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Lightpath Technologies (LPTH)
NASDAQ:LPTH
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Lightpath Technologies
(NASDAQ:LPTH)
44Neutral
Positive Factors
Acquisition Impact
The acquisition of G5 Infrared is seen as a positive move, adding scale and complementing LightPath’s product portfolio.
Defense Contracts
LightPath recently received qualification from Lockheed for the missile program and can now start delivering flight-worthy hardware for implementation.
Revenue Growth
The G5 acquisition is expected to result in a revenue increase to $55M in the 12 months following the acquisition.
Negative Factors
Capital Structure
The stock's reaction, declining 19%, is believed to be due to the changes in the capital structure rather than the acquisition or financial results.
Export Restrictions
Softer revenue was due to new restrictions in the exporting germanium from China, which were announced in December and are likely to remain a headwind near term.
Financial Results
LightPath's recent financial results showed revenue and earnings that were below estimates.
Lightpath Technologies (LPTH) vs. S&P 500 (SPY)
Market Cap
$75.10M
Dividend YieldN/A
Average Volume (3M)130.55K
Price to Earnings (P/E)―
Beta (1Y)0.70
Revenue Growth-1.01%
EPS Growth-72.93%
CountryUS
Employees304
SectorTechnology
Sector Strength51
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.23
Shares Outstanding40,160,767
10 Day Avg. Volume138,515
30 Day Avg. Volume130,552
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.86
Price to Cash Flow (P/CF)-13.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.00Price Target Upside113.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Lightpath Technologies Business Overview & Revenue Model
Company DescriptionLightPath Technologies, Inc. designs, develops, manufactures, and distributes optical components and assemblies. The company offers precision molded glass aspheric optics, molded and diamond-turned infrared aspheric lenses, and other optical components used to produce products that manipulate light. Its products are used in defense products, medical devices, laser aided industrial tools, automotive safety applications, barcode scanners, optical data storage, hybrid fiber coax datacom, telecommunications, machine vision and sensors, and other industries. The company sells its products directly to customers in North America, Europe, and Asia, as well as through distributors and catalogs in the United States and internationally. LightPath Technologies, Inc. was founded in 1985 and is headquartered in Orlando, Florida.
How the Company Makes MoneyLightpath Technologies generates revenue through the sale of its optical components and assemblies to a diverse set of industries, including telecommunications and defense. The company earns money by manufacturing and distributing standard and custom optical products that meet specific customer requirements. Key revenue streams include product sales, custom engineering services, and long-term supply agreements with major industry players. Strategic partnerships with technology companies and government agencies also play a significant role in contributing to its earnings, facilitating access to new markets and driving product innovation.
Lightpath Technologies Financial Statement Overview
Summary
Lightpath Technologies is facing financial challenges with declining revenues, persistent losses, and negative cash flow. While there is some stability in equity financing, high leverage and negative profitability metrics pose significant risks, necessitating improvements in operational efficiencies and revenue growth.Income Statement
Lightpath Technologies' income statement reveals a challenging financial environment with declining revenues and persistent losses. Over the TTM (Trailing-Twelve-Months), the company reported negative gross and net profit margins, indicating a lack of profitability. Revenue has been on a downward trajectory, decreasing from $35.56M in 2022 to $32.16M in the TTM. This decline, coupled with negative EBIT and EBITDA margins, highlights operational inefficiencies and cost management issues.40
Negative
Balance Sheet
The balance sheet of Lightpath Technologies shows a moderate financial stability. The debt-to-equity ratio has slightly improved but remains a point of concern due to relatively high leverage, with total debt at $12.25M against $26.70M in stockholders' equity as of TTM. The equity ratio of 58.25% suggests a fair amount of assets are financed by equity, providing some cushion. However, the return on equity is negative, reflecting the company's struggles to generate returns on shareholder investment.55
Neutral
Cash Flow
The cash flow analysis for Lightpath Technologies indicates significant cash management challenges. The company has experienced negative free cash flow growth, dropping from -$1.66M in 2023 to -$3.63M in the TTM, exacerbating liquidity concerns. Operating cash flow is also negative, underscoring inefficiencies in core operations. These issues weaken the company's ability to finance new investments or service debt without external funding.45
Neutral
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 32.16M | 31.73M | 32.93M | 35.56M | 38.46M | 34.97M | Gross Profit |
| 8.47M | 8.63M | 11.07M | 11.81M | 13.45M | 13.84M | EBIT |
| -8.64M | -7.83M | -3.55M | -2.44M | -2.03M | 2.15M | EBITDA |
| -4.78M | -3.70M | -355.00K | 1.17M | 1.47M | 5.46M | Net Income Common Stockholders |
| -9.19M | -8.01M | -4.05M | -3.54M | -3.19M | 866.93K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 542.89K | 3.48M | 4.69M | 5.51M | 6.77M | 5.39M | Total Assets |
| 6.90M | 48.09M | 53.54M | 50.71M | 54.61M | 47.57M | Total Debt |
| 1.58M | 10.36M | 12.38M | 14.73M | 14.23M | 7.63M | Net Debt |
| 1.04M | 6.88M | 7.70M | 9.22M | 7.46M | 2.24M | Total Liabilities |
| 3.99M | 17.89M | 17.58M | 20.98M | 21.03M | 13.01M | Stockholders Equity |
| 2.91M | 30.20M | 35.95M | 29.73M | 33.58M | 34.57M |
| Cash Flow | Free Cash Flow | ||||
| -3.63M | -1.66M | -5.89M | -162.49K | 1.57M | 1.29M | Operating Cash Flow |
| -2.77M | 521.04K | -2.81M | 1.46M | 4.73M | 3.73M | Investing Cash Flow |
| -972.91K | -2.67M | -2.87M | -1.63M | -3.16M | -2.26M | Financing Cash Flow |
| 1.23M | -1.47M | 7.46M | -636.17K | -843.43K | -621.71K |
Lightpath Technologies Technical Analysis
Negative
1.87
Price Trends
2.34
Negative
2.49
Negative
1.94
Negative
Market Momentum
-0.15
Negative
43.65
Neutral
28.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPTH, the sentiment is Negative. The current price of 1.87 is below the 20-day moving average (MA) of 1.99, below the 50-day MA of 2.34, and below the 200-day MA of 1.94, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 43.65 is Neutral, neither overbought nor oversold. The STOCH value of 28.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LPTH.
