Life360, Inc. (LIF) Stock Analysis and Metrics

Sector: Technology Industry: Software - Application CIK: 0001581760

P/B 12.81

P/E 168.92

P/S 10.92

Market Cap 5.01 Bn

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...

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 safety, and location sharing. The application operates under a freemium business model, where its core offering is available for free, and users can upgrade to a premium version for additional features. The company's primary revenue stream is generated from subscription fees for its premium services.

The family safety industry is highly competitive, with several players vying for market share. Life360 competes with companies such as Apple, Google, and Samsung, which offer similar features through their mobile devices. However, Life360 has a competitive advantage in that its platform is cross-platform, meaning it is available on both iOS and Android devices. This cross-platform compatibility allows Life360 to reach a broader customer base than its competitors.

Life360 has a diverse customer base, with over 30 million users across its six markets. The company's customers are primarily families who use the platform to stay connected and ensure the safety of their loved ones.

Life360's mobile application offers several features, including location sharing, driving safety, and communication. The location sharing feature allows users to share their real-time location with other users on the platform. The driving safety feature provides users with insights into their driving habits, such as speeding, hard braking, and phone usage while driving. The communication feature allows users to send messages and make voice or video calls through the platform.

Stock Price Chart

Analysis

Pros

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.

Cons

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	285.65 Bn	34.28	6.65	10.73 Bn
2	CRM	Salesforce, Inc.	250.51 Bn	34.69	6.21	11.14 Bn
3	SHOP	Shopify Inc.	211.90 Bn	118.98	19.81	1.12 Bn
4	INTU	Intuit Inc.	187.44 Bn	45.52	9.65	6.78 Bn
5	NOW	ServiceNow, Inc.	179.12 Bn	103.48	14.14	2.40 Bn
6	UBER	Uber Technologies, Inc	177.70 Bn	10.68	3.58	12.19 Bn
7	ADBE	Adobe Inc.	154.21 Bn	22.17	6.65	6.64 Bn
8	ADP	Automatic Data Processing Inc	108.23 Bn	26.17	5.18	9.77 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	6.21	2.61
EV to Cash from Ops.	76.22	12.63
EV to Debt	15.78	58.46
EV to EBIT	179.24	19.63
EV to EBITDA	171.49	14.84
EV to Free Cash Flow [EV/FCF]	86.99	14.49
EV to Market Cap	0.98	-64.65
EV to Revenue	10.65	4.54
Price to Book Value [P/B]	12.81	4.28
Price to Earnings [P/E]	168.92	-128.74

Dividend Metrics

Metric	Value	Industry	Percentile
Dividend Coverage Ratio	0.00	-3.88
Dividend Payout Ratio %	0.00	4.42
Dividend per Basic Share	0.00	0.15
FCF Dividend Payout Ratio %	0.00	2.74
Interest Coverage	0.00	-51.38

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-86.74	-255.77
Cash and Equivalents Growth (1y) %	186.66	9,578.57
Dividend Growth (1y) %	0.00	1.65
EBIAT Growth (1y) %	283.20	-262.37
EBITDA Growth (1y) %	444.34	48.16
EBIT Growth (1y) %	299.96	-224.98
EBT Growth (1y) %	299.96	-87.26
EPS Growth (1y) %	273.91	120.66
FCF Growth (1y) %	124.90	68.44
Gross Profit Growth (1y) %	40.55	92.93

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.58	0.60
Cash Payout Ratio	0.00	0.02
Cash Ratio	5.56	3.72
Current Ratio	6.80	8.31
Debt to Equity Ratio	0.79	0.14
Interest Cover Ratio	0.00	-51.38
Times Interest Earned	0.00	-51.38

Profitability

Metric	Value	Industry
EBITDA Margin %	8.80	-102.19
EBIT Margin %	5.94	-165.86
EBT Margin %	5.94	-120.20
Gross Margin %	77.70	57.25
Net Profit Margin %	6.50	-124.49

Life360, Inc. (NASDAQ: LIF)