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Luna Innovations

Nasdaq:LUNA
Snowflake Description

Flawless balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LUNA
Nasdaq
$117M
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Luna Innovations Incorporated develops, manufactures, and markets fiber optic sensing, and test and measurement products worldwide. The last earnings update was 35 days ago. More info.


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LUNA Share Price and Events
7 Day Returns
3.8%
NasdaqCM:LUNA
0.2%
US Electronic
0.3%
US Market
1 Year Returns
38%
NasdaqCM:LUNA
-3.2%
US Electronic
0.7%
US Market
LUNA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Luna Innovations (LUNA) 3.8% -7% -3% 38% 245% 197.5%
US Electronic 0.2% 1% -3.7% -3.2% 52.2% 46.8%
US Market 0.3% 0.4% 0.6% 0.7% 37.2% 37.4%
1 Year Return vs Industry and Market
  • LUNA outperformed the Electronic industry which returned -3.2% over the past year.
  • LUNA outperformed the Market in United States of America which returned 0.7% over the past year.
Price Volatility
LUNA
Industry
5yr Volatility vs Market

Value

 Is Luna Innovations undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Luna Innovations to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Luna Innovations.

NasdaqCM:LUNA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqCM:LUNA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.094 (1 + (1- 21%) (3.98%))
1.086
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.086 * 5.96%)
9.2%

Discounted Cash Flow Calculation for NasdaqCM:LUNA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Luna Innovations is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqCM:LUNA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.2%)
2019 4.61 Analyst x1 4.23
2020 6.46 Analyst x1 5.41
2021 8.01 Est @ 24.07% 6.15
2022 9.42 Est @ 17.67% 6.63
2023 10.67 Est @ 13.18% 6.87
2024 11.74 Est @ 10.05% 6.92
2025 12.66 Est @ 7.85% 6.84
2026 13.46 Est @ 6.32% 6.66
2027 14.17 Est @ 5.24% 6.41
2028 14.80 Est @ 4.49% 6.14
Present value of next 10 years cash flows $62.25
NasdaqCM:LUNA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $14.80 × (1 + 2.73%) ÷ (9.2% – 2.73%)
$234.96
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $234.96 ÷ (1 + 9.2%)10
$97.43
NasdaqCM:LUNA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $62.25 + $97.43
$159.68
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $159.68 / 28.15
$5.67
NasdaqCM:LUNA Discount to Share Price
Calculation Result
Value per share (USD) From above. $5.67
Current discount Discount to share price of $4.14
= -1 x ($4.14 - $5.67) / $5.67
27%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Luna Innovations is available for.
Intrinsic value
27%
Share price is $4.14 vs Future cash flow value of $5.67
Current Discount Checks
For Luna Innovations to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Luna Innovations's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Luna Innovations's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Luna Innovations's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Luna Innovations's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqCM:LUNA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.08
NasdaqCM:LUNA Share Price ** NasdaqCM (2019-06-17) in USD $4.14
United States of America Electronic Industry PE Ratio Median Figure of 92 Publicly-Listed Electronic Companies 18.17x
United States of America Market PE Ratio Median Figure of 3,093 Publicly-Listed Companies 17.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Luna Innovations.

NasdaqCM:LUNA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:LUNA Share Price ÷ EPS (both in USD)

= 4.14 ÷ 0.08

48.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Luna Innovations is overvalued based on earnings compared to the US Electronic industry average.
  • Luna Innovations is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Luna Innovations's expected growth come at a high price?
Raw Data
NasdaqCM:LUNA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 48.78x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
Not available
United States of America Electronic Industry PEG Ratio Median Figure of 59 Publicly-Listed Electronic Companies 1.23x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Luna Innovations, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Luna Innovations's assets?
Raw Data
NasdaqCM:LUNA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $2.27
NasdaqCM:LUNA Share Price * NasdaqCM (2019-06-17) in USD $4.14
United States of America Electronic Industry PB Ratio Median Figure of 140 Publicly-Listed Electronic Companies 1.98x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NasdaqCM:LUNA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:LUNA Share Price ÷ Book Value per Share (both in USD)

= 4.14 ÷ 2.27

1.82x

* Primary Listing of Luna Innovations.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Luna Innovations is good value based on assets compared to the US Electronic industry average.
X
Value checks
We assess Luna Innovations's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. Luna Innovations has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Luna Innovations expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21.7%
Expected annual growth in revenue.
Earnings growth vs Low Risk Savings
Is Luna Innovations expected to grow at an attractive rate?
  • Unable to compare Luna Innovations's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Luna Innovations's earnings growth to the United States of America market average as no estimate data is available.
  • Luna Innovations's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqCM:LUNA Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqCM:LUNA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 21.7%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqCM:LUNA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqCM:LUNA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 73 1
2019-12-31 65 2
NasdaqCM:LUNA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 49 1 2
2018-12-31 43 -3 1
2018-09-30 52 -3 2
2018-06-30 50 -2 1
2018-03-31 32 -2 -1
2017-12-31 33 1 -1
2017-09-30 35 1 -1
2017-06-30 38 0 -2
2017-03-31 38 1 -2
2016-12-31 42 0 -3
2016-09-30 46 0 -4
2016-06-30 48 1 -4

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Luna Innovations is high growth as no earnings estimate data is available.
  • Luna Innovations's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqCM:LUNA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Luna Innovations Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:LUNA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31
2019-12-31
NasdaqCM:LUNA Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.08
2018-12-31 0.04
2018-09-30 0.08
2018-06-30 0.05
2018-03-31 -0.03
2017-12-31 -0.05
2017-09-30 -0.04
2017-06-30 -0.06
2017-03-31 -0.08
2016-12-31 -0.10
2016-09-30 -0.13
2016-06-30 -0.14

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Luna Innovations will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Luna Innovations's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Luna Innovations has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Luna Innovations performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Luna Innovations's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Luna Innovations has delivered over 20% year on year earnings growth in the past 5 years.
  • Luna Innovations has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Luna Innovations has become profitable in the last year making it difficult to compare the US Electronic industry average.
Earnings and Revenue History
Luna Innovations's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Luna Innovations Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:LUNA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 48.98 2.36 15.97 4.34
2018-12-31 42.92 0.98 13.99 3.77
2018-09-30 52.40 2.34 15.69 4.02
2018-06-30 50.01 1.27 15.28 3.81
2018-03-31 31.76 -0.83 12.54 2.60
2017-12-31 33.08 -1.40 12.92 2.65
2017-09-30 35.01 -1.03 12.45 2.71
2017-06-30 37.90 -1.61 13.44 2.86
2017-03-31 37.97 -2.19 13.84 2.92
2016-12-31 41.87 -2.78 14.76 3.54
2016-09-30 45.52 -3.53 15.76 4.08
2016-06-30 47.54 -3.93 15.71 5.11
2016-03-31 52.67 -4.92 16.66 5.48
2015-12-31 44.02 -6.10 14.78 4.27
2015-09-30 34.76 -6.86 13.02 3.36
2015-06-30 26.92 -6.53 11.58 1.99
2015-03-31 22.13 -4.96 10.27 1.67
2014-12-31 21.26 -3.46 10.25 2.09
2014-09-30 19.77 -4.67 11.09 2.33
2014-06-30 19.10 -4.98 11.21 2.39
2014-03-31 18.70 -5.43 11.62 2.59
2013-12-31 18.33 -5.61 11.53 2.56
2013-09-30 16.86 -4.95 10.46 2.78
2013-06-30 21.92 -3.47 10.60 2.62
2013-03-31 23.83 -2.88 10.27 2.53
2012-12-31 23.47 -3.35 10.25 2.77
2012-09-30 28.39 -1.99 10.63 2.65
2012-06-30 30.39 -1.36 10.04 2.79

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Luna Innovations has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Luna Innovations used its assets less efficiently than the US Electronic industry average last year based on Return on Assets.
  • Luna Innovations has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Luna Innovations's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Luna Innovations has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Luna Innovations's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Luna Innovations's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Luna Innovations is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Luna Innovations's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Luna Innovations's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 155.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Luna Innovations Company Filings, last reported 2 months ago.

