LightInTheBox Story

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LITB -- USA Stock  

USD 2.45  0.10  3.92%

The stock is undergoing an active upward rally. LightInTheBox Holding Average Assets are projected to increase significantly based on the last few years of reporting. The past year's Average Assets were at 108.39 Million. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 4 M, whereas Invested Capital is forecasted to decline to (23.7 M). Although many aggressive traders are getting into consumer cyclical space, LightInTheBox Holding Co may or may not be your first choice. Let's try to analyze if LightInTheBox Holding shares are reasonably priced going into November.
Published over three months ago
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Should I quit my LightInTheBox (NYSE:LITB) position?
LightInTheBox Holding currently holds 13.47 M in liabilities with Debt to Equity (D/E) ratio of 0.34, which is about average as compared to similar companies. LightInTheBox Holding holds a performance score of 13 on a scale of zero to a hundred. The company secures a Beta (Market Risk) of 1.2313, which conveys a somewhat significant risk relative to the market. Let's try to break down what LightInTheBox's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, LightInTheBox Holding will likely underperform. Although it is essential to pay attention to LightInTheBox Holding price patterns, it is also good to be reasonable about what you can do with equity historical price patterns. Our philosophy towards estimating future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if LightInTheBox Holding expected return of 1.78 will be sustainable into the future, we have found twenty-eight different technical indicators, which can help you to check if the expected returns are sustainable. Use LightInTheBox Holding jensen alpha, semi variance, day typical price, as well as the relationship between the maximum drawdown and accumulation distribution to analyze future returns on LightInTheBox Holding.
LightInTheBox Holding financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of LightInTheBox Holding, including all of LightInTheBox Holding's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of LightInTheBox Holding assets, the company is considered highly leveraged. Understanding the composition and structure of overall LightInTheBox Holding debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding LightInTheBox Total Debt

LightInTheBox Holding liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. LightInTheBox Holding has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on LightInTheBox Holding balance sheet include debt obligations and money owed to different LightInTheBox Holding vendors, workers, and loan providers. Below is the chart of LightInTheBox main long-term debt accounts currently reported on its balance sheet.
You can use LightInTheBox Holding Co financial leverage analysis tool to get a better grip on understanding its financial position

How important is LightInTheBox Holding's Liquidity

LightInTheBox Holding financial leverage refers to using borrowed capital as a funding source to finance LightInTheBox Holding Co ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. LightInTheBox Holding financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between LightInTheBox Holding's total debt and its cash.

Detailed Perspective On LightInTheBox Holding

This firm reported the previous year's revenue of 300.01 M. Net Income was 31.61 M with profit before overhead, payroll, taxes, and interest of 97.6 M.

Asset Breakdown

60.2 M
Assets Non Current
39.3 M
Goodwill
72.2 M
Current Assets
Total Assets110.34 Million
Current Assets72.22 Million
Assets Non Current60.23 Million
Goodwill39.31 Million

Our perspective of the current LightInTheBox Holding rise

Risk adjusted performance is down to 0.16. It may suggest a possible volatility slip. As of the 11th of October 2020, LightInTheBox Holding secures the Risk Adjusted Performance of 0.1592, downside deviation of 6.69, and Mean Deviation of 5.93. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of LightInTheBox Holding, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to interpolate and analyze data for nineteen technical drivers for LightInTheBox Holding, which can be compared to its peers in the industry. Please verify LightInTheBox Holding variance, as well as the relationship between the maximum drawdown and semi variance to decide if LightInTheBox Holding Co is priced some-what accurately, providing market reflects its recent price of 2.74 per share. Please also check out LightInTheBox Holding total risk alpha, which is currently at 0.141 to check the company can sustain itself at a future point.

The Current Takeaway on LightInTheBox Holding Investment

Whereas some other entities under the internet retail industry are still a bit expensive, LightInTheBox Holding may offer a potential longer-term growth to investors. While some investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to LightInTheBox Holding.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of LightInTheBox Holding Co. Please refer to our Terms of Use for any information regarding our disclosure principles.

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