Luminar Media Group (LRGR) AI Stock Analysis

• Market Cap: $28.65M
• Dividend Yield: N/A
• Average Volume (3M): 40.00K
• Price to Earnings (P/E): 34.0
• Beta (1Y): 1.19
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: N/A
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Shell Companies
• EPS (TTM): >-0.01
• Shares Outstanding: 52,093,440
• 10 Day Avg. Volume: 32,276
• 30 Day Avg. Volume: 40,001
• PEG Ratio: -0.52
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 2.51
• P/FCF Ratio: -1.12
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 4.06
• Enterprise Value/Gross Profit: 5.23
• Enterprise Value/Ebitda: 9.13
• 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: 60 Neutral
• Price Target: $0.74 ▼(-3.77% Downside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is held back primarily by weak cash generation (negative operating and free cash flow despite reported profitability) and some balance-sheet leverage risk. These are partly offset by strong recent reported margins/revenue growth and a technically constructive uptrend, while valuation remains demanding with a high P/E and no dividend yield provided.

Positive Factors

High margins & revenue growth

Sustained high gross and operating margins alongside strong revenue growth indicate a scalable, high‑margin business model with pricing leverage and low variable costs. Over several quarters this supports durable profitability if customer retention and incremental sales persist.

Improved balance sheet

Restoring positive equity materially reduces solvency risk and improves financial flexibility. A stronger balance sheet supports capital formation, lowers short‑term default risk, and gives management runway to execute multi‑quarter growth plans or raise capital on better terms.

High trailing ROE

A very high trailing ROE implies efficient use of limited equity capital and strong conversion of earnings to shareholder value. If maintained through consistent operations, high ROE supports attractive long‑term returns and efficient reinvestment of cash into growth initiatives.

Negative Factors

Weak cash conversion

Negative operating and free cash flow despite reported net income signals poor earnings quality and cash conversion. Over months this forces reliance on external financing, increases dilution or debt risk, and constrains the company’s ability to self‑fund growth or absorb shocks.

Rising leverage / small asset base

Higher leverage combined with a modest asset base raises financial fragility: a smaller cushion amplifies operational shocks and debt servicing demands. This limits strategic flexibility and heightens refinancing and default risk if cash flows do not improve within quarters.

Profitability volatility / prior losses

A sharp step‑up in profitability after multi‑year losses suggests earnings may be cyclical or one‑off rather than structurally entrenched. Such volatility complicates forecasting and reduces confidence that current margins will persist absent clear, durable operational or market shifts.

Luminar Media Group Business Overview & Revenue Model

Company Description

Luminar Media Group, Inc., a development stage company, focuses on providing professional services to the music recording industry in the United States. It engages in the production of recordings; management of the manufacture of CDs and Internet uploading of music files; and management of the manufacture of promotional merchandise, such as T-shirts and caps. The company was formerly known as Golden Edge Entertainment, Inc. and change its name to Luminar Media Group, Inc. in August 2016. Luminar Media Group, Inc. was founded in 2010 and is based in Toronto, Canada.

How the Company Makes Money

Luminar Media Group Financial Statement Overview

Summary

Income statement shows a strong TTM turnaround with high margins and ~42% revenue growth, but cash flow is a major red flag with negative operating and free cash flow (~-$2.0M) that does not match reported profitability. Balance sheet is improved with positive equity, though leverage has risen, adding funding and durability risk if cash conversion doesn’t improve.

Income Statement

TTM (Trailing-Twelve-Months) shows a sharp step-up in scale and profitability: revenue of ~$6.3M with strong gross margin (~77.7%) and solid operating profitability (EBIT margin ~44.3%), translating to a healthy net margin (~29.2%). Growth is also very strong (revenue growth ~42%). The key weakness is volatility versus prior annual periods, where 2024 and earlier were loss-making with negative margins, suggesting the current profitability may be less proven and potentially less stable.

Balance Sheet

The balance sheet improved meaningfully versus earlier years (which showed negative equity), with TTM (Trailing-Twelve-Months) stockholders’ equity of ~$3.7M against total debt of ~$2.7M (debt-to-equity ~0.73). That said, leverage has risen versus 2024 (debt-to-equity ~0.42), and the business has a relatively small asset base (~$7.4M), which can increase sensitivity to operating swings. Return on equity is very high in TTM (Trailing-Twelve-Months), but given the sharp turnaround from prior losses, it may reflect a rebound effect rather than a long-running, steady return profile.

Cash Flow

Cash generation is the weakest area: TTM (Trailing-Twelve-Months) operating cash flow is negative (~-$2.0M) and free cash flow is also negative (~-$2.0M), with free cash flow declining versus the prior period (growth ~-24.9%). This is a notable mismatch against reported profitability (positive net income in TTM), indicating earnings are not currently converting into cash and the company may require external funding or balance-sheet capacity to sustain operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.27M	881.63K	45.30K	42.99K	0.00	0.00
Gross Profit	4.87M	0.00	-35.06K	42.99K	0.00	0.00
EBITDA	2.79M	-338.00K	7.89K	-30.52K	158.84K	48.30K
Net Income	1.83M	-251.00K	-212.00K	-273.00K	-95.55K	-169.00K
Balance Sheet
Total Assets	7.40M	3.18M	368.00K	33.68K	779.00	81.58K
Cash, Cash Equivalents and Short-Term Investments	540.98K	590.36K	16.12K	19.00K	0.00	0.00
Total Debt	2.72M	679.08K	406.49K	299.85K	165.25K	170.25K
Total Liabilities	2.78M	1.72M	525.85K	569.49K	201.17K	202.76K
Stockholders Equity	3.71M	1.63M	-157.84K	-535.81K	-200.39K	-121.18K
Cash Flow
Free Cash Flow	-1.98M	-1.97M	-576.78K	-53.42K	0.00	-140.25K
Operating Cash Flow	-1.97M	-1.97M	-576.78K	-53.42K	0.00	-140.25K
Investing Cash Flow	-224.32K	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	2.22M	2.56M	573.89K	72.42K	0.00	140.25K

Luminar Media Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UMAC	64 Neutral	$494.13M	-4.10	-57.08%	―	133.20%	-253.98%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LRGR	60 Neutral	$28.65M	34.02	―	―	―	―
ANGX	45 Neutral	$570.97M	-3.09	-221.24%	―	―	―