NasdaqCM:LUNA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 64.01 4.64 24.58
2018-12-31 62.35 0.73 42.46
2018-09-30 61.09 1.20 47.14
2018-06-30 51.69 1.62 33.29
2018-03-31 49.85 2.08 33.44
2017-12-31 49.54 2.55 36.98
2017-09-30 49.70 3.02 38.51
2017-06-30 33.69 3.49 10.29
2017-03-31 33.90 3.95 12.11
2016-12-31 35.09 4.42 12.80
2016-09-30 34.60 4.93 13.18
2016-06-30 35.01 5.40 13.81
2016-03-31 35.71 5.87 15.20
2015-12-31 36.91 6.19 17.46
2015-09-30 28.59 5.59 7.09
2015-06-30 29.23 5.98 7.51
2015-03-31 16.65 0.34 13.30
2014-12-31 17.50 0.74 14.12
2014-09-30 19.60 1.13 14.43
2014-06-30 20.05 1.52 14.67
2014-03-31 20.73 1.91 10.89
2013-12-31 11.76 2.30 7.78
2013-09-30 13.48 2.69 8.18
2013-06-30 13.78 3.16 8.74
2013-03-31 14.37 3.54 10.27
2012-12-31 11.27 3.81 6.34
2012-09-30 11.40 4.32 6.72
2012-06-30 11.09 4.71 6.64
  • Luna Innovations's level of debt (0.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (9.2% vs 0.5% today).
  • Debt is well covered by operating cash flow (236.6%, greater than 20% of total debt).
  • Luna Innovations earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Luna Innovations's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Luna Innovations has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Luna Innovations's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Luna Innovations dividends.
If you bought $2,000 of Luna Innovations shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Luna Innovations's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Luna Innovations's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqCM:LUNA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqCM:LUNA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Luna Innovations has not reported any payouts.
  • Unable to verify if Luna Innovations's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Luna Innovations's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Luna Innovations has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Luna Innovations's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Luna Innovations afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Luna Innovations has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Luna Innovations's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Scott Graeff
COMPENSATION $997,245
AGE 51
TENURE AS CEO 1.7 years
CEO Bio

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 Strategy Officer of Luna Innovations Incorporated until October 23, 2017. Mr. Graeff serves as Secretary at Luna Innovations Incorporated since May 2005 and serves as its Treasurer since July 2005. Mr. Graeff also served as an Interim General Manager of Picometrix Business Unit at Luna Innovations Incorporated since April 9, 2017. He is a Partner of Gryphon Capital Partners. Prior to Gryphon, Mr. Graeff founded a Financial Services Company named Liquidity Link. He served as the Chief Commercialization Officer at Luna Innovations Incorporated since May 2010. Mr. Graeff sold Liquidity Link to London based Reuters, Inc. He served as a Managing Director of Dominion Capital. He served as the Chief Financial Officer of Luna Innovations Incorporated from July 2005 to April 25, 2011 and served as its Chief Operating Officer from March 2009 to May 2010; Principal Accounting Officer since August 2010 and Executive Vice President of Corporate Development from July 2005 to August 2006. He serves on several Board of Directors to include the History Museum, The O. Winston Link Museum, Business Seed Capital, the Virginia Tech Capital Access Forum and ThinOptX. He served in the United States Army, where he was Captain & Commander of the Relief at the Tomb of the Unknown Soldier in Arlington National Cemetery and an Escort to the President of the United States during the Reagan Administration. He serves as a Director of Provox Technologies Corporation. He has been a Director of Luna Innovations Incorporated since October 23, 2017. He served as a Director at Luna Innovations Incorporated from August 2005 to March 2006. Mr. Graeff holds a BS in Finance with Distinction from the University of Virginia.

