LifeMD (LFMD) AI Stock Analysis

• Market Cap: $267.50M
• Dividend Yield: N/A
• Average Volume (3M): 1.71M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.12
• Revenue Growth: 39.27%
• EPS Growth: 23.49%
• Country: US
• Employees: 232
• Sector: Healthcare
• Sector Strength: 64
• Industry: Healthcare Providers & Services
• EPS (TTM): -0.54
• Shares Outstanding: 44,583,687
• 10 Day Avg. Volume: 1,187,995
• 30 Day Avg. Volume: 1,713,203
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.18
• Price to Cash Flow (P/CF): 39.80
• P/FCF Ratio: 275.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.42
• Price Target Upside: 103.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

LifeMD's stock score is buoyed by strong revenue growth and a positive earnings call outlook for 2025, especially in the telehealth sector. However, persistent net losses, negative equity, and valuation concerns limit the overall score. While the technical indicators are mixed, the company's strategic initiatives and financial guidance provide a cautiously optimistic view for the future.

Positive Factors

Earnings and Financial Performance

LifeMD exits 2024 on a high note with 4Q24 revenues of $64 mln (+43% y-o-y) vs. Street's $58 mln and our $59 mln view, and EBITDA of $9 mln that was also above Street/Mizuho $7 mln forecast.

Product and Market Expansion

LifeMD's comprehensive care platform and new product offerings are anticipated to enhance its market position.

Strategic Initiatives

Management reiterated high growth expectations over the next few years from newer programs ex-weight management, such as women's health and a new mail-order pharmacy.

Negative Factors

Cost and Insurance Challenges

Management believes another major challenge for LFMD is patient affordability for the high price of branded GLP-1 drugs when insurance does not cover it.

Financial Risks

Investors are questioning the sustainability of revenue streams for LifeMD and other companies selling compounded forms of tirzepatide.

Regulatory Challenges

The FDA's intention to take tirzepatide off the drug shortage list implies that compounding would no longer be allowed, posing a risk to LifeMD's revenue.

LifeMD Business Overview & Revenue Model

Company Description

LifeMD, Inc. operates as a direct-to-patient telehealth company that connects consumers to healthcare professionals for care across various indications, including concierge care, men's sexual health, dermatology, and others in the United States. The company provides ShapiroMD, a telehealth platform brand that offers access to virtual medical treatment, prescription medications, patented-doctor formulated OTC products, and an FDA approved medical device for male and female hair loss, and female specific topical compounded medications for hair loss; RexMD, a men's telehealth brand that offers virtual medical treatment from licensed providers for a variety of men's health needs; LifeMD Primary Care, a personalized subscription-based virtual primary care platform that provides patients with primary care, urgent care, and chronic care needs, as well as .offers a mobile first platform that incorporates virtual consultations and treatment, prescription medications, diagnostics, and imaging; Cleared, a telehealth brand that provides personalized treatments for allergy, asthma, and immunology; and Nava MD, a female-oriented tele-dermatology and skincare brand that offers virtual medical treatment from dermatologists and other providers. It also offers PDFSimpli, an online software-as-a-service platform that allows users to create, edit, convert, sign, and share PDF documents. LifeMD sells its products directly to consumers and through e-commerce platforms, as well as through third party partner channels. The company was formerly known as Conversion Labs, Inc. and changed its name to LifeMD, Inc. in February 2021. LifeMD, Inc. was founded in 1994 and is headquartered in New York, New York.

How the Company Makes Money

LifeMD generates revenue primarily through its telehealth platform by offering subscription-based healthcare services. Patients pay for virtual consultations, which can include follow-up appointments and ongoing treatment plans, thereby creating a recurring revenue stream. Additionally, LifeMD earns money through the sale of prescription medications and personalized treatment products that are prescribed during consultations. The company may also have partnerships with healthcare providers or pharmaceutical companies, enhancing its service offerings and contributing to its revenue. Furthermore, LifeMD's business model may include ancillary services like lab testing and wellness products, broadening its revenue base.

