Lipocine, Inc. (LPCN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Hepion Pharmaceuticals, Inc.

Why is Lipocine, Inc. ?

Poor Management Efficiency with a low ROE of 1.45%

The company has been able to generate a Return on Equity (avg) of 1.45% signifying low profitability per unit of shareholders funds

The company has declared negative results for the last 5 consecutive quarters

The company has declared negative results in Mar 25 after 4 consecutive negative quarters
NET SALES(HY) At USD 1.26 MM has Grown at -64.72%
OPERATING CASH FLOW(Y) Lowest at USD -10.06 MM
ROCE(HY) Lowest at -54.41%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -19.43%, its profits have fallen by -962%

Below par performance in long term as well as near term

Along with generating -19.43% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Lipocine, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Lipocine, Inc.

-22.81%

-0.62

110.76%

S&P 500

20.78%

1.67

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.41%

EBIT Growth (5y)

7.32%

EBIT to Interest (avg)

-8.12

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-1.03

Sales to Capital Employed (avg)

0.25

Tax Ratio

0.01%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

26.93%

ROCE (avg)

33.06%

ROE (avg)

1.45%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.61

EV to EBIT

-3.59

EV to EBITDA

-3.61

EV to Capital Employed

-37.26

EV to Sales

18.85

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

-66.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.07% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -108.32 %

-32What is not working for the Company

NET SALES(HY)

At USD 1.26 MM has Grown at -64.72%

OPERATING CASH FLOW(Y)

Lowest at USD -10.06 MM

ROCE(HY)

Lowest at -54.41%

CASH AND EQV(HY)

Lowest at USD 39.66 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 13.79 times

OPERATING PROFIT(Q)

Lowest at USD -3.83 MM

PRE-TAX PROFIT(Q)

Lowest at USD -3.67 MM

NET PROFIT(Q)

Lowest at USD -3.67 MM

Here's what is working for Lipocine, Inc.

Debt-Equity Ratio

Lowest at -108.32 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -5.07% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Lipocine, Inc.

Net Sales

At USD 1.26 MM has Grown at -64.72%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Pre-Tax Profit

At USD -3.67 MM has Fallen at -52.56%

over average net sales of the previous four periods of USD -2.41 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -3.67 MM has Fallen at -52.56%

over average net sales of the previous four periods of USD -2.41 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD -10.06 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Operating Profit

Lowest at USD -3.83 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Pre-Tax Profit

Lowest at USD -3.67 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -3.67 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 39.66 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 13.79 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio