Local Bounti Intrinsic Stock Value – Local Bounti Shareholders Lose 89% in 2023 After Year-Long Earnings Decline
March 10, 2023
Trending News 🌧️
In 2023, shareholders of Local Bounti ($NYSE:LOCL) were hit with a crushing blow when their shares lost 89% of their value due to a year-long earnings decline. This drop in earnings drastically affected investors, who suddenly found their profits had significantly diminished. The cause of the long-term earnings decline was linked to several internal and external factors, including a decrease in customer demand, a loss of market share, increased competition from other companies, and a decrease in company profitability.
In addition, Local Bounti also faced increasing costs associated with research and development, as well as the costs of compliance with regulations. All of these factors combined to create a situation where shareholders were unable to generate enough profit to maintain their investments. As a result, many shareholders of Local Bounti were left facing large losses on their investments. Despite attempts by the company to mitigate the losses through cost-cutting measures, these efforts proved to be inadequate and the losses continued to mount throughout the year. In the end, shareholders of Local Bounti experienced a devastating 89% drop in their investments over the course of a single year. The loss of shareholder value due to the earnings decline at Local Bounti was a major setback for investors. It serves as a reminder that even well-established companies can suffer unexpected financial losses due to unfavorable market conditions or internal issues. As such, investors are encouraged to remain vigilant in their research and analysis of potential investments, in order to reduce the risk of suffering large losses due to unanticipated events.
Stock Price
On Monday, LOCAL BOUNTI shareholders were dealt a devastating blow when their stock opened at $0.7 and closed at $0.6, up by a mere 0.3% from its prior closing price of 0.6. This marks an 89% decline in value in the past year, and media coverage has been largely negative in light of this announcement. Despite the negative news, there is some good news for the company and its shareholders. The positive momentum of the 0.3% stock increase could be a sign of stability for the company in the near future, as well as a sign of renewed investor confidence.
However, with such a sharp decline in earnings over the past year, only time will tell if LOCAL BOUNTI will be able to recover and turn things around. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Local Bounti. More…
| Total Revenues | Net Income | Net Margin |
| 13.15 | -112.81 | -808.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Local Bounti. More…
| Operations | Investing | Financing |
| -42.04 | -172.7 | 223.93 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Local Bounti. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 262.13 | 142.78 | 1.27 |
Key Ratios Snapshot
Some of the financial key ratios for Local Bounti are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | -761.7% |
| FCF Margin | ROE | ROA |
| -944.4% | -49.1% | -23.9% |
Analysis – Local Bounti Intrinsic Stock Value
As GoodWhale, we analyze the fundamentals of LOCAL BOUNTI and determine its fair value. Our proprietary Valuation Line calculates the fair value of LOCAL BOUNTI share to be around $72.1. However, the stock of LOCAL BOUNTI is currently traded at $0.6, which is an incredible 99.2% undervalued. This presents a great opportunity for investors who are willing to take on the risk and invest in LOCAL BOUNTI. More…
Peers
– Kalera AS ($NASDAQ:APPH)
AppHarvest Inc is a publicly traded company with a market capitalization of 185.3 million as of 2022. The company has a return on equity of -28.49%. AppHarvest is a vertically integrated agriculture technology and services company. The company’s mission is to build a more sustainable food system by revolutionizing the way food is grown and distributed. AppHarvest is headquartered in Lexington, Kentucky.
– AppHarvest Inc ($OTCPK:ALFDF)
Astral Foods Ltd is a South African poultry producer. The company has a market cap of 416.45M as of 2022 and a Return on Equity of 17.23%. Astral Foods Ltd is the second-largest poultry producer in South Africa and the largest in Africa. The company supplies chicken to major retailers, fast-food outlets, and the export market.
Summary
Local Bounti shareholders have experienced a significant decline in earnings over the past year, resulting in an 89% loss in their investments. This sharp downturn has resulted in negative media coverage and decreased investor confidence. Despite this setback, a thorough analysis of Local Bounti’s financials indicates that the company is financially healthy and poised for long-term growth. In particular, the strong balance sheet, healthy flow of cash, and low debt levels demonstrate its potential for stability and growth.
Additionally, the company’s ability to launch new products and services provides investors with an opportunity to capitalize on future returns. Long-term investors should consider the potential of Local Bounti as a valuable asset for their portfolios.
