power in core products. Sustained margins give the company room to invest in R&D and service infrastructure, supporting product differentiation and long‑term competitiveness if topline stabilizes.

Negative Factors

Declining revenue trend

An ~12% TTM revenue decline erodes scale and reduces the ability to cover fixed costs, weakening operating leverage. Prolonged top‑line contraction can force cuts to R&D or sales investments, impair long‑term growth prospects, and make it harder to defend market position against competitors.

Negative profitability

Persistent negative net and EBIT margins indicate the core business is not generating operating profits, limiting internal funding for growth and innovation. Ongoing losses increase reliance on external capital, constrain strategic flexibility, and raise execution risk for sustaining competitive investments.

Weak operating cash generation

Negative operating cash flow shows core operations aren't converting to cash despite reported FCF growth, while a negative FCF-to-net‑income ratio signals uneven cash conversion. Over time this pressures liquidity, may require financing, and makes sustained reinvestment and debt service riskier.

Lifeloc Technologies Business Overview & Revenue Model

Company Description

Lifeloc Technologies, Inc. develops, manufactures, and markets portable hand-held and fixed station breathalyzers and related accessories for law enforcement, workplace, corrections, original equipment manufacturing, and consumer markets worldwide. It offers fuel-cell based breath alcohol testing equipment; and a line of supplies, accessories, services, and training to support customers' alcohol testing programs. The company also develops and sells online drug and alcohol training and refresher courses. In addition, it engages in the ownership and rental of real property through existing commercial leases. In addition, it provides breathalyzers, sentinel alcohol systems, R.A.D.A.R alcohol detection and reporting systems, calibration equipment, drug screen products, and impairment goggles, as well as alcomark breath testing management software. Lifeloc Technologies, Inc. serves to schools, oil and gas, military, and chiropractic industries. The company was incorporated in 1983 and is headquartered in Wheat Ridge, Colorado. Lifeloc Technologies, Inc. is a subsidiary of EDCO Partners LLLP.

How the Company Makes Money

LCTC generates revenue primarily through the sale of its alcohol and drug testing devices, which are marketed to government agencies, corporations, and healthcare facilities. Additional revenue streams include software licensing for their management systems, maintenance contracts for their testing equipment, and training services for end-users. The company also benefits from strategic partnerships with organizations that require compliance testing, which helps expand its market reach and drives sales growth. Furthermore, LCTC engages in research and development to innovate new products, ensuring they meet evolving industry standards and customer needs, thereby sustaining their competitive edge and revenue generation.

Lifeloc Technologies Financial Statement Overview

Summary

Overall financials are pressured by declining revenue (-11.86% TTM) and weak profitability (negative net profit and EBIT margins). The balance sheet is relatively stable with moderate leverage (debt-to-equity 0.31) and a healthy equity ratio, but returns are weak (ROE -18.66%) and cash generation remains a concern with negative operating cash flow.

Income Statement

Lifeloc Technologies has experienced declining revenue with a negative growth rate of -11.86% in the TTM. The company is facing profitability challenges, as indicated by negative net profit and EBIT margins. However, the gross profit margin remains relatively stable at 40.62%, suggesting some efficiency in production or service delivery.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.31, indicating a balanced approach to leveraging. However, the return on equity is negative at -18.66%, reflecting challenges in generating returns for shareholders. The equity ratio is healthy, suggesting a solid capital structure.

Cash Flow

Lifeloc Technologies shows a significant improvement in free cash flow growth at 193.47% in the TTM, but the operating cash flow remains negative. The free cash flow to net income ratio is negative, indicating cash flow issues relative to earnings.

Breakdown	TTM	Dec 2024	Mar 2024	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.49M	8.54M	9.33M	8.48M	7.05M	6.36M
Gross Profit	3.45M	3.45M	4.04M	3.07M	3.06M	2.18M
EBITDA	-847.33K	-1.07M	139.45K	98.46K	937.83K	-777.96K
Net Income	-1.26M	-1.05M	205.61K	-455.76K	675.97K	-921.93K
Balance Sheet
Total Assets	8.30M	8.72M	8.69M	8.52M	8.95M	8.54M
Cash, Cash Equivalents and Short-Term Investments	685.10K	1.24M	1.77M	2.35M	2.57M	2.20M
Total Debt	54.43K	1.80M	1.22M	1.27M	1.32M	1.79M
Total Liabilities	2.68M	2.50M	2.33M	2.36M	2.36M	2.64M
Stockholders Equity	5.62M	6.23M	6.36M	6.16M	6.59M	5.90M
Cash Flow
Free Cash Flow	-250.85K	-2.02M	-533.96K	-168.25K	-85.53K	-1.41M
Operating Cash Flow	-187.38K	-1.33M	-525.74K	54.33K	182.94K	-1.36M
Investing Cash Flow	-392.66K	-689.45K	-8.21K	-222.58K	-268.48K	-46.27K
Financing Cash Flow	1.11M	1.49M	-52.18K	-50.66K	462.13K	419.13K

Lifeloc Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LCTC, the sentiment is Positive. The current price of 2.27 is below the 20-day moving average (MA) of 2.58, below the 50-day MA of 2.47, and below the 200-day MA of 2.94, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 65.32 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LCTC.

Lifeloc Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPSH	64 Neutral	$80.55M	-110.34	-3.84%	―	38.22%	70.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KULR	59 Neutral	$128.35M	-4.34	-29.07%	―	71.92%	31.84%
LCTC	48 Neutral	$5.89M	-4.60	-19.84%	―	-1.74%	-79.39%
REFR	44 Neutral	$33.49M	-17.70	-87.36%	―	-16.49%	-59.21%
SOBR	42 Neutral	$1.38M	-0.11	-203.38%	―	―	―
LINK	41 Neutral	$49.93M	-25.30	-13.78%	―	-1.70%	17.13%