Lemonade Inc (LMND) Stock Analysis
Verdict: AVOID
Hyper-growth and narrowing losses are overshadowed by a 'sell-the-news' reaction to CFO changes and extreme valuation vs. legacy peers.
Investment score: 38/100
Analysis as of
Is Lemonade Inc stock worth reviewing? The TradeMates thesis
Lemonade continues to scale rapidly but faces a severe crisis of confidence following its latest earnings report and executive turnover.
7-factor investment score
- Valuation: 25/100 (weight 20%)
- Financial Health: 45/100 (weight 15%)
- Technical Momentum: 20/100 (weight 15%)
- Earnings Quality: 75/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 55/100 (weight 10%)
- Risk-Adjusted Return: 30/100 (weight 15%)
Lemonade Inc opportunities and risks
What speaks for LMND
- Path to Profitability by 2028
What speaks against LMND
- Extreme Technical Momentum Breakdown
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| LMND | n/a | 4.4x | n/a | 47.6% | -16.9% | 0.5% |
| MCY | 7.1x | 1.0x | 4.6x | 43.9% | 13.7% | 23.6% |
| SIGI | 12.0x | 1.1x | 7.4x | 48.2% | 9.1% | 20.6% |
| WTM | 5.3x | 2.0x | 4.6x | 59.0% | 39.4% | 11.8% |
| NP | 24.6x | 24.2x | 42.4x | 67.1% | 28.4% | 2.2% |
| PLMR | 19.3x | 3.9x | 15.0x | 60.6% | 20.2% | 9.5% |
| Peer median | 12.0x | 2.0x | 7.4x | 59.0% | 20.2% | 11.8% |
Frequently asked questions about Lemonade Inc (LMND)
Is LMND stock a good investment?
The TradeMates model rates Lemonade Inc as AVOID with an investment score of 38/100. Lemonade continues to scale rapidly but faces a severe crisis of confidence following its latest earnings report and executive turnover. This is algorithmic model output, not personal investment advice.
Is LMND stock a buy?
The TradeMates model verdict for LMND is AVOID with an investment score of 38/100. Treat this as a model signal to review, not a personal buy recommendation.