Lifevantage Corp (LFVN) stock analysis

P/E above its 5-year median

Lifevantage's P/E of 22.5 is above its own 5-year median of 18.1.

P/E below the industry

Lifevantage's P/E of 22.5 is below the Drugs median of 25.1.

EV/EBITDA above its 5-year median

Lifevantage's EV/EBITDA of 6.9 is above its 5-year median of 6.7.

P/B below the industry

Lifevantage's price-to-book of 1.78 is below the Drugs median of 2.29.

Trading below fair value

The share price of $4.72 is below our fair value estimate of $6.51.

Margin of safety over 20%

The price is 27.5% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -5.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 26.0% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -73.1% over the last twelve months, against a 5-year average of -17.0% a year.

Growing slower than the industry

Revenue grew -24.8% over the last twelve months; the Drugs median is 8.0%.

Guidance lowered

Lifevantage lowered its full year full year tax rate outlook on May 6, 2026.

Gross margin slipping

Gross margin was 76.5% over the last twelve months, against 80.3% a year earlier.

Return on equity under 15%

Return on equity was 8.2% over the last twelve months and averaged 14.7% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 14.0%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Lifevantage's return on equity of 8.2% is above the Drugs median of -58.9%.

Earnings shrank over 5 years

Net income shrank 17.0% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 1.6% over the last twelve months, against a 5-year average of 2.2%.

Net margin above the industry

Lifevantage's net margin of 1.6% is above the Drugs median of -53.0%.

No debt

Lifevantage has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 1.91 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.35; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Lifevantage paid dividends worth 4.0% of the share price over the last twelve months.

Yield below Treasuries

The 4.0% yield is below the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Lifevantage yields 4.0%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 5 fiscal years.

Covered by earnings

Dividends take 88.2% of net income.

Covered by free cash flow

Dividends take 27.6% of free cash flow.