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Lifecore Biomedical (LFCR)
NASDAQ:LFCR
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Lifecore Biomedical
(NASDAQ:LFCR)
Rating:46Neutral
Price Target:
$6.50
▼(-5.52%Downside)
Positive Factors
Business Development
The sale of Lifecore's excess capital equipment is seen as a smart move because it provides $17 million in cash and enhances financial flexibility.
Performance
Lifecore Biomedical, Inc. delivered a generally solid third quarter result, which included better-than-expected performance in terms of adjusted EBITDA.
Revenue Growth
Strong development pipeline, enhanced business development strategy and resources, and industry tailwinds should enable Lifecore to execute against its midterm revenue guide and deliver low-teens top-line growth over the longer term.
Negative Factors
Debt Levels
Lifecore has a highly leveraged balance sheet with approximately $180.1 million in debt and $44.3 million in convertible preferred stock.
Regulatory Risk
Lifecore could face quality-assurance problems with the FDA or another regulator.
Valuation Concerns
A premium valuation still seems inappropriate due to leverage and valuation concerns.
Lifecore Biomedical (LFCR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$254.36M
Dividend YieldN/A
Average Volume (3M)251.00K
Price to Earnings (P/E)―
Beta (1Y)0.71
Revenue Growth6.88%
EPS Growth-17.54%
CountryUS
Employees524
SectorHealthcare
Sector Strength41
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.47
Shares Outstanding37,025,330
10 Day Avg. Volume344,077
30 Day Avg. Volume250,998
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)115.76
Price to Sales (P/S)0.00
P/FCF Ratio-24.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.00Price Target Upside30.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Lifecore Biomedical Business Overview & Revenue Model
Company DescriptionLifecore Biomedical (LFCR) is a prominent company operating in the biotechnology and pharmaceutical sectors, specializing in the development, manufacturing, and commercialization of high-purity, injectable-grade hyaluronic acid products. The company provides contract development and manufacturing services for medical device and pharmaceutical companies, focusing on products that meet stringent regulatory standards.
How the Company Makes MoneyLifecore Biomedical makes money primarily through its contract development and manufacturing services, which involve producing injectable-grade hyaluronic acid and related biomaterials for its clients, including pharmaceutical and medical device companies. The company generates revenue by leveraging its expertise in fermentation and aseptic processing to manufacture products under strict regulatory compliance for its clients. Significant partnerships with these companies contribute to its earnings, as Lifecore's specialized capabilities and high-quality production processes are crucial for its clients' product development and commercialization needs.
Lifecore Biomedical Earnings Call Summary
Earnings Call Date:Apr 03, 2025
(Q3-2025)
| % Change Since: 1.03%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strategic advancements, new partnerships, and operational improvements, but was weighed down by decreased quarterly revenue and a significant net loss. The company remains optimistic about future growth and financial recovery.Q3-2025 Updates
Positive Updates
New Customer Agreements and Partnerships
Lifecore signed multiple new agreements with both new and existing customers, including a significant agreement with Nirsum Laboratories and a post-quarter agreement with Humanetics.
Improved Financial Management
Cash flow from operations turned positive at $2 million, despite legacy legal expenses, and the company is on track to be cash flow positive in the second half of the fiscal year.
Strategic Focus and Future Growth Plans
Lifecore is focused on a 12% revenue CAGR and increasing EBITDA margins to over 25% over the next few years, with significant advancements in their late-stage pipeline towards commercialization.
Operational Efficiencies and Cost Reductions
Lifecore made substantial improvements in reducing operational expenses, improving productivity, and enhancing fermentation processing efficiency.
Negative Updates
Decrease in Quarterly Revenue
Revenues for the third quarter were $35.2 million, a decrease of 2% compared to the same period last year, primarily due to a decrease in CDMO revenues.
Net Loss for the Quarter
The company recorded a net loss of $14.8 million compared to net income of $15.6 million in the same period last year, affected by a prior year one-time favorable adjustment.
Increased SG&A Expenses
Selling, general, and administrative expenses for the quarter increased to $10.1 million from $9.8 million in the same period last year, driven by litigation and legacy legal matters.