Lightpath Technologies Risk Analysis
Lightpath Technologies disclosed 31 risk factors in its most recent earnings report. Lightpath Technologies reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lightpath Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
57 Neutral | $20.06B | 9.61 | -11.19% | 2.76% | 5.41% | -24.85% | |
46 Neutral | $72.36M | ― | -3.99% | ― | -12.04% | -39.46% | |
45 Neutral | $80.42M | ― | -18.39% | ― | -5.12% | -900.38% | |
44 Neutral | $75.10M | ― | -30.42% | ― | -1.01% | -72.93% | |
44 Neutral | $95.45M | ― | -82.60% | ― | 20.13% | 29.26% | |
39 Underperform | $32.67M | ― | -42.84% | ― | 46.83% | 31.40% |
* Technology Sector Average
Performance Comparison
LPTH
Lightpath Technologies
1.87
0.39
26.35%
QUIK
QuickLogic
4.95
-7.84
-61.30%
SOL
Emeren Group
1.27
-0.59
-31.72%
REFR
Research Frontiers
0.97
-0.49
-33.56%
TROO
TROOPS, Inc.
0.57
-0.65
-53.28%
WBX
Wallbox
0.38
-1.00
-72.46%
Lightpath Technologies Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -46.72% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a significant strategic acquisition and potential for substantial revenue growth through large defense contracts, which are positive aspects. However, challenges such as supply chain disruptions, decreased gross profit, increased operating expenses, and a higher net loss were also significant.Highlights
Strategic Acquisition of G5 Infrared
LightPath Technologies announced the acquisition of G5 Infrared, which is expected to be a transformative event for the company, aligning perfectly with its strategic transition from a pure play optical components manufacturer to a solutions and subsystem provider.
Potential Large Contracts
Post-acquisition, G5 Infrared is expected to secure several large defense programs moving into low rate initial production (LRIP) and eventually full-scale production, potentially generating $21 million to $27 million in revenue in the next 24 months.
Record Revenue Expectations
The combined revenue of LightPath and G5 Infrared is expected to exceed $55 million in the next 12 months, a significant increase from previous revenues.
Advancements in Imaging Solutions
LightPath's transition to high-ASP products is evident as they move from selling lenses at single dollars to advanced cameras costing up to $500,000, indicating higher value creation and market position.
Lowlights
Supply Chain Disruptions
China's export restrictions, particularly on germanium, have impacted LightPath's ability to ship over $750,000 worth of products, causing delays.
Decreased Gross Profit and Increased Operating Expenses
Gross profit decreased by 11% to $1.9 million, and operating expenses increased by 12% due to higher legal and consulting fees and increased sales and marketing spend.
Net Loss Increase
Net loss for the quarter increased to $2.6 million from $1.7 million in the same quarter of the previous fiscal year, driven by lower gross profit and increased SG&A expenses.
EBITDA Loss
EBITDA loss was $1.5 million, compared to a loss of $0.5 million for the same period of the prior fiscal year, primarily due to lower gross profit and increased expenses.
Company Guidance
In the recent earnings call, LightPath Technologies provided key guidance and metrics reflecting significant strategic developments. The company announced the acquisition of G5 Infrared, a transformative move expected to increase their revenue to over $55 million in the next 12 months, compared to G5's unaudited revenue of $15 million in 2024. LightPath's transition from optical components to a systems supplier is highlighted by increasing their product average sales prices (ASP) from single digits to five-digit figures, with G5's cooled infrared cameras priced between $50,000 to $500,000. The company also foresees potential revenue from programs with Lockheed Martin and other defense projects, projecting growth rates that could see annual revenue contributions of $21 million to $27 million from G5 alone. Despite supply chain disruptions due to China's export restrictions, LightPath remains optimistic about fulfilling backlog orders and capitalizing on new market opportunities. The acquisition is expected to enhance gross margins and contribute to achieving a long-term goal of 15% EBITDA margins.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.