Luna Innovations Stock Intrinsic Value – LUNA INNOVATIONS on the Rebound After Difficult Period
December 14, 2023
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LUNA INNOVATIONS ($NASDAQ:LUNA), a provider of advanced technology solutions, has been on the rebound after a difficult period. The past few years have been a challenge for Luna Innovations as they faced numerous issues ranging from declining sales to customer attrition.
However, the company has demonstrated resilience in the face of adversity and has made significant progress over the recent period. It recently announced a restructuring plan that includes cost-saving measures and operational efficiencies. Under this plan, the company has been able to reduce its operating costs significantly and improve its capital structure. The company has also made several strategic acquisitions to strengthen its position in the market. These acquisitions have allowed Luna Innovations to expand its portfolio of products and services and access new markets.
In addition, the company is investing heavily in research and development to ensure that it remains at the forefront of innovation and technology. Overall, Luna Innovations’ management is confident that the worst is behind them and that their current strategy will help them regain their former glory as the premier provider of advanced technologies. With their focus on cost-savings measures, strategic acquisitions, and research & development, they are poised to make a strong comeback in the near future.
Market Price
LUNA INNOVATIONS, a tech firm based in Virginia, experienced a difficult period recently. However, the company showed signs of recovery on Wednesday, with its stock opening at $6.2 and closing at $6.5, a 5.0% increase from its previous closing price of 6.2. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Luna Innovations. More…
| Total Revenues | Net Income | Net Margin |
| 116.61 | -2.12 | -1.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Luna Innovations. More…
| Operations | Investing | Financing |
| -13.42 | -1.5 | 12.28 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Luna Innovations. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 165.09 | 70.48 | 2.79 |
Key Ratios Snapshot
Some of the financial key ratios for Luna Innovations are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.2% | -65.8% | 0.4% |
| FCF Margin | ROE | ROA |
| -13.6% | 0.3% | 0.2% |
Analysis – Luna Innovations Stock Intrinsic Value
At GoodWhale, we have been analysing the financials of LUNA INNOVATIONS and our proprietary Valuation Line has revealed the fair value of this stock to be around $8.9. Currently, LUNA INNOVATIONS stock is traded at $6.5, which is undervalued by 27.2%. We believe that this presents an opportunity to investors to buy a quality stock at a discounted price. Our research is supported by LUNA INNOVATIONS’ strong fundamentals, which indicate that the stock should be trading at a higher price than its current market value. More…
Peers
Headquartered in Roanoke, Virginia, Luna has about 200 employees and operates in over 30 countries. Its products are used in a variety of industries, including aerospace, automotive, biomedical, defense, and telecommunications. Luna’s primary competitors are Gooch & Housego PLC, Viscom AG, and Wuhan Raycus Fiber Laser Technologies Co Ltd. These companies are all based in Europe and Asia, respectively.
– Gooch & Housego PLC ($LSE:GHH)
Gooch & Housego PLC is a leading international provider of advanced photonic solutions. They design, manufacture and supply optical components, systems and instrumentation to meet the needs of their customers worldwide. Gooch & Housego has a market cap of 119.45M as of 2022 and a Return on Equity of 3.16%. The company is headquartered in the United Kingdom and has operations in the United States, Europe and Asia.
– Viscom AG ($LTS:0GED)
Vcom AG is a German company that provides software for the visual inspection of products. Its products are used in a variety of industries, including automotive, electronics, food and beverage, and pharmaceuticals. The company has a market cap of 71.97 million as of 2022 and a return on equity of 4.98%.
– Wuhan Raycus Fiber Laser Technologies Co Ltd ($SZSE:300747)
Raycus is a Chinese company that manufactures fiber lasers. It is headquartered in Wuhan, China and was founded in 2007. The company went public on the Shenzhen Stock Exchange in 2014. As of 2022, Raycus has a market cap of 15.78B and a ROE of 2.49%. The company’s products are used in a variety of applications including cutting, welding, and marking.
Summary
Luna Innovations Incorporated (LUNA) is a publicly traded company that develops and manufactures products and technologies for the aerospace, automotive, medical, and telecommunications markets. Recently, LUNA’s stock price experienced a surge following the announcement that their losses had been narrowed from the previous quarter. Analysts have attributed this increase to the company’s cost-cutting measures, which were implemented in order to increase profitability.
Additionally, investors have taken heart in the fact that LUNA has refocused its efforts on higher margin opportunities in the aerospace and medical markets. These improved fundamentals have lead investors to believe that LUNA is on track for long-term growth.
