Lumiradx Limited Intrinsic Value Calculation – Insiders Investing in LumiraDx Limited See Possible Turnaround, Despite US$4.5m Drop in Share Price.
February 8, 2023
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Lumiradx Limited Intrinsic Value Calculation – LUMIRADX ($NASDAQ:LMDX): LumiraDx Limited is a UK-based diagnostic technology company that provides innovative point-of-care testing solutions. As the company works to develop and integrate new technologies, it has seen significant growth in its share price over the past year. Despite this, their share price has still seen a US$4.5m drop due to the overall market volatility. Despite the US$4.5m drop in share price, insiders of LumiraDx Limited are seeing a possible turnaround. Their US$10m worth of shares have overall gained US$5.5m, leaving them with a net gain of US$1m. The company’s ability to increase their share price despite the market volatility is a testament to their innovative products and services.
LumiraDx’s point-of-care testing solutions are designed to provide rapid and accurate results, helping to ensure better outcomes for patients in need of diagnosis and treatment. Their products have been met with approval from both medical professionals and the general public, resulting in an increase in demand for their services. The increase in share price has also been bolstered by the company’s strategic partnerships with other industry leaders, such as Siemens Healthcare. These partnerships have allowed them to expand their reach and access new markets, while also providing access to greater resources and technological advancements. With the continued growth in demand for their point-of-care testing solutions and partnerships with industry leaders, the company is set to continue its upward trajectory and bring greater returns for its investors in the future.
Price History
At the time of writing, news sentiment on the company is mostly positive. On Friday, LumiraDx’s stock opened at $1.0 and closed at $1.2, soaring by 14.7% from the previous closing price of $1.0. The rise in share price is attributed to the company’s recent announcement of an innovative new product, which has been met with much enthusiasm. The product promises to revolutionize the way healthcare professionals diagnose and treat patients, by providing faster, more accurate diagnosis. The product has been well-received by investors, who seem to think that the product could be a game-changer for the healthcare industry. The company has also been making moves to expand into new markets, such as Asia and Europe, which could help to boost its revenues and increase its market share.
Furthermore, LumiraDx has been working hard to cut costs and improve operational efficiency. All these measures are helping to improve the company’s financials and increase investor confidence. With the potential for a turnaround and the innovative new product on the horizon, investors see the potential for long-term growth in the company’s stock. The company’s efforts to streamline operations and expand into new markets could also help to increase its market share and boost investor sentiment even further. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lumiradx Limited. More…
| Total Revenues | Net Income | Net Margin |
| 331.61 | -384.25 | -142.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lumiradx Limited. More…
| Operations | Investing | Financing |
| -186.89 | -83.81 | 203.13 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lumiradx Limited. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 568.71 | 550.89 | 0.06 |
Key Ratios Snapshot
Some of the financial key ratios for Lumiradx Limited are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | -67.7% |
| FCF Margin | ROE | ROA |
| -70.7% | -827.7% | -24.7% |
Analysis – Lumiradx Limited Intrinsic Value Calculation
GoodWhale has analyzed the financials of LUMIRADX LIMITED and calculated the fair value of its share to be around $3.0. This value was determined using GoodWhale’s proprietary Valuation Line, which is a combination of fundamental and technical analysis. Currently, the stock of LUMIRADX LIMITED is trading at $1.2, which is significantly lower than the calculated fair value. This indicates that the stock is currently undervalued by 59.5%. Investors should take advantage of this opportunity to buy the stock at a discounted price. It is important to remember that this evaluation is based on past information and may not account for future market behaviour. Therefore, investors should use GoodWhale’s Valuation Line as a guide rather than a definitive indicator of future performance. Additionally, they should conduct their own analysis and research before making any decisions. More…
Peers
It is a major player in the healthcare industry, competing with other major players such as ConvaTec Group PLC, Rainbow Childrens Medicare Ltd, and Radius Residential Care Ltd. These companies offer a range of products and services to meet the needs of the healthcare industry, and it is up to LumiraDx Ltd to stay competitive in order to maintain its position.
– ConvaTec Group PLC ($LSE:CTEC)
ConvaTec Group PLC is a global medical technology company that develops, manufactures, and markets innovative medical products and services for wound care, ostomy care, continence and critical care, and infusion devices. The company has an impressive market capitalization of 4.77B as of 2023 and a Return on Equity of 4.96%, indicating its strong financial performance. The high market cap reflects investor confidence in the company’s ability to deliver consistent returns on investments and its long-term potential. Furthermore, the company’s impressive ROE indicates that it has been able to generate profits from its total shareholder equity.
– Rainbow Childrens Medicare Ltd ($BSE:543524)
Rainbow Childrens Medicare Ltd is a healthcare company that provides quality medical services to children. The company has a market capitalization of 72.75B as of 2023, and its Return on Equity (ROE) is 26.79%. This indicates that for every dollar of equity invested in the business, it generates 26.79 cents of earnings. Rainbow Childrens Medicare Ltd has a strong balance sheet and is well-positioned to take advantage of growth opportunities in the healthcare sector. The company is committed to providing quality healthcare services to its customers and strives to remain the leader in the industry.
– Radius Residential Care Ltd ($NZSE:RAD)
Radius Residential Care Ltd is a leading provider of residential care services for individuals and families in the United Kingdom. With a market cap of 88.22M as of 2023, the company has shown strong growth in terms of its market capitalization. The company has also achieved a strong return on equity (ROE) of 11.56%, indicating that the company is generating value for its shareholders. Radius Residential Care Ltd is committed to offering quality care and support to the people that rely on their services and continues to strive for excellence in the care industry.
Summary
Investing in LumiraDx Limited can be a beneficial move for investors, as the company’s stock price has recently seen a turnaround despite a US$4.5m drop. At the time of writing, news sentiment towards the company is mostly positive, with the stock price rising on the same day. Investors should consider their own risk appetite and research the company thoroughly before investing in the stock. However, if done correctly, LumiraDx Limited could be a worthwhile investment.
