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LifeVantage Corporation

LFVN
51
Packaged Foods · Consumer Defensive
Exchange
NASDAQ
Winston Score
51
Winston is curious
Mixed quality — meaningful strengths and weaknesses.

LifeVantage Corporation engages in the identification, research, development, formulation, sale, and distribution of nutrigenomic activators, dietary supplements, nootropics, pre- and pro-biotics, weight management, skin and hair care products, bath and body, and targeted relief products. The company offers Protandim, a line of scientifically validated dietary supplements; LifeVantage Omega+, a dietary supplement that combines DHA and EPA Omega-3 fatty acids, Omega-7 fatty acids, and vitamin D3;

Winston Score History

Score breakdown

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Quality

Gross Margin
79.0%
Premium pricing power — 79.0% gross margin
Operating Margin
3.8%
Thin — 3.8% operating margin
ROCE
3.9%
Weak — 3.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-3.0%
Shrinking sales (-3.0% YoY)
EPS YoY
-7.8%
Earnings shrinking (-7.8% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
156%
Turns 156% of profit into real cash
FCF Margin
4.1%
Thin free cash flow (4.1%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.31
Conservative — low debt load (0.31)
Interest Cover
100.00x
Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
13.4x
no trend
Attractive valuation — P/E 13.4

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
-0.2
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield
2.97%
no trend
Moderate income — 2.97% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+12.1%
no trend
Dividend growing fast (12.1% YoY)

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