A smart lighting business like LIFX ought to be operating at a substantially higher gross profit margin as it is in the niche premium end of the market. Beacon (BLX) for instance has a 65% GP margin.
Notably the GP margin of LIFX dropped from 35% in 2017 to 28.8% in 2018, and a drop in margin usually reflects higher competitive forces at work.
|
Column 1 |
Column 2 |
Column 3 |
| 1 |
|
BUD/LIFX |
BLX |
| 2 |
Shares issued |
1,797.05 |
218.16 |
| 3 |
Stock price |
$ 0.067 |
$ 1.150 |
| 4 |
Market cap |
$ 120.40 |
$ 250.89 |
| 5 |
Annual Revenues |
$ 40.00 |
$ 256.60 |
| 6 |
Market cap/rev |
3.01 |
0.98 |
| 7 |
Net Profit/ (Loss) |
-$ 22.37 |
$ 23.30 |
| 8 |
Gross Profit Margin% |
28.8% |
64.9% |
In contrast to BLX, the numbers from the combined BUD/LIFX business does not look compelling from a valuation perspective.