CEO Compensation
  • Scott's compensation has increased in line with Luna Innovations recently becoming profitable.
  • Scott's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Luna Innovations management team in years:

5.2
Average Tenure
51
Average Age
  • The average tenure for the Luna Innovations management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Scott Graeff

TITLE
President
COMPENSATION
$997K
AGE
51
TENURE
1.7 yrs

Dale Messick

TITLE
Chief Financial Officer
COMPENSATION
$558K
AGE
54
TENURE
8.2 yrs

Allison Woody

TITLE
Director of Administration

Brian Soller

TITLE
VP & GM of Lightwave Division
AGE
45
TENURE
5.2 yrs
Board of Directors Tenure

Average tenure and age of the Luna Innovations board of directors in years:

6.8
Average Tenure
66.5
Average Age
  • The tenure for the Luna Innovations board of directors is about average.
Board of Directors

Rich Roedel

TITLE
Chairman of the Board
COMPENSATION
$103K
AGE
69
TENURE
9.4 yrs

Scott Graeff

TITLE
President
COMPENSATION
$997K
AGE
51
TENURE
1.7 yrs

John Williamson

TITLE
Independent Director
COMPENSATION
$63K
AGE
64
TENURE
9.4 yrs

Don Pastor

TITLE
Independent Director
COMPENSATION
$63K
AGE
64
TENURE
4.1 yrs

G. Wincup

TITLE
Member of Advisory Board

Jerre Stead

TITLE
Member of Advisory Board
AGE
75

John Noftsinger

TITLE
Member of Advisory Board

Harold Kroto

TITLE
Member of Advisory Board

Jack Marsh

TITLE
Member of Advisory Board
AGE
91

Charles Hamner

TITLE
Member of Advisory Board
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
18. Jul 18 Sell Carilion Clinic Inc. Company 16. Jul 18 16. Jul 18 -39,497 $3.40 $-134,290
12. Jul 18 Sell Carilion Clinic Inc. Company 09. Jul 18 09. Jul 18 -8,955 $3.40 $-30,447
X
Management checks
We assess Luna Innovations's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Luna Innovations has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Kind Of Shareholder Owns Most Luna Innovations Incorporated (NASDAQ:LUNA) Stock?

Check out our latest analysis for Luna Innovations NasdaqCM:LUNA Ownership Summary, June 13th 2019 What Does The Institutional Ownership Tell Us About Luna Innovations? … We can see that Luna Innovations does have institutional investors; and they hold 23% of the stock. … Insider Ownership Of Luna Innovations The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Is There An Opportunity With Luna Innovations Incorporated's (NASDAQ:LUNA) 27% Undervaluation?

Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $4.61 $6.46 $8.01 $9.42 $10.67 $11.74 $12.66 $13.46 $14.17 $14.80 Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 24.07% Est @ 17.67% Est @ 13.18% Est @ 10.05% Est @ 7.85% Est @ 6.32% Est @ 5.24% Est @ 4.49% Present Value ($, Millions) Discounted @ 8.89% $4.24 $5.45 $6.20 $6.70 $6.97 $7.04 $6.98 $6.81 $6.58 $6.32 Present Value of 10-year Cash Flow (PVCF)= $63.29m "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$15m × (1 + 2.7%) ÷ (8.9% – 2.7%) = US$247m Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$247m ÷ ( 1 + 8.9%)10 = $105.39m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $168.68m. … NasdaqCM:LUNA Intrinsic value, May 22nd 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Can Luna Innovations Incorporated (NASDAQ:LUNA) Improve Its Returns?

Our data shows Luna Innovations has a return on equity of 2.0% for the last year. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.020 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Why We’re Not Impressed By Luna Innovations Incorporated’s (NASDAQ:LUNA) 2.6% ROCE

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … How Do You Calculate Return On Capital Employed?

Simply Wall St -

Can You Imagine How Elated Luna Innovations's (NASDAQ:LUNA) Shareholders Feel About Its 302% Share Price Gain?

