Luna Innovations Incorporated develops, manufactures, and markets fiber optic test, measurement, and control products worldwide. More Details
Adequate balance sheet and slightly overvalued.
Share Price & News
How has Luna Innovations's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LUNA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: LUNA's weekly volatility (6%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: LUNA exceeded the US Electronic industry which returned 52.7% over the past year.
Return vs Market: LUNA exceeded the US Market which returned 39.1% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Luna Innovations's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall StWhat Is The Ownership Structure Like For Luna Innovations Incorporated (NASDAQ:LUNA)?
1 month ago | Simply Wall StWe Like These Underlying Return On Capital Trends At Luna Innovations (NASDAQ:LUNA)
2 months ago | Simply Wall StIs Luna Innovations (NASDAQ:LUNA) Using Too Much Debt?
Is Luna Innovations undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LUNA ($11.45) is trading below our estimate of fair value ($15.36)
Significantly Below Fair Value: LUNA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LUNA is poor value based on its PE Ratio (86.6x) compared to the US Electronic industry average (24.5x).
PE vs Market: LUNA is poor value based on its PE Ratio (86.6x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate LUNA's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: LUNA is overvalued based on its PB Ratio (4.7x) compared to the US Electronic industry average (2.7x).
How is Luna Innovations forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if LUNA's forecast earnings growth is above the savings rate (2%).
Earnings vs Market: Insufficient data to determine if LUNA's earnings are forecast to grow faster than the US market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LUNA's revenue (20.7% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: LUNA's revenue (20.7% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if LUNA's Return on Equity is forecast to be high in 3 years time
How has Luna Innovations performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LUNA has a large one-off loss of $2.8M impacting its March 31 2021 financial results.
Growing Profit Margin: LUNA's current net profit margins (4.5%) are lower than last year (6%).
Past Earnings Growth Analysis
Earnings Trend: LUNA has become profitable over the past 5 years, growing earnings by 72.3% per year.
Accelerating Growth: LUNA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LUNA had negative earnings growth (-5.7%) over the past year, making it difficult to compare to the Electronic industry average (20.1%).
Return on Equity
High ROE: LUNA's Return on Equity (5.3%) is considered low.
How is Luna Innovations's financial position?
Financial Position Analysis
Short Term Liabilities: LUNA's short term assets ($74.8M) exceed its short term liabilities ($27.5M).
Long Term Liabilities: LUNA's short term assets ($74.8M) exceed its long term liabilities ($24.9M).
Debt to Equity History and Analysis
Debt Level: LUNA's debt to equity ratio (24.8%) is considered satisfactory.
Reducing Debt: LUNA's debt to equity ratio has increased from 15.9% to 24.8% over the past 5 years.
Debt Coverage: LUNA's debt is not well covered by operating cash flow (1.2%).
Interest Coverage: LUNA's interest payments on its debt are well covered by EBIT (41.5x coverage).
What is Luna Innovations's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate LUNA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate LUNA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if LUNA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if LUNA's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of LUNA's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Scott Graeff (54 yo)
Mr. Scott A. Graeff has been President and Chief Executive Officer of Luna Innovations Incorporated since October 23, 2017 and served as its Principal Operating Officer . Mr. Graeff served as the Chief Str...
CEO Compensation Analysis
Compensation vs Market: Scott's total compensation ($USD1.18M) is below average for companies of similar size in the US market ($USD1.75M).
Compensation vs Earnings: Scott's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: LUNA's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.
Experienced Board: LUNA's board of directors are considered experienced (4.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.1%.
Luna Innovations Incorporated's company bio, employee growth, exchange listings and data sources
- Name: Luna Innovations Incorporated
- Ticker: LUNA
- Exchange: NasdaqCM
- Founded: 1990
- Industry: Electronic Equipment and Instruments
- Sector: Tech
- Market Cap: US$359.747m
- Shares outstanding: 31.42m
- Website: https://www.lunainc.com
Number of Employees
- Luna Innovations Incorporated
- 301 1st Street, SW
- Suite 200
- United States
Luna Innovations Incorporated develops, manufactures, and markets fiber optic test, measurement, and control products worldwide. It operates through two segments, Lightwave and Luna Labs. The Lightwave seg...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/07/25 23:07|
|End of Day Share Price||2021/07/23 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.