(LMND) Lemonade - Overview
Sector: Financial Services | Industry: Insurance - Property & Casualty | Exchange: NYSE (USA) | Market Cap: 4.406m USD | Total Return: 70.7% in 12m
Avg Turnover: 88.8M
Qual. Beats: 3
Rev. Trend: 98.9%
Qual. Beats: -1
Warnings
Choppy
Tailwinds
No distinct edge detected
Lemonade, Inc. (LMND) is a New York-based insurance provider operating across the United States, the United Kingdom, and Europe. The company offers a diversified suite of products including renters, homeowners, car, pet, and life insurance, while also acting as an agent for third-party carriers.
The company utilizes a vertically integrated InsurTech model, leveraging artificial intelligence and behavioral economics to automate underwriting and claims processing. Unlike traditional insurers that profit from unpaid claims, Lemonade employs a fixed-fee structure where excess premiums are often donated to nonprofits via its annual Giveback program.
The Property & Casualty insurance sector is increasingly defined by the integration of big data to refine risk assessment and customer acquisition costs. You can further analyze these operational metrics and valuation trends on ValueRay.
- Synthetic intelligence and machine learning models reduce loss ratios through improved underwriting precision
- Expansion into high-premium homeowners and car insurance segments accelerates total earned premium growth
- Reinsurance market volatility and rising catastrophe costs impact net loss and capital stability
- Regulatory approval cycles for rate increases determine profitability timelines across diverse geographic markets
| Net Income: -138.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA 3.04 > 1.0 |
| NWC/Revenue: 8.40% < 20% (prev 40.55%; Δ -32.14% < -1%) |
| CFO/TA 0.02 > 3% & CFO 30.1m > Net Income -138.9m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 1.06 > 1.5 & < 3 |
| Outstanding Shares: last quarter (76.3m) vs 12m ago 4.64% < -2% |
| Gross Margin: 47.58% > 18% (prev 0.37%; Δ 4.72k% > 0.5%) |
| Asset Turnover: 43.05% > 50% (prev 30.09%; Δ 12.96% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBITDA TTM and Interest Expense TTM) |
| A: 0.04 (Total Current Assets 1.31b - Total Current Liabilities 1.24b) / Total Assets 1.96b |
| B: -0.77 (Retained Earnings -1.50b / Total Assets 1.96b) |
| C: -0.07 (EBIT TTM -134.1m / Avg Total Assets 1.91b) |
| D: -1.04 (Book Value of Equity -1.50b / Total Liabilities 1.44b) |
| Altman-Z'' = -3.83 = D |
| DSRI: 0.81 (Receivables 594.6m/500.1m, Revenue 821.1m/558.6m) |
| GMI: 0.78 (GM 47.58% / 37.06%) |
| AQI: 1.41 (AQ_t 0.32 / AQ_t-1 0.23) |
| SGI: 1.47 (Revenue 821.1m / 558.6m) |
| TATA: -0.09 (NI -138.9m - CFO 30.1m) / TA 1.96b) |
| Beneish M = -2.89 (Cap -4..+1) = A |
As of May 26, 2026, the stock is trading at USD 56.52 with a total of 1,042,200 shares traded.
Over the past week, the price has changed by +10.07%,
over one month by -13.84%,
over three months by +9.01% and
over the past year by +70.65%.
Lemonade has received a consensus analysts rating of 2.44. Therefore, it is recommended to sell LMND.
- StrongBuy: 0
- Buy: 1
- Hold: 4
- Sell: 2
- StrongSell: 2
| Analysts Target Price | 60.1 | 6.4% |
P/S = 5.2166
P/B = 7.6153
Revenue TTM = 821.1m USD
EBIT TTM = -134.1m USD
EBITDA TTM = -120.7m USD
Long Term Debt = 179.6m USD (from longTermDebt, last quarter)
Short Term Debt = 179.6m USD (from shortTermDebt, last quarter)
Debt = 221.2m USD (from shortLongTermDebtTotal, last quarter) + Leases 20.8m
Net Debt = -356.6m USD (calculated: Debt 221.2m - CCE 577.8m)
Enterprise Value = 4.05b USD (4.41b + Debt 221.2m - CCE 577.8m)
Interest Coverage Ratio = unknown (Ebit TTM -134.1m / Interest Expense TTM 0.0)
EV/FCF = 207.7x (Enterprise Value 4.05b / FCF TTM 19.5m)
FCF Yield = 0.48% (FCF TTM 19.5m / Enterprise Value 4.05b)
FCF Margin = 2.37% (FCF TTM 19.5m / Revenue TTM 821.1m)
Net Margin = -16.92% (Net Income TTM -138.9m / Revenue TTM 821.1m)
Gross Margin = 47.58% ((Revenue TTM 821.1m - Cost of Revenue TTM 430.4m) / Revenue TTM)
Gross Margin QoQ = 43.13% (prev 62.95%)
Tobins Q-Ratio = 2.07 (Enterprise Value 4.05b / Total Assets 1.96b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 221.2m)
Taxrate = 21.0% (US default 21%)
NOPAT = -105.9m (EBIT -134.1m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.06 (Total Current Assets 1.31b / Total Current Liabilities 1.24b)
Debt / Equity = 0.43 (Debt 221.2m / totalStockholderEquity, last quarter 518.0m)
Debt / EBITDA = 2.95 (negative EBITDA) (Net Debt -356.6m / EBITDA -120.7m)
Debt / FCF = -18.29 (Net Debt -356.6m / FCF TTM 19.5m)
Total Stockholder Equity = 523.7m (last 4 quarters mean from totalStockholderEquity)
RoA = -7.28% (Net Income -138.9m / Total Assets 1.96b)
RoE = -6.86% (Net Income TTM -138.9m / Total Stockholder Equity 2.02b)
RoCE = -6.09% (EBIT -134.1m / Capital Employed (Equity 2.02b + L.T.Debt 179.6m))
RoIC = -11.80% (negative operating profit) (NOPAT -105.9m / Invested Capital 898.0m)
WACC = 10.49% (E(4.41b)/V(4.63b) * Re(11.02%) + D(221.2m)/V(4.63b) * Rd(0.0%) * (1-Tc(0.21)))
Discount Rate = 11.02% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 82.22 | Cagr: 3.91%
[DCF] Terminal Value 68.31% ; FCFF base≈19.5m ; Y1≈19.6m ; Y5≈20.7m
[DCF] Fair Price = 7.72 (EV 236.4m - Net Debt -356.6m = Equity 593.0m / Shares 76.8m; r=10.49% [WACC]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 1.37 | # QB: 3
Revenue Correlation: 98.90 | Revenue CAGR: 31.21% | SUE: -4.0 | # QB: -1
EPS current Quarter (2026-06-30): EPS=-0.56 | Chg30d=-5.25% | Revisions=+0% | Analysts=11
EPS next Quarter (2026-09-30): EPS=-0.52 | Chg30d=-35.55% | Revisions=-64% | Analysts=11
EPS current Year (2026-12-31): EPS=-1.73 | Chg30d=-3.55% | Revisions=-27% | GrowthEPS=+22.8% | GrowthRev=+63.4%
EPS next Year (2027-12-31): EPS=-0.81 | Chg30d=-21.00% | Revisions=-50% | GrowthEPS=+53.2% | GrowthRev=+33.7%
[Analyst] Revisions Ratio: -64%