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Category: Stock Market and LifeVantage
Date: 22 September 2019 Stock Price: $13.94 We take a look at the 4th quarter earnings release of their 2019 fiscal year of LifeVantage a company that develops and distributes a variety of nutrigenomic dietary supplements meant to fight the aging process.
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About LifeVantage
LifeVantage Corporation (Nasdaq: LFVN) is a pioneer in Nutrigenomics - a new science dedicated to biohacking the human aging code. The Company engages in the identification, research, development and distribution of advanced nutrigenomic dietary supplements and skin and hair care products, including its Protandim® product line, LifeVantage® Omega+ and ProBio dietary supplements, the TrueScience® line of Nrf2-infused skin and hair care products, Petandim™ for Dogs, Axio® Smart Energy Drink mixes, and the PhysIQ™ Smart Weight Management System. LifeVantage was founded in 2003 and is headquartered in Salt Lake City, Utah.
The image below shows a few of LifeVantage's products.
The image below shows a few of LifeVantage's products.
Overview LifeVantage's latest earnings report
The numbers we are interested in (for the quarter):
- Revenue: $56.170 million (up from $54.033 million from the same quarter of the previous year)
- Revenue increased by 3.95% over the last 12 months
- Total operating expenses: $40.791 million (up from $41.66 million for the same quarter of the previous year)
- Total operating expenses increased by 2.1% over the last 12 months
- Net earnings: $3.907 million (up from $2.992 million for the same quarter of the previous year)
- Diluted income per share: $0.26 (up from $0.21 for the same quarter of the previous year)
- Diluted weighted-average shares outstanding: 15.117 million (up from 14.147 million for the same quarter of the previous year)
- Cash and cash equivalents: $18.824 million
- Cash and cash equivalents per share: $1.24
- Cash and cash equivalents makes up 8.89% of LifeVantage's market capital
- Cash and cash equivalents makes up 34% of LifeVantage's total assets
- Inventories : $13.753 million
- Accounts receivable makes up 24.9% of LifeVantage's total assets
- Stockholders equity of LifeVantage: $27.199 million
- Stockholders equity per share: $1.79
- LifeVantage is trading at 7.8 times its stockholders equity per share. It is trading outside the expected range as most firms tend to trade at levels between 2 and 4 times its stated stockholders equity per share.
LifeVantage's management commentary on the results and earnings guidance
SALT LAKE CITY, Aug. 14, 2019 (GLOBE NEWSWIRE) -- LifeVantage Corporation (Nasdaq: LFVN) today reported financial results for its fourth quarter and full fiscal year ended June 30, 2019.
"We are proud to report a strong finish to fiscal 2019, generating the highest annual revenue in the Company’s history while exceeding our fiscal 2019 adjusted EPS guidance,” stated LifeVantage President and Chief Executive Officer, Darren Jensen. “We continue to see positive trends in our active member counts, reflecting successful execution of each of our 2019 strategic initiatives. We have also expanded our geographic footprint and enhanced our innovative product offering. Looking to fiscal 2020, we remain focused on the key drivers of our continued growth, while embracing new initiatives with the intent to expand these drivers and capitalize on the ever growing global consumer interest in improving health and enhancing lifestyles. Our key initiatives for 2020 include growing our biohacking subscriptions, attracting and creating influencers to expand reach, simplifying the business building opportunity at LifeVantage and building a solid foundation for future growth. I am confident that the future remains bright for LifeVantage and I look forward to executing on our plans for fiscal 2020 and beyond.”
Fiscal Year 2020 Guidance
The Company expects to generate revenue in the range of $235 million to $245 million in fiscal year 2020 and adjusted EBITDA of $20 million to $22 million, with adjusted earnings per share in the range of $0.62 to $0.71, which assumes a full year tax rate in the range of 19% to 22%. The Company's adjusted non-GAAP EBITDA and adjusted non-GAAP earnings per diluted share guidance excludes any non-operating or non-recurring expenses that may materialize during fiscal 2020. The Company is not providing GAAP earnings per diluted share guidance for fiscal 2020 due to the potential occurrence of one or more non-operating, one-time expenses, which the Company does not believe it can reliably predict.
"We are proud to report a strong finish to fiscal 2019, generating the highest annual revenue in the Company’s history while exceeding our fiscal 2019 adjusted EPS guidance,” stated LifeVantage President and Chief Executive Officer, Darren Jensen. “We continue to see positive trends in our active member counts, reflecting successful execution of each of our 2019 strategic initiatives. We have also expanded our geographic footprint and enhanced our innovative product offering. Looking to fiscal 2020, we remain focused on the key drivers of our continued growth, while embracing new initiatives with the intent to expand these drivers and capitalize on the ever growing global consumer interest in improving health and enhancing lifestyles. Our key initiatives for 2020 include growing our biohacking subscriptions, attracting and creating influencers to expand reach, simplifying the business building opportunity at LifeVantage and building a solid foundation for future growth. I am confident that the future remains bright for LifeVantage and I look forward to executing on our plans for fiscal 2020 and beyond.”
Fiscal Year 2020 Guidance
The Company expects to generate revenue in the range of $235 million to $245 million in fiscal year 2020 and adjusted EBITDA of $20 million to $22 million, with adjusted earnings per share in the range of $0.62 to $0.71, which assumes a full year tax rate in the range of 19% to 22%. The Company's adjusted non-GAAP EBITDA and adjusted non-GAAP earnings per diluted share guidance excludes any non-operating or non-recurring expenses that may materialize during fiscal 2020. The Company is not providing GAAP earnings per diluted share guidance for fiscal 2020 due to the potential occurrence of one or more non-operating, one-time expenses, which the Company does not believe it can reliably predict.
LifeVantage (NASDAQ: LFVN) stock price history
The image below, obtained from Google, shows the stock price history of LifeVantage (NASDAQ: LFVN) over the last 5 year. And it's been a good time for LifeVantage stockholders. 5 years ago the stock of LifeVantage was trading at $8.30 a stock, and its currently it's trading at $13.94 Thats s return of 60.9% offered over the last 5 years. The stock is also trading at a lot closer to its 52 week high of $17.08 than it is to its 52 week low of $9.90 which to us is a clear indication that the short term sentiment and momentum of the stock is overwhelmingly positive.
LifeVantage (NASDAQ: LFVN) latest stock valuation
So based on the earnings report of LifeVantage (NASDAQ: LFVN) and the latest earnings guidance provided what do we value LifeVantage (LFVN) stock at? Based on their latest earnings and the outlook provided by the group our target (full value) price for LifeVantage at $16.60 a stock. We therefore believe the stock of LifeVantage is undervalued
We usually suggest long term fundamental and value investors look to enter the stock at least 10% below our target price, which in this case is $16.60 Therefore we believe the a good entry point into the stock is below $14.90. So at its current price we believe LifeVantage is a buy
We usually suggest long term fundamental and value investors look to enter the stock at least 10% below our target price, which in this case is $16.60 Therefore we believe the a good entry point into the stock is below $14.90. So at its current price we believe LifeVantage is a buy