LifeMD Financial Statement Overview

Summary

LifeMD exhibits strong revenue growth, but persistent net losses and negative equity pose significant financial challenges. The high gross profit margin is promising, but operational inefficiencies and financial instability require attention. Cash flow improvements are a positive sign, yet consistency in positive cash generation is crucial for sustainability.

Income Statement

The company's revenue has shown strong growth, increasing from $12.47M in 2019 to $184.97M in TTM 2024, indicating a robust upward trajectory. However, profitability remains a challenge with consistent net losses, reflected in a negative net profit margin. EBIT and EBITDA margins are also negative, indicating operational inefficiencies. Gross profit margin is high, suggesting strong pricing power or cost management at the gross level.

Balance Sheet

The balance sheet displays a significant negative stockholders' equity of $-5.49M in TTM 2024, raising concerns about financial stability. The debt-to-equity ratio is not meaningful due to negative equity, indicating potential leverage issues. Total assets have grown, but high liabilities overshadow the company's equity position, posing a risk. The equity ratio is negative, reflecting financial distress.

Cash Flow

The company has improved its operating cash flow to $17.51M in TTM 2024 from previous years, showing better cash management. Free cash flow has also improved significantly, although still modest relative to revenue. The operating cash flow to net income ratio is strong, indicating effective cash conversion despite net losses. However, historical volatility in cash flows suggests potential risks.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
212.45M	152.55M	119.03M	92.88M	37.29M
	Gross Profit
242.40M	133.65M	100.37M	74.88M	28.39M
	EBIT
-16.14M	-14.49M	-39.69M	-54.30M	-57.82M
	EBITDA
-6.65M	-8.21M	-39.61M	-53.95M	-57.48M
	Net Income Common Stockholders
-18.88M	-20.60M	-45.02M	-61.32M	-60.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
35.00T	33.15M	3.96M	41.33M	9.18M
	Total Assets
72.46T	58.48M	25.67M	49.92M	13.05M
	Total Debt
15.22T	18.93M	4.13M	1.85M	1.06M
	Net Debt
-19.79T	-14.21M	168.52K	-39.48M	-8.11M
	Total Liabilities
76.51T	52.91M	32.97M	24.10M	13.88M
	Stockholders Equity
-5.49T	3.51M	-6.83M	26.85M	1.35M
Cash Flow		Free Cash Flow
17.51M	86.95K	-35.83M	-36.49M	-12.53M
	Operating Cash Flow
17.51M	8.82M	-22.94M	-33.09M	-12.13M
	Investing Cash Flow
-11.54M	-8.73M	-13.91M	-3.40M	-798.14K
	Financing Cash Flow
-4.12M	29.10M	-528.20K	68.64M	21.00M

LifeMD Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LFMD, the sentiment is Negative. The current price of 5.6 is above the 20-day moving average (MA) of 5.43, below the 50-day MA of 5.76, and below the 200-day MA of 5.69, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 48.74 is Neutral, neither overbought nor oversold. The STOCH value of 60.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LFMD.

LifeMD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOCS	79 Outperform	$12.40B	61.37	21.24%	―	17.47%	49.87%
HIMS	71 Outperform	$7.09B	59.69	30.71%	―	69.33%	―
LFMD	62 Neutral	$267.50M	―	301.60%	―	39.27%	23.49%
Sector *	49 Neutral	$6.86B	0.72	-52.93%	2.49%	20.83%	1.11%
TDOC	45 Neutral	$1.49B	―	-52.46%	―	-1.26%	-338.56%
CLOV	45 Neutral	$1.89B	―	-14.75%	―	-32.45%	80.24%
AMWL	43 Neutral	$123.32M	―	-54.13%	―	-1.81%	70.88%

LifeMD Corporate Events

LifeMD Sets New CEO Compensation Strategy

LifeMD announced that its Chairman and CEO, Justin Schreiber, has entered into a Second Amendment to his Employment Agreement, which sets his new annual base salary at $500,000, effective January 1, 2025. This amendment reflects a significant financial commitment by the company towards its leadership, potentially impacting its overall compensation strategy and stakeholder perception.