Lightwave Logic (LWLG) AI Stock Analysis

• Market Cap: $151.30M
• Dividend Yield: N/A
• Average Volume (3M): 1.63M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.28
• Revenue Growth: 24.23%
• EPS Growth: 2.59%
• Country: US
• Employees: 31
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals - Specialty
• EPS (TTM): -0.04
• Shares Outstanding: 125,041,160
• 10 Day Avg. Volume: 2,575,665
• 30 Day Avg. Volume: 1,634,487
• PEG Ratio: -1.98
• Price to Book (P/B): 4.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.88
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 114.94
• Enterprise Value/Gross Profit: -337.54
• Enterprise Value/Ebitda: -1.54
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: $1.00 ▼(-17.36%Downside)

The overall stock score reflects significant financial challenges, with persistent losses and liquidity concerns weighing heavily. Technical analysis suggests short-term strength but long-term caution, while negative valuation metrics indicate high risk. Positive corporate events provide some optimism, but sustained operational and financial improvements are essential for long-term value creation.

Lightwave Logic Business Overview & Revenue Model

Company Description

Lightwave Logic, Inc. (LWLG) is a technology company that focuses on the development of advanced photonic devices and electro-optic polymers. These technologies are primarily utilized in the optical networking and telecommunications sectors, aiming to enhance data processing speeds and efficiency. The company's core products include innovative materials and components that integrate into existing systems, improving the performance of fiber-optic communications.

How the Company Makes Money

Lightwave Logic makes money by developing and licensing its proprietary electro-optic polymer technology to telecommunications and data communications companies. These companies use Lightwave Logic's materials to enhance their optical networking equipment, increasing data transmission speeds and lowering energy consumption. The company may also generate revenue through direct sales of its photonic devices to manufacturers and through strategic partnerships with industry players interested in leveraging its technology for product enhancements. Additionally, Lightwave Logic might engage in research and development collaborations that provide funding and further commercialization opportunities.

Lightwave Logic Financial Statement Overview

Summary

Lightwave Logic faces significant financial challenges, characterized by persistent losses and operational inefficiencies. Despite some revenue growth, profitability remains elusive, and cash flow issues suggest liquidity constraints. The company's reliance on equity and manageable debt levels offer some stability, but enhancing operational performance is crucial for long-term sustainability.

Income Statement

The company exhibits a negative net profit margin and EBIT margin, indicating significant losses relative to revenue. Although there is a substantial revenue growth rate from previous periods, the sustained negative gross profit margin highlights ongoing cost challenges. Overall, the income statement reflects financial distress with limited revenue generation and high operational losses.

Balance Sheet

While the debt-to-equity ratio remains low, indicating manageable leverage, the company relies heavily on equity to finance its assets. The return on equity is negative due to consistent net losses, which undermines shareholder value. However, the equity ratio suggests a stable capital structure with a reasonable proportion of assets funded by equity. The balance sheet shows moderate financial stability but significant profitability challenges.

Cash Flow

The cash flow statement reflects negative free cash flow, indicating the company is not generating sufficient cash from operations to cover capital expenditures. Although financing activities provide some liquidity, the operating cash flow to net income ratio is unfavorable, highlighting operational inefficiencies. The cash flow position suggests liquidity concerns and a need for improved operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	88.11K	95.61K	40.50K	0.00	0.00	0.00
Gross Profit	-382.12K	88.21K	37.99K	-1.05M	-878.52K	-784.42K
EBITDA	-20.03M	-20.66M	-19.73M	-16.19M	-17.75M	-5.93M
Net Income	-4.55M	-22.54M	-21.04M	-17.23M	-18.21M	-6.71M
Balance Sheet
Total Assets	35.64M	37.81M	41.78M	29.26M	27.23M	7.37M
Cash, Cash Equivalents and Short-Term Investments	25.05M	27.67M	31.43M	24.10M	23.43M	3.31M
Total Debt	2.73M	2.77M	2.91M	358.25K	536.45K	1.11M
Total Liabilities	4.09M	4.38M	5.35M	1.71M	2.02M	1.59M
Stockholders Equity	31.55M	33.42M	36.43M	27.55M	25.20M	5.78M
Cash Flow
Free Cash Flow	-17.04M	-17.82M	-15.84M	-12.03M	-11.15M	-5.09M
Operating Cash Flow	-14.27M	-15.55M	-12.24M	-10.47M	-10.04M	-4.87M
Investing Cash Flow	-2.77M	-2.70M	-2.96M	-2.21M	-1.12M	-217.98K
Financing Cash Flow	10.57M	14.48M	22.52M	13.35M	31.28M	6.16M

Lightwave Logic Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LWLG, the sentiment is Neutral. The current price of 1.21 is above the 20-day moving average (MA) of 1.19, above the 50-day MA of 1.07, and below the 200-day MA of 1.91, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 51.70 is Neutral, neither overbought nor oversold. The STOCH value of 41.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LWLG.

Lightwave Logic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	HK$16.65B	4.30	-6.43%	5.80%	-3.39%	-61.30%
ABAT	50 Neutral	$135.08M	―	-88.49%	―	―	-42.39%
CTGO	50 Neutral	$251.20M	―	-9999.00%	―	―	18.69%
PLL	50 Neutral	$128.17M	―	-19.11%	―	―	―
LWLG	49 Neutral	$151.30M	―	-62.70%	―	24.23%	2.59%
IONR	40 Underperform	$165.43M	―	-4.74%	―	―	-173.39%

Lightwave Logic Corporate Events

Lightwave Logic Elects New Board Members at Annual Meeting

At the 2025 Annual Meeting of Shareholders held on May 15, Lightwave Logic, Inc. successfully elected Ronald A. Bucchi and Craig Ciesla to its Board of Directors, with their terms extending until the 2028 Annual Meeting. Additionally, shareholders ratified the appointment of Stephano Slack LLP as the independent registered public accounting firm for fiscal year 2025 and approved the company’s 2025 Equity Incentive Plan, reflecting strong shareholder support for the company’s strategic initiatives.