Life360, Inc. (NASDAQ: LIF)

Sector: Technology Industry: Software - Application CIK: 0001581760
Market Cap 4.85 Bn
P/B 12.38
P/E 163.30
P/S 10.56
ROIC (Qtr) 2.17
Div Yield % 0.00
Rev 1y % (Qtr) 34.06
Total Debt (Qtr) 309.84 Mn
Debt/Equity (Qtr) 0.79

About

Life360, Inc., a technology company listed on the NASDAQ stock exchange under the symbol "LFGT," operates in the family safety industry. The company's primary business activity involves providing a platform that helps families locate their loved ones, pets, and valuable items through its mobile application. The platform operates in several countries, including the United States, Canada, the United Kingdom, Ireland, Australia, and New Zealand. Life360's mobile application is its primary product, which offers features such as communication, driving...

Read more

Price action

Investment thesis

Bull case

  • Tangible assets of 612.84M provide exceptional 12.21x coverage of deferred revenue 50.20M, showing strong service capability backing.
  • Robust free cash flow of 56.21M exceeds capital expenditure of 7.94M by 7.08x, indicating strong organic growth funding capability.
  • Tangible assets of 612.84M provide robust 8.39x coverage of other current liabilities 73.05M, indicating strong asset backing.
  • Operating cash flow of 64.15M provides solid 0.78x coverage of current liabilities 81.94M, showing strong operational health.
  • Cash reserves of 455.73M provide robust 5.56x coverage of current liabilities 81.94M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of 64.15M barely covers its investment activities of (40.77M), with a coverage ratio of -1.57, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (40.77M) provide weak support for R&D spending of 124.86M, which is -0.33x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 455.73M provide limited coverage of acquisition spending of (7.83M), which is -58.24x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 64.15M provides insufficient coverage of deferred revenue obligations of 50.20M, which is 1.28x, raising concerns about future service delivery capabilities.
  • High receivables of 66.06M relative to inventory of 14.13M (4.67 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 6.00 2.65
EV to Cash from Ops. EV/CFO 73.61 13.37
EV to Debt EV to Debt 15.24 57.69
EV to EBIT EV/EBIT 173.12 19.12
EV to EBITDA EV/EBITDA 165.64 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF 84.02 14.69
EV to Market Cap EV to Market Cap 0.97 -92.28
EV to Revenue EV/Rev 10.29 4.60
Price to Book Value [P/B] P/B 12.38 4.26
Price to Earnings [P/E] P/E 163.30 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Interest Coverage 0.00 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -86.74 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 186.66 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 283.20 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 444.34 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 299.96 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 299.96 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 273.91 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 124.90 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 40.55 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.58 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 5.56 3.75
Current Ratio Curr Ratio (Qtr) 6.80 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.79 0.17
Interest Cover Ratio Interest Cover Ratio 0.00 -52.32
Times Interest Earned Times Interest Earned 0.00 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 8.80 -100.06
EBIT Margin % EBIT Margin % (Qtr) 5.94 -164.24
EBT Margin % EBT Margin % (Qtr) 5.94 -116.94
Gross Margin % Gross Margin % (Qtr) 77.70 58.20
Net Profit Margin % Net Margin % (Qtr) 6.50 -121.65