Lightspeed Commerce Current Valuation vs. Gross Profit

LSPD Stock  CAD 24.49  0.51  2.13%   
Based on the measurements of profitability obtained from Lightspeed Commerce's financial statements, Lightspeed Commerce may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess Lightspeed Commerce's ability to earn profits and add value for shareholders. At this time, Lightspeed Commerce's Days Sales Outstanding is very stable compared to the past year. As of the 7th of December 2024, Sales General And Administrative To Revenue is likely to grow to 0.21, while Price To Sales Ratio is likely to drop 2.28. At this time, Lightspeed Commerce's Total Other Income Expense Net is very stable compared to the past year. As of the 7th of December 2024, Income Tax Expense is likely to grow to about 3.6 M, though Accumulated Other Comprehensive Income is likely to grow to (3.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.640.4237
Way Up
Slightly volatile
For Lightspeed Commerce profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lightspeed Commerce to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lightspeed Commerce utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lightspeed Commerce's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lightspeed Commerce over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
To learn how to invest in Lightspeed Stock, please use our How to Invest in Lightspeed Commerce guide.
Please note, there is a significant difference between Lightspeed Commerce's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lightspeed Commerce is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lightspeed Commerce'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.

Lightspeed Commerce Gross Profit vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Lightspeed Commerce's current stock value. Our valuation model uses many indicators to compare Lightspeed Commerce value to that of its competitors to determine the firm's financial worth.
Lightspeed Commerce is considered the number one company in current valuation category among its peers. It is rated second overall in gross profit category among its peers fabricating about  0.10  of Gross Profit per Current Valuation. The ratio of Current Valuation to Gross Profit for Lightspeed Commerce is roughly  10.43 . At this time, Lightspeed Commerce's Gross Profit is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Lightspeed Commerce by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lightspeed Commerce's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Lightspeed Current Valuation vs. Competition

Lightspeed Commerce is considered the number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Information Technology industry is now estimated at about 220.18 Billion. Lightspeed Commerce claims roughly 2.83 Billion in current valuation contributing just under 2% to equities under Information Technology industry.

Lightspeed Gross Profit vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Lightspeed Commerce

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
2.83 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Lightspeed Commerce

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
271.17 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

Lightspeed Gross Profit Comparison

Lightspeed Commerce is currently under evaluation in gross profit category among its peers.

Lightspeed Commerce Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Lightspeed Commerce, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lightspeed Commerce will eventually generate negative long term returns. The profitability progress is the general direction of Lightspeed Commerce's change in net profit over the period of time. It can combine multiple indicators of Lightspeed Commerce, 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
Accumulated Other Comprehensive Income-4 M-3.8 M
Interest Income44 M32.4 M
Operating Income-203 M-213.2 M
Net Loss-164 M-172.2 M
Income Before Tax-160.5 M-168.5 M
Total Other Income Expense Net42.5 M44.7 M
Net Loss-963 M-914.9 M
Net Loss-164 M-172.2 M
Income Tax Expense3.5 M3.6 M
Net Interest Income42.5 M44.7 M
Change To Netincome141.4 M72.8 M
Net Loss(1.07)(1.12)
Income Quality 0.60  0.63 
Net Income Per E B T 1.02  1.10 

Lightspeed Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Lightspeed Commerce. 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 Lightspeed Commerce 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 Lightspeed Commerce's important profitability drivers and their relationship over time.

Use Lightspeed Commerce in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Lightspeed Commerce position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lightspeed Commerce will appreciate offsetting losses from the drop in the long position's value.

Lightspeed Commerce Pair Trading

Lightspeed Commerce Pair Trading Analysis

The ability to find closely correlated positions to Lightspeed Commerce could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lightspeed Commerce when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Lightspeed Commerce - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Lightspeed Commerce to buy it.
The correlation of Lightspeed Commerce is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Lightspeed Commerce moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lightspeed Commerce moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Lightspeed Commerce can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Lightspeed Commerce position

In addition to having Lightspeed Commerce 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.

Did You Try This Idea?

Run Financials Thematic Idea Now

Financials
Financials Theme
Companies that provide financial services to business or retail customers. The Financials theme has 20 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Financials Theme or any other thematic opportunities.
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When determining whether Lightspeed Commerce is a strong investment it is important to analyze Lightspeed Commerce'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 Lightspeed Commerce's future performance. For an informed investment choice regarding Lightspeed Stock, refer to the following important reports:
Check out Correlation Analysis.
To learn how to invest in Lightspeed Stock, please use our How to Invest in Lightspeed Commerce guide.
You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
To fully project Lightspeed Commerce's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lightspeed Commerce 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 Lightspeed Commerce's income statement, its balance sheet, and the statement of cash flows.
Potential Lightspeed Commerce investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Lightspeed Commerce investors may work on each financial statement separately, they are all related. The changes in Lightspeed Commerce's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Lightspeed Commerce'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.