Local Bounti Return On Asset vs. Operating Margin

LOCL Stock  USD 1.34  0.01  0.74%   
Considering the key profitability indicators obtained from Local Bounti's historical financial statements, Local Bounti Corp may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Local Bounti's ability to earn profits and add value for shareholders. The value of Price To Sales Ratio is estimated to slide to 0.57. The value of Days Sales Outstanding is estimated to slide to 38.73. At this time, Local Bounti's Income Tax Expense is quite stable compared to the past year. Change To Netincome is expected to rise to about 30.2 M this year, although the value of Income Before Tax is projected to rise to (117.8 M).
For Local Bounti profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Local Bounti to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Local Bounti Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Local Bounti's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Local Bounti Corp over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Is Packaged Foods & Meats space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Local Bounti. If investors know Local will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Local Bounti listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(18.11)
Revenue Per Share
3.835
Quarterly Revenue Growth
0.315
Return On Assets
(0.1)
Return On Equity
(4.25)
The market value of Local Bounti Corp is measured differently than its book value, which is the value of Local that is recorded on the company's balance sheet. Investors also form their own opinion of Local Bounti's value that differs from its market value or its book value, called intrinsic value, which is Local Bounti's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Local Bounti's market value can be influenced by many factors that don't directly affect Local Bounti's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Local Bounti's value and its price as these two are different measures arrived at by different means. Investors typically determine if Local Bounti is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Local Bounti's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Local Bounti Corp Operating Margin vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Local Bounti's current stock value. Our valuation model uses many indicators to compare Local Bounti value to that of its competitors to determine the firm's financial worth.
Local Bounti Corp is rated below average in return on asset category among its peers. It also is rated below average in operating margin category among its peers . At this time, Local Bounti's Operating Profit Margin is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Local Bounti by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Local Operating Margin vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Local Bounti

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.0996
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Local Bounti

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
(1.47) %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Local Operating Margin Comparison

Local Bounti is currently under evaluation in operating margin category among its peers.

Local Bounti Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Local Bounti, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Local Bounti will eventually generate negative long term returns. The profitability progress is the general direction of Local Bounti's change in net profit over the period of time. It can combine multiple indicators of Local Bounti, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Operating Income-116.9 M-111.1 M
Income Before Tax-124 M-117.8 M
Total Other Income Expense Net-7.1 M-7.5 M
Net Loss-100 M-95 M
Net Loss-124 M-117.8 M
Income Tax Expense13 M13.6 M
Net Interest Income-22.3 M-21.2 M
Net Loss-85 M-89.2 M
Change To Netincome28.8 M30.2 M
Net Loss(15.61)(16.39)
Income Quality 0.27  0.41 
Net Income Per E B T 1.04  1.09 

Local Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Local Bounti. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Local Bounti position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Local Bounti's important profitability drivers and their relationship over time.

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Our tools can tell you how much better you can do entering a position in Local Bounti without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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In addition to having Local Bounti in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Banks Theme
Large and small money and credit banks and credit services. The Banks theme has 42 constituents at this time.
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When determining whether Local Bounti Corp is a strong investment it is important to analyze Local Bounti's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Local Bounti's future performance. For an informed investment choice regarding Local Stock, refer to the following important reports:
Check out Correlation Analysis.
You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
To fully project Local Bounti's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Local Bounti Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Local Bounti's income statement, its balance sheet, and the statement of cash flows.
Potential Local Bounti investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Local Bounti investors may work on each financial statement separately, they are all related. The changes in Local Bounti's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Local Bounti's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.