Margin Breakdown
| EBITDA Margin | (4.65) | |
| Gross Margin | 0.12 | |
| Profit Margin | (6.15) |
Our latest forecast of Local (USA Stocks:LOCL)
 | By Vlad Skutelnik | Macroaxis Story |
Local Bounti Corp's stock has been on an impressive rally, with a price percent change of 22.14% and a potential upside of 11.49%. Despite the company's negative income, with an EPS estimate for the current year reported as a loss of 10.17, the stock's 200-day moving average stands at 5.4006, indicating a positive long-term trend. However, investors should consider the total risk alpha of 0.3606 and the maximum drawdown of 27.03, which suggest a higher level of risk. The company's market risk adjusted performance is at -0.12, which could be a concern for risk-averse investors.
Main Ideas
Local Bounti Corp's stock, currently priced at $6.05 per share, appears to be undervalued considering the company's modest future projections. Approximately 53.0% of Local Bounti's outstanding shares are held by corporate insiders. This insider ownership refers to the equity of Local Bounti Corp owned by company officers, directors, relatives of the leadership team, or anyone with access to non-public information. For our latest analysis of Local Bounti, including its current ownership structure, please refer to our ownership diagnostics page.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Raphi Shpitalnik
Every cloud has a silver lining, and for Local Bounti Corp, the impressive rally of its stock might just be that silver lining. Despite the company's projected loss of $7.88 per share next year and a current year loss of $10.17 per share, the stock has managed to reach a 52-week high of 41.08. This rally has caught the attention of Wall Street, with an overall consensus rating of 'Buy' and a target price of $11.25. However, with a high beta of 1.568, investors should be prepared for potential volatility. The question now is whether this rally can continue, or if the company's financial performance will eventually bring it back down to earth. At present, the Issuance Repayment of Debt Securities for Local Bounti Corp is relatively stable compared to the previous year. The Share-Based Compensation is projected to increase to approximately $42.3 million this year. However, the value of Earnings Before Tax is likely to decrease to -$114 million. The primary objective of this brief analysis is to provide a detailed forecast of Local Bounti Corp for institutional investors. We aim to predict the outlook for Local Bounti Corp for December.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Local Bounti Corp. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Local Bounti
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Local Bounti's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Local Bounti's Liquidity
Local Bounti financial leverage refers to using borrowed capital as a funding source to finance Local Bounti Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Local Bounti 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. Financial leverage can amplify the potential profits to Local Bounti's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Local Bounti's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Local Bounti's total debt and its cash.
Local Bounti Gross Profit
Local Bounti Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Local Bounti previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Local Bounti Gross Profit growth over the last 10 years. Please check Local Bounti's gross profit and other fundamental indicators for more details.
Is Local Bounti valued adequately by the market?
The latest Local Bounti Corp price slide may encourage institutional investors to take a closer look at the firm as it is trading at a share price of 3.20 on 70,882 in trading volume. The company directors and management were unable to exploit market volatilities in October. However, diversifying your overall positions with Local Bounti can protect your principal portfolio during market swings. The stock standard deviation of daily returns for 90 days investing horizon is currently 8.73. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Local Bounti Corp partners.
Warren Buffett once said, “Risk comes from not knowing what you're doing.” This sentiment rings true when considering the forecast for Local Bounti Corp's stock. Despite the recent impressive rally, the company's high probability of bankruptcy at 96.00%, and an alarming Return on Equity of -0.86, suggest caution.Its financial stability is further questioned with a negative income, forecasting an EPS Estimate Next Year of a loss of 7.88. The Beta value of 1.57 indicates a higher volatility compared to the market, while the significant variance of 73.68 also underlines this risk. Furthermore, with a substantial total debt of 120.08M, the financial health of the company seems precarious. While the current rally may be attractive, the overall data points towards a risky investment. Thus, investors should tread carefully, keeping in mind that impressive rallies can sometimes precede significant downturns. The ultimate direction of Local Bounti Corp's stock will be influenced by a myriad of factors, including its ability to manage its debt, improve profitability, and navigate through its high bankruptcy risk. .
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