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Luminar Technologies (LAZR)
NASDAQ:LAZR
RESEARCH TOOLSreports
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Luminar Technologies
(NASDAQ:LAZR)
27Underperform
Positive Factors
Partnerships and Collaborations
Volvo ramp is unfolding at an accelerating pace with Luminar lidars becoming standard equipment in future Volvo offerings, while engagements with other OEMs are expanding including a new development contract with a leading Japanese OEM.
Product Adoption
Volvo has elected to add Luminar's LiDAR sensors on an upcoming model as standard equipment, indicating a major endorsement from a renowned automaker.
Negative Factors
Financial Performance
3Q revenue and gross profit tracked below expectations, with top-line softness attributed to greater than anticipated headwinds.
Luminar Technologies (LAZR) vs. S&P 500 (SPY)
Market Cap
$155.16M
Dividend YieldN/A
Average Volume (3M)1.62M
Price to Earnings (P/E)―
Beta (1Y)2.31
Revenue Growth27.61%
EPS Growth40.95%
CountryUS
Employees800
SectorConsumer Cyclical
Sector Strength49
IndustryVehicles
Share Statistics
EPS (TTM)-13.35
Shares Outstanding26,823,534
10 Day Avg. Volume1,288,879
30 Day Avg. Volume1,617,095
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.21
Price to Cash Flow (P/CF)-0.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.00Price Target Upside5.71% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering2
Luminar Technologies Business Overview & Revenue Model
Company DescriptionLuminar Technologies, Inc. (LAZR) is a leading autonomous vehicle sensor and software company that specializes in developing advanced lidar technology. Founded in 2012 and headquartered in Orlando, Florida, Luminar focuses on enhancing vehicle safety and enabling autonomous driving solutions. Its core products include high-performance lidar sensors and perception software, which are designed to provide vehicles with precise and reliable real-time 3D mapping and object detection capabilities.
How the Company Makes MoneyLuminar Technologies generates revenue primarily through the sale of its lidar sensors and related software solutions to automotive manufacturers and suppliers. The company's key revenue streams include direct sales of its lidar products for integration into autonomous vehicles and advanced driver-assistance systems (ADAS). Luminar also collaborates with automotive OEMs and technology companies to integrate its technology into their platforms, sometimes resulting in long-term supply agreements and strategic partnerships. Additionally, Luminar may generate revenue through licensing its perception software and offering engineering services to customize its lidar systems for specific customer needs.
Luminar Technologies Financial Statement Overview
Summary
Luminar Technologies is experiencing significant revenue growth, yet continues to face profitability challenges with negative profit margins and high leverage. The balance sheet indicates financial instability with negative equity, and cash flow issues persist despite financing activities.Income Statement
Luminar Technologies has experienced significant revenue growth over the years, with the most recent TTM (Trailing-Twelve-Months) showing an increase in revenue from $69.78 million in 2023 to $75.03 million in 2024. However, the company continues to report negative gross profit margins and net profit margins, indicating high operational costs relative to revenue. The continued negative EBIT and EBITDA margins also highlight persistent profitability challenges.20
Very Negative
Balance Sheet
The balance sheet reveals high leverage, with a negative stockholders' equity and a debt-to-equity ratio that cannot be calculated due to negative equity, indicating financial instability. The company's total liabilities exceed its assets, and the equity ratio is negative due to the deficit in stockholders' equity, raising concerns about solvency.15
Very Negative
Cash Flow
The cash flow statement indicates consistent negative free cash flow, which increased slightly from -$269.22 million in 2023 to -$272.50 million in the latest TTM period. The operating cash flow to net income ratio shows that cash outflows from operations are significantly higher than net losses, pointing to cash flow challenges. However, the company has managed to secure financing activities to support its cash position.25
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 75.03M | 69.78M | 40.70M | 31.94M | 13.95M | 12.60M | Gross Profit |
| -59.74M | -72.69M | -60.28M | -14.15M | -11.00M | -4.05M | EBIT |
| -502.45M | -563.31M | -442.40M | -214.55M | -86.88M | -62.62M | EBITDA |
| -320.31M | -530.39M | -425.57M | -239.85M | -364.90M | -94.86M | Net Income Common Stockholders |
| -377.32M | -571.27M | -445.94M | -237.99M | -365.18M | -96.96M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 289.82M | 289.82M | 488.87M | 792.12M | 485.65M | 33.74M | Total Assets |
| 512.37M | 512.37M | 687.33M | 883.54M | 510.35M | 51.86M | Total Debt |
| 660.66M | 660.66M | 635.13M | 619.46M | 893.00K | 9.64M | Net Debt |
| 521.57M | 521.57M | 565.58M | 289.48M | -208.05M | -17.44M | Total Liabilities |
| 737.12M | 737.12M | 713.73M | 685.55M | 361.61M | 263.59M | Stockholders Equity |
| -224.75M | -224.75M | -26.41M | 197.99M | 148.74M | -211.73M |
| Cash Flow | Free Cash Flow | ||||
| -272.50M | -269.22M | -226.30M | -154.85M | -77.84M | -61.69M | Operating Cash Flow |
| -267.47M | -247.30M | -208.23M | -148.42M | -75.64M | -60.20M | Investing Cash Flow |
| 155.22M | 236.63M | 27.99M | -194.19M | -271.79M | -7.78M | Financing Cash Flow |
| 150.21M | 80.20M | -79.35M | 463.59M | 529.85M | 85.46M |
Luminar Technologies Technical Analysis
Negative
4.73
Price Trends
5.98
Negative
8.24
Negative
13.50
Negative
Market Momentum
-0.37
Positive
39.48
Neutral
27.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LAZR, the sentiment is Negative. The current price of 4.73 is below the 20-day moving average (MA) of 5.62, below the 50-day MA of 5.98, and below the 200-day MA of 13.50, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 39.48 is Neutral, neither overbought nor oversold. The STOCH value of 27.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LAZR.
