LICT (LICT) AI Stock Analysis

• Market Cap: $222.58M
• Dividend Yield: N/A
• Average Volume (3M): 6.00
• Price to Earnings (P/E): 8.5
• Beta (1Y): <0.01
• Revenue Growth: 8.30%
• EPS Growth: 86.12%
• Country: US
• Employees: 342
• Sector: Communication Services
• Sector Strength: 72
• Industry: Telecommunications Services
• EPS (TTM): 255.73
• Shares Outstanding: 19,188
• 10 Day Avg. Volume: 11
• 30 Day Avg. Volume: 6
• PEG Ratio: 0.27
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.56
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 4.67
• Enterprise Value/Ebitda: 1.57
• 1Y Price Target: $14,908.00
• Price Target Upside: 28.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: $13,234.00 ▲(14.09%Upside)

LICT's overall score is driven by its strong financial performance and attractive valuation. Despite robust profitability and a low P/E ratio indicating potential undervaluation, technical analysis suggests bearish momentum as the stock trades below major moving averages. Cash flow concerns due to high capital expenditures also pose a risk to liquidity.

LICT Business Overview & Revenue Model

Company Description

LICT Corporation, together with its subsidiaries, provides broadband, voice, and video services to residential, commercial, and governmental customers. It offers high speed broadband services, including internet access through copper-based digital subscriber lines, fiber optic facilities, fixed wireless, and cable modems; video services through traditional cable television services and internet protocol television services; voice over internet protocol services; wireless voice communications services; and other telecommunications related services. The company operates in California, Iowa, Kansas, Michigan, New Mexico, Utah, and Wisconsin. As of December 31, 2021, it had a total of 30,687 voice lines; 5,832 miles of fiber optic cable; 11,522 miles of copper cable; and 816 miles of coaxial cable. The company was formerly known as Lynch Interactive Corporation and changed its name to LICT Corporation in March 2007. LICT Corporation was incorporated in 1996 and is based in Rye, New York.

How the Company Makes Money

LICT Corporation generates revenue through its offerings of broadband, voice, and video services. The company makes money by charging subscription fees to its customers for these services. Additionally, LICT benefits from government programs aimed at supporting telecommunications infrastructure in rural areas, which can include subsidies or grants that help enhance its service delivery. The company may also engage in strategic partnerships with other telecommunications providers to expand its service offerings or improve its network capabilities, thereby contributing to its revenue streams.

LICT Financial Statement Overview

Summary

The company demonstrates strong profitability with a healthy gross profit margin of 49.4% and consistent revenue growth at 15.2%. Solid operational efficiency is indicated by EBIT and EBITDA margins of 19.5% and 37.7%, respectively. However, the cash flow management shows challenges due to high capital expenditures leading to negative free cash flow, which could impact liquidity if not addressed.

Income Statement

The company demonstrates a healthy gross profit margin and consistent revenue growth over the years. For the most recent year, the gross profit margin is approximately 49.4%, with net profit margin at 17.4%. The revenue growth rate from 2023 to 2024 is approximately 15.2%, indicating positive business momentum. EBIT and EBITDA margins are robust, at 19.5% and 37.7% respectively, suggesting strong operational efficiency.

Balance Sheet

The balance sheet shows a solid equity base with an equity ratio of 62.8%. The debt-to-equity ratio stands at a manageable 0.32, reflecting prudent leverage. Return on equity is strong at 11.3%, indicating effective use of shareholder funds. However, cash reserves have decreased significantly over the years, which could pose a risk if not managed carefully.

Cash Flow

Operating cash flow is positive, but the company has a negative free cash flow due to high capital expenditures. The operating cash flow to net income ratio is 1.51, showing strong cash generation relative to earnings. However, the free cash flow to net income ratio is negative, indicating potential challenges in liquidity management if capital expenditures continue at this level.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	134.24M	116.51M	115.48M	129.16M	124.17M
Gross Profit	66.28M	56.59M	41.23M	51.29M	52.58M
EBITDA	50.64M	37.46M	44.34M	54.03M	70.18M
Net Income	23.32M	13.39M	17.70M	24.82M	37.27M
Balance Sheet
Total Assets	328.46M	307.04M	287.75M	284.14M	283.38M
Cash, Cash Equivalents and Short-Term Investments	11.38M	11.54M	26.05M	42.47M	67.32M
Total Debt	66.64M	58.51M	38.62M	52.79M	66.78M
Total Liabilities	122.17M	112.35M	92.14M	93.94M	102.78M
Stockholders Equity	206.29M	194.69M	195.60M	190.20M	180.59M
Cash Flow
Free Cash Flow	-16.70M	-7.81M	-8.28M	7.24M	11.15M
Operating Cash Flow	35.22M	29.60M	46.38M	42.82M	44.20M
Investing Cash Flow	-51.85M	-45.49M	-40.76M	-36.59M	-12.58M
Financing Cash Flow	16.46M	1.38M	-21.00M	-31.09M	27.29M

LICT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11600.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LICT, the sentiment is Negative. The current price of 11600 is below the 20-day moving average (MA) of 11834.71, below the 50-day MA of 12188.18, and below the 200-day MA of 13320.99, indicating a bearish trend. The MACD of -138.98 indicates Positive momentum. The RSI at 35.29 is Neutral, neither overbought nor oversold. The STOCH value of 0.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LICT.

LICT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LICT	72 Outperform	$222.58M	8.49	11.15%	―	8.30%	86.12%
SIFY	65 Neutral	$401.54M	―	-5.17%	―	10.20%	―
OOMA	65 Neutral	$332.30M	―	-5.81%	―	7.01%	-84.41%
ATNI	64 Neutral	$271.16M	―	-5.79%	5.58%	-5.46%	-76.33%
SHEN	62 Neutral	$832.18M	―	-4.30%	0.66%	21.68%	-1010.29%
Sector *	62 Neutral	$42.09B	-1.57	-12.06%	2.81%	2.10%	-71.01%
WOW	46 Neutral	$311.13M	―	-26.19%	―	-8.37%	78.45%