NasdaqCM:LUNA

Stock Analysis Report

Executive Summary

Luna Innovations Incorporated develops, manufactures, and markets fiber optic sensing, and test and measurement products worldwide.

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.

Share Price & News

How has Luna Innovations's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.0%

LUNA

3.8%

US Electronic

1.0%

US Market


1 Year Return

75.1%

LUNA

15.9%

US Electronic

8.0%

US Market

Return vs Industry: LUNA exceeded the US Electronic industry which returned 15.9% over the past year.

Return vs Market: LUNA exceeded the US Market which returned 8% over the past year.


Shareholder returns

LUNAIndustryMarket
7 Day6.0%3.8%1.0%
30 Day-5.0%3.9%-0.07%
90 Day17.3%2.7%-1.0%
1 Year75.1%75.1%17.1%15.9%10.4%8.0%
3 Year331.9%331.9%54.6%50.2%46.2%36.7%
5 Year345.0%345.0%88.4%79.1%64.3%46.2%

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

Valuation

Is Luna Innovations undervalued compared to its fair value and its price relative to the market?

56.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LUNA ($5.83) is trading above our estimate of fair value ($3.87)

Significantly Below Fair Value: LUNA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LUNA is poor value based on its PE Ratio (56.8x) compared to the Electronic industry average (19.5x).

PE vs Market: LUNA is poor value based on its PE Ratio (56.8x) compared to the US market (17.6x).


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 (2.5x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

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

16.5%

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 (2.7%).

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 (16.5% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: LUNA's revenue (16.5% per year) is forecast to grow slower 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


Next Steps

Past Performance

How has Luna Innovations performed over the past 5 years?

52.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LUNA has become profitable over the past 5 years, growing earnings by 52.9% per year.

Accelerating Growth: LUNA's earnings growth over the past year (18614.7%) exceeds its 5-year average (52.9% per year).

Earnings vs Industry: LUNA earnings growth over the past year (18614.7%) exceeded the Electronic industry 58.6%.


Return on Equity

High ROE: LUNA's Return on Equity (4.9%) is considered low.


Return on Assets

ROA vs Industry: LUNA's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: LUNA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Luna Innovations's financial position?


Financial Position Analysis

Short Term Liabilities: LUNA's short term assets ($53.8M) exceeds its short term liabilities ($14.4M)

Long Term Liabilities: LUNA's short term assets (53.8M) exceeds its long term liabilities (2.6M)


Debt to Equity History and Analysis

Debt Level: LUNA is debt free.

Reducing Debt: LUNA has no debt compared to 5 years ago when its debt to equity ratio was 6.8%.

Debt Coverage: LUNA has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: LUNA has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: LUNA has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if LUNA's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate LUNA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LUNA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

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.


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Scott Graeff (52yo)

2yrs

Tenure

US$997,245

Compensation

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Scott's compensation has increased by more than 20% in the past year.


Management Age and Tenure

5.5yrs

Average Tenure

52yo

Average Age

Experienced Management: LUNA's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

3.4yrs

Average Tenure

71yo

Average Age

Experienced Board: LUNA's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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Ownership Breakdown


Management Team

  • Dale Messick (55yo)

    Chief Financial Officer

    • Tenure: 8.5yrs
    • Compensation: US$558.20k
  • Scott Graeff (52yo)

    President

    • Tenure: 2yrs
    • Compensation: US$997.25k
  • Brian Soller (46yo)

    VP & GM of Lightwave Division

    • Tenure: 5.5yrs
  • Allison Woody

    Director of Administration

    • Tenure: 0yrs

Board Members

  • Jerre Stead (76yo)

    Member of Advisory Board

    • Tenure: 0yrs
  • Barry Phelps (72yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$56.00k
  • Jack Marsh (92yo)

    Member of Advisory Board

    • Tenure: 0yrs
  • Rich Roedel (70yo)

    Independent Chairman of the Board

    • Tenure: 9.8yrs
    • Compensation: US$103.00k
  • Don Pastor (65yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$63.00k
  • Scott Graeff (52yo)

    President

    • Tenure: 2yrs
    • Compensation: US$997.25k
  • G. Wincup

    Member of Advisory Board

    • Tenure: 0yrs
  • John Noftsinger

    Member of Advisory Board

    • Tenure: 0yrs
  • Harold Kroto

    Member of Advisory Board

    • Tenure: 0yrs
  • Charles Hamner

    Member of Advisory Board

    • Tenure: 0yrs

Company Information

Luna Innovations Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Luna Innovations Incorporated
  • Ticker: LUNA
  • Exchange: NasdaqCM
  • Founded: 1990
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$164.993m
  • Shares outstanding: 28.30m
  • Website: https://www.lunainc.com

Number of Employees


Location

  • Luna Innovations Incorporated
  • 301 1st Street, SW
  • Suite 200
  • Roanoke
  • Virginia
  • 24011
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LUNANasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJun 2006

Biography

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 Devel ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:57
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.