Laser Photonics Corp (NASDAQ: LASE)

Sector: Industrials Industry: Specialty Industrial Machinery CIK: 0001807887
Market Cap 35.84 Mn
P/B 8.74
P/E -1.66
P/S 5.02
ROIC (Qtr) -75.92
Div Yield % 0.00
Rev 1y % (Qtr) 28.27
Total Debt (Qtr) 8.82 Mn
Debt/Equity (Qtr) 2.15
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About

Laser Photonics Corp, also known as LASE, operates in the laser blasting industry with the goal of disrupting traditional sandblasting and abrasives blasting markets. The company provides a comprehensive range of laser blasting solutions, designed to cater to various industries such as automotive, aerospace, healthcare, consumer products, shipbuilding, heavy industry, machine manufacturing, nuclear maintenance and decommissioning, and surface coating. These solutions are integral to corrosion control, rust removal, de-coating, pre- and post-welding,...

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Investment thesis

Bull case

  • Tangible assets of 12.48M provide exceptional 6.49x coverage of deferred revenue 1.92M, showing strong service capability backing.
  • Operating cash flow of (4.13M) fully covers other non-current liabilities (1.92M) by 2.15x, showing strong long-term stability.
  • Strong free cash flow of (4.21M) provides 6.74x coverage of acquisition spending (625000), indicating disciplined M&A strategy.
  • Tangible assets of 12.48M provide robust 4.51x coverage of other current liabilities 2.77M, indicating strong asset backing.
  • Cash reserves of 3.62M exceed inventory value of 2.15M by 1.69x, indicating strong liquidity and inventory management.

Bear case

  • Investment activities of (711753) provide weak support for R&D spending of 471210, which is -1.51x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 3.62M provide limited coverage of acquisition spending of (625000), which is -5.80x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (4.13M) provides insufficient coverage of deferred revenue obligations of 1.92M, which is -2.15x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (4.13M) shows concerning coverage of stock compensation expenses of 555900, with a -7.42 ratio indicating potential earnings quality issues.
  • Free cash flow of (4.21M) provides weak coverage of capital expenditures of 86753, with a -48.55 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Specialty Industrial Machinery
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GEV GE Vernova Inc. 224.93 Bn 194.57 6.14 0.00 Bn
2 ETN Eaton Corp plc 153.13 Bn 38.99 5.75 11.22 Bn
3 PH Parker-Hannifin Corp 135.87 Bn 165.29 12.09 9.87 Bn
4 EMR Emerson Electric Co 111.68 Bn 47.10 4.65 13.41 Bn
5 ITW Illinois Tool Works Inc 86.68 Bn 28.27 5.40 8.97 Bn
6 CMI Cummins Inc 82.13 Bn 28.89 2.44 7.55 Bn
7 AME Ametek Inc/ 53.79 Bn 36.34 7.27 2.28 Bn
8 ROK Rockwell Automation, Inc 43.80 Bn 44.24 5.11 3.68 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.42 2.28
EV to Cash from Ops. EV/CFO -10.25 37.14
EV to Debt EV to Debt 4.80 34.39
EV to EBIT EV/EBIT -5.62 27.71
EV to EBITDA EV/EBITDA -5.38 25.34
EV to Free Cash Flow [EV/FCF] EV/FCF -10.04 133.36
EV to Market Cap EV to Market Cap 1.18 1.04
EV to Revenue EV/Rev 5.92 39.88
Price to Book Value [P/B] P/B 8.74 6.22
Price to Earnings [P/E] P/E -1.66 143.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -1.53 2.57
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 15.73
Dividend per Basic Share Div per Share (Qtr) 0.00 0.91
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 82.53
Interest Coverage Int. cover (Qtr) 0.00 12.34
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 80.63 -45.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 70.83 118.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 10.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -109.47 -283.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -175.79 -36.87
EBIT Growth (1y) % EBIT 1y % (Qtr) -109.47 -80.72
EBT Growth (1y) % EBT 1y % (Qtr) -109.47 -120.93
EPS Growth (1y) % EPS 1y % (Qtr) -51.72 -39.22
FCF Growth (1y) % FCF 1y % (Qtr) 16.85 85.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 16.95 0.87
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.41 0.62
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.10
Cash Ratio Cash Ratio (Qtr) 0.40 3.01
Current Ratio Curr Ratio (Qtr) 0.74 4.97
Debt to Equity Ratio Debt/Equity (Qtr) 2.15 0.38
Interest Cover Ratio Int Coverage (Qtr) 0.00 12.34
Times Interest Earned Times Interest Earned (Qtr) 0.00 12.34
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -89.00 -7,291.27
EBIT Margin % EBIT Margin % (Qtr) -105.37 -7,413.30
EBT Margin % EBT Margin % (Qtr) -105.37 -9,015.79
Gross Margin % Gross Margin % (Qtr) 35.20 -32.61
Net Profit Margin % Net Margin % (Qtr) -302.50 -7,962.06