Company Guidance
During Lifecore Biomedical's fiscal 2025 third quarter earnings call, the company reported revenues of $35.2 million, marking a 2% decrease from the prior year's $35.7 million. This decline was primarily attributed to a $1.5 million reduction in CDMO revenues, offset by a $1 million increase in hyaluronic acid manufacturing revenues. Gross profit for the quarter was $9.8 million, compared to $11.9 million in the previous year, with the net loss recorded at $14.8 million, contrasting sharply with a net income of $15.6 million from the same period last year. Selling, general, and administrative expenses totaled $10.1 million, slightly up from $9.8 million, driven by increased litigation expenses. Adjusted EBITDA was reported at $5.7 million, down from $6.4 million in the prior year. The company's guidance for fiscal 2025 remains unchanged, with expected revenues between $126.5 million and $130 million, and adjusted EBITDA forecasted between $19 million and $21 million.Lifecore Biomedical Financial Statement Overview
Summary
Lifecore Biomedical faces a challenging financial landscape characterized by modest revenue growth but significant profitability and leverage issues. The company's financial health is constrained by high debt levels and negative equity, raising concerns about its ability to sustain operations without restructuring or additional financing. The cash flow improvements are a positive sign but insufficient to offset broader financial weaknesses.Income Statement
Lifecore Biomedical's TTM revenue shows modest growth over the previous year, but profitability remains a concern. The company exhibits a negative EBIT and net profit margin, indicating operational challenges. Despite a slight revenue increase, the negative margins highlight potential inefficiencies or cost management issues.45
Neutral
Balance Sheet
The balance sheet reflects high leverage with a substantial debt-to-equity ratio, exacerbated by negative equity in the TTM period. The company's liabilities surpass assets, posing significant financial risks and limiting financial flexibility. The return on equity is not meaningful due to negative equity, which is a red flag for potential investors.30
Negative
Cash Flow
While Lifecore Biomedical's operating cash flow has improved in the TTM period, the free cash flow remains negative due to high capital expenditures. The operating cash flow to net income ratio is positive, indicating some operational cash generation despite net losses. However, the persistent negative free cash flow suggests ongoing capital strain.50
Neutral
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 130.31M | 128.26M | 103.27M | 185.79M | 544.16M | 590.37M | Gross Profit |
| 43.59M | 41.85M | 27.29M | 50.55M | 81.47M | 74.99M | EBIT |
| -19.68M | -8.84M | -26.08M | 3.46M | -6.86M | -8.30M | EBITDA |
| -10.99M | 35.60M | -35.98M | 1.96M | 13.00M | -7.16M | Net Income Common Stockholders |
| -44.65M | 12.01M | -102.19M | -46.08M | -32.66M | -38.19M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.42M | 8.46M | 19.09M | 1.64M | 1.29M | 360.00K | Total Assets |
| 237.69M | 273.70M | 255.15M | 295.44M | 502.92M | 541.31M | Total Debt |
| 130.34M | 130.36M | 112.74M | 153.09M | 221.40M | 221.12M | Net Debt |
| 124.92M | 121.90M | 93.65M | 151.45M | 220.11M | 220.76M | Total Liabilities |
| 235.46M | 219.80M | 256.99M | 187.30M | 300.14M | 310.27M | Stockholders Equity |
| 2.23M | 53.90M | -1.84M | 108.14M | 202.78M | 231.04M |
| Cash Flow | Free Cash Flow | ||||
| -10.74M | -18.14M | -55.22M | -52.53M | -8.75M | -43.73M | Operating Cash Flow |
| 3.21M | -217.00K | -34.46M | -24.40M | 15.02M | -17.04M | Investing Cash Flow |
| -6.96M | -17.92M | -4.15M | 81.77M | -10.86M | -23.89M | Financing Cash Flow |
| 6.09M | 7.51M | 39.70M | -57.02M | -3.42M | 40.02M |
Lifecore Biomedical Technical Analysis
Positive
6.88
Price Trends
6.57
Positive
6.35
Positive
6.16
Positive
Market Momentum
0.08
Positive
54.22
Neutral
42.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LFCR, the sentiment is Positive. The current price of 6.88 is above the 20-day moving average (MA) of 6.82, above the 50-day MA of 6.57, and above the 200-day MA of 6.16, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 54.22 is Neutral, neither overbought nor oversold. The STOCH value of 42.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LFCR.
Lifecore Biomedical Risk Analysis
Lifecore Biomedical disclosed 37 risk factors in its most recent earnings report. Lifecore Biomedical reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lifecore Biomedical Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $167.73M | ― | -48.14% | ― | -29.69% | -105.88% | |
61 Neutral | $347.92M | ― | -21.63% | ― | -18.56% | 76.88% | |
53 Neutral | $5.25B | 3.24 | -45.38% | 2.81% | 16.79% | -0.06% | |
50 Neutral | $307.28M | ― | -28.76% | ― | 3.79% | 55.19% | |
46 Neutral | $254.36M | ― | -83.58% | ― | 6.88% | -17.54% | |
44 Neutral | $315.86M | ― | 77.48% | ― | 5.29% | -37.31% | |
40 Underperform | $208.11M | ― | 23.44% | ― | 12.99% | 17.78% |
* Healthcare Sector Average
Performance Comparison
LFCR
Lifecore Biomedical
6.88
0.82
13.53%
EBS
Emergent Biosolutions
6.33
0.07
1.12%
ESPR
Esperion
1.12
-1.35
-54.66%
AQST
Aquestive Therapeutics
3.41
0.60
21.35%
TKNO
Alpha Teknova
5.79
4.06
234.68%
DERM
Journey Medical Corp
7.45
2.77
59.19%
Lifecore Biomedical Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Lifecore Biomedical Strengthens Financial Position with Key Moves
Positive
Nov 26, 2024
Lifecore Biomedical, Inc. has strategically amended its asset-based lending revolving credit facility with BMO, extending the term by three years to 2027 and reducing interest rates. This move, alongside a recent $24.3 million private placement, significantly strengthens Lifecore’s financial position and supports its growth strategy in the expanding CDMO market. The company is enhancing its capabilities with new management, advanced manufacturing equipment, and new customer agreements.
Business Operations and Strategy
Lifecore Biomedical Plans Strategic Growth and Transformation
Positive
Nov 21, 2024
Lifecore Biomedical, Inc., a leader in complex injectables, is poised for sustainable growth with a strategic plan to achieve over 12% revenue CAGR and 25%+ EBITDA margins. The company is leveraging its robust capabilities and experienced management team to capitalize on market opportunities, aiming to support $300 million in annual revenue. Lifecore’s transformation into a standalone CDMO with enhanced technical and regulatory strengths positions it as a compelling player in the financial markets.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.