Luminar Technologies Risk Analysis
Luminar Technologies disclosed 72 risk factors in its most recent earnings report. Luminar Technologies reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Luminar Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $12.39B | 10.47 | 1.07% | 3.58% | 1.64% | -18.33% | |
56 Neutral | $132.42M | ― | -81.61% | ― | 339.99% | 29.91% | |
55 Neutral | $184.37M | ― | -0.49% | 0.62% | 23.99% | -109.30% | |
55 Neutral | $231.73M | ― | -103.99% | ― | 277.53% | 1.16% | |
44 Neutral | $380.75M | ― | -61.40% | ― | 51.14% | 79.30% | |
43 Neutral | $10.63M | ― | -160.65% | ― | -86.20% | 67.94% | |
27 Underperform | $155.16M | ― | 146.24% | ― | 27.61% | 40.95% |
* Consumer Cyclical Sector Average
Performance Comparison
LAZR
Luminar Technologies
4.73
-24.07
-83.58%
LAKE
Lakeland Industries
20.15
4.80
31.27%
MVIS
Microvision
1.09
-1.24
-53.22%
INVZ
Innoviz Technologies
0.68
-0.72
-51.43%
OUST
Ouster
7.85
2.79
55.14%
LIDR
AEye Inc
0.57
-0.60
-51.28%
Luminar Technologies Earnings Call Summary
Earnings Call Date: Nov 11, 2024 | % Change Since: -69.08% | Next Earnings Date: Mar 20, 2025
Earnings Call Sentiment Neutral
The call demonstrated significant business achievements, especially with Volvo and technology advancements like Luminar Halo. However, there were challenges in revenue and gross loss due to a slower production ramp and contract renegotiations. Despite these challenges, Luminar's strategic partnerships and cost reductions position the company favorably for future growth.Highlights
Volvo Partnership Expansion
Volvo is ramping up the EX90 and has begun global deliveries. Luminar will be featured as standard equipment on the next Volvo model, indicating strong execution and partnership expansion.
New Advanced Development Contract
Luminar signed a new development contract with a Japanese OEM for next-gen assisted driving systems, including paid development for hardware, software, and vehicle integration.
Luminar Halo Progress
Successfully generated the first Point Cloud with Luminar Halo, showcasing increased performance at a reduced cost and size compared to the Iris family, with a launch expected in 2026.
Cost Reduction and Financial Improvement
Achieved over $20 million improvement in free cash flow, the largest in Luminar's history, due to aggressive cost reduction measures.
Insurance Business Advancements
Finalized a partnership with a primary insurance partner and designed the customer experience for an upcoming insurance app, with initial policies expected early next year.
Lowlights
Revenue Decline
Q3 revenue was $15.5 million, down 7% quarter over quarter and 9% year over year, primarily due to the renegotiation of a large, non-automotive contract.
Gross Loss Increase
Reported a gross loss of $14 million on a GAAP basis, impacted by supply chain charges and inventory write-downs due to a slower series production ramp.
Workforce Reduction
Reduced workforce by approximately 30% since the beginning of the year as part of cost-saving measures.
Convertible Debt Challenges
Complexity in accounting for convertible debt transactions may require a filing extension for the 10-Q.
Company Guidance
During Luminar's Q3 2024 earnings call, significant business updates were shared, highlighting various metrics and milestones. The company successfully ramped up Volvo's EX90 deliveries, reaching a four-figure number and progressing towards five figures, while announcing that Volvo will feature Luminar's technology as standard on their next vehicle model. Luminar's next-generation product, Luminar Halo, demonstrated increased performance capabilities with a first Point Cloud generation and is set for a 2026 launch. Financially, Luminar saw over $20 million improvement in free cash flow this quarter, marking the largest in its history, and executed cost-reduction measures aimed at saving $80 million annually. Revenue for the quarter was $15.5 million, down 7% quarter-over-quarter, primarily due to a renegotiated contract. The company ended the quarter with approximately $249 million in cash and liquidity, providing a runway to at least the end of 2026.Luminar Technologies Corporate Events
Executive/Board Changes
Luminar Technologies Announces Executive Leadership Change
Neutral
Dec 12, 2024
Luminar Technologies announced that Alan Prescott, the Chief Legal Officer and Secretary, will step down from his role effective December 12, 2024, as part of a mutual agreement. The transition involves a separation agreement that includes a severance package with a $300,000 payment and 55,000 restricted stock units contingent on performance, highlighting a strategic change in the company’s executive team.
Executive/Board ChangesLegal ProceedingsStock Split
Luminar Technologies Announces Board Changes and Legal Settlement
Neutral
Nov 15, 2024
Luminar Technologies has appointed Dominick Schiano to its Board of Directors, leveraging his expertise in strategic business transformation. Additionally, the Board approved a reverse stock split at a 1-for-15 ratio, effective November 20, 2024, to enhance stock value. The company also settled a class action lawsuit, agreeing to a $125,000 payment to the plaintiff’s counsel to avoid further litigation costs.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.