Take, for example, the Luna Innovations Incorporated (NASDAQ:LUNA) share price, which skyrocketed 302% over three years. … As a general rule, if the market is looking past earnings to focus on revenue, there is a hope for, or expectation of, strong growth. … Over the last three years Luna Innovations has grown its revenue at 0.8% annually.

Simply Wall St -

Could Luna Innovations Incorporated's (NASDAQ:LUNA) Investor Composition Influence The Stock Price?

Every investor in Luna Innovations Incorporated (NASDAQ:LUNA) should be aware of the most powerful shareholder groups. … Luna Innovations is not a large company by global standards. … Let's take a closer look to see what the different types of shareholder can tell us about LUNA

Simply Wall St -

A Closer Look At Luna Innovations Incorporated's (NASDAQ:LUNA) Uninspiring ROE

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.042. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

At US$3.04, Is Luna Innovations Incorporated (NASDAQ:LUNA) Worth Looking At Closely?

This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price? … A question to answer is whether Luna Innovations's current trading price of $3.04 reflective of the actual value of the? … Let’s take a look at Luna Innovations’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Does Luna Innovations Incorporated's (NASDAQ:LUNA) PE Ratio Warrant A Sell?

This analysis is intended to introduce important early concepts to people who are starting to invest. … and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … See our latest analysis for Luna Innovations

Simply Wall St -

How Luna Innovations Incorporated (NASDAQ:LUNA) Can Impact Your Portfolio Volatility

If you are looking to invest in Luna Innovations Incorporated’s (NASDAQ:LUNA), or currently own the stock, then you need to understand its beta in order to understand how it can affect the risk of your portfolio. … The second risk is market-wide, which arises from investing in the stock market. … The most widely used metric to quantify a stock's market risk is beta, and the market as a whole represents a beta of one.

Simply Wall St -

Company Info

Description

Luna Innovations Incorporated develops, manufactures, and markets fiber optic sensing, and test and measurement products worldwide. It operates in two segments, Products and Licensing, and Technology Development. The Products and Licensing segment offers test and measurement products, which include optical vector analyzer, optical backscatter reflectometers, and the Phoenix family of tunable lasers; optical distributed sensor interrogator sensing solutions for distributed strain and temperature measurements; and Hyperion sensing solution that enable full-spectrum data acquisition and flexible peak detect algorithms of fiber-bragg grating (FBG), long period FBGs and fabry-perot sensors with low-latency access to data for closed loop feedback applications. This segment also provides general photonics comprising components, modules, and instruments to measure, manage, and control polarization and group delay in fiber optic networks; tunable lasers; and TeraMetrix products to measure and verify physical properties online and in real-time to reduce raw materials and rework costs in manufacturing processes as well as to conduct quality control monitoring utilizing terahertz measurement technologies. The Technology Development segment provides applied research for customers principally in the areas of sensing and instrumentation, advanced materials, and health sciences. The company sells its products to telecommunications companies, defense agencies, government system integrators, researchers, original equipment manufacturers, distributors, testing labs, and strategic partners directly, as well as through manufacturer representative organizations, partner and distribution channels, technical sales engineers, value added resellers, and independent sales representatives. Luna Innovations Incorporated was founded in 1990 and is headquartered in Roanoke, Virginia.

Details
Name: Luna Innovations Incorporated
LUNA
Exchange: NasdaqCM
Founded: 1990
$116,525,321
28,146,213
Website: http://www.lunainc.com
Address: Luna Innovations Incorporated
301 1st Street, SW,
Suite 200,
Roanoke,
Virginia, 24011,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM LUNA Common Stock Nasdaq Capital Market US USD 02. Jun 2006
Number of employees
Current staff
Staff numbers
257
Luna Innovations employees.
Industry
Electronic Equipment and Instruments
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/17 23:57
End of day share price update: 2019/06/17 00:00
Last estimates confirmation: 2019/05/14
Last earnings filing: 2019/05/13
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.