LifeStance Health Group, Inc.
$7.50
-5.5%LifeStance Health Group, Inc., through its subsidiaries, provides outpatient mental health services. The company offers patients a suite of mental health services, including psychiatric evaluations and treatment, psychological, and neuropsychological testing, as well as individual, family, and group therapy. It treats a range of mental health conditions, including anxiety, depression, bipolar disorder, eating disorders, psychotic disorders, and post-traumatic stress disorder. In addition, the company operates outpatient mental health platform as well as offers patients care virtually through its online delivery platform or in-person at its centers in 32 states. It serves children, adolescents, adults, and geriatrics. LifeStance Health Group, Inc. was founded in 2017 and is based in Scottsdale, Arizona.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is elevated (P/E 250.0).
Valuation inputs: P/E 250.0, earnings yield +0.4%, momentum -5.5%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +0.6%, ROIC +1.0%).
Profitability stack: net margin +0.7%, ROE +0.6%, ROIC +1.0%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +31.0%, momentum -5.5%, net margin +0.7%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
LifeStance Health Group, Inc. Market vs Earnings Trajectory
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LifeStance Health Group, Inc. Fair Value Envelope
LifeStance Health Group, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.
Operating Margin
Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.
Net Profit Margin
Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.
LifeStance Health Group, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
LifeStance Health Group, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Conservative with tight liquidity: Low debt is positive, but current ratio warrants attention. Consider whether the company is efficiently deploying its equity capital.
LifeStance Health Group, Inc. Street Expectations Map
Wall Street analysts project that LFST stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 9.70, with estimates ranging from a low of 8.00 to a high of 11.00.
The consensus 1-year price target stands at 9.70, with estimates ranging from a low of 8.00 to a high of 11.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
LifeStance Health Group, Inc. Insider Positioning
During the last 12 months, insiders have purchased $85K and sold $282.73M worth of LFST shares, resulting in $282.65M of net selling activity.
3 Months
0
0.00
360.0K
2.87M
-2.9M
-$2.87M
3-6 Months
0
0.00
25.1M
176.02M
-176.0M
-$176.02M
6-9 Months
0
0.00
57.2K
368.05K
-368K
-$368K
9-12 Months
18.7K
84.72K
20.4M
103.47M
-103.4M
-$103.38M
Top Buyers
Burdick Kenneth A
Director
$85K
Top Sellers
Tpg Gp A, Llc
10 Percent Owner
$145.00M
Black Darren M.
Director
$72.87M
Summit Partners L P
10 Percent Owner
$42.63M
Silversmith Partners I Gp, Llc
Other: Member Of 10% Group
$18.21M
Bessler Robert
Director
$3.65M
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $282.65M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
No Dividend Yield Data
LFST has not reported any dividend yield values in the available annual periods.
lfst Dividend History
Learning Layer
Related Guides
Build conviction on LFST by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.