Lightwave Logic, Inc.

Lightwave Logic, Inc.

LWLGยทNASDAQ

$12.29

-0.90%
Basic MaterialsChemicals - Specialty

Lightwave Logic, Inc., a development stage company, focuses on the development of photonic devices and non-linear optical polymer materials systems for fiber-optic data communications and optical computing markets in the United States. The company is involved in designing and synthesizing organic chromophores for use in its electro-optic polymer systems and photonic device designs. It also offers electro-optic modulators, which converts data from electric signals to optical signals for transmission over fiber-optic cables; and polymer photonic integrated circuits, a photonic device, which integrates various photonic functions on a single chip. In addition, the company provides the ridge waveguide modulator, a modulator that fabricates the waveguide within a layer of its electro-optic polymer system. It focuses on selling its products to electro-optic device manufacturers, such as telecommunications component and systems manufacturers, networking and switching suppliers, semiconductor companies, Web 2.0 media, computing companies, aerospace companies, and government agencies. The company was formerly known as Third-order Nanotechnologies, Inc. and changed its name to Lightwave Logic, Inc. in March 2008. Lightwave Logic, Inc. was founded in 1991 and is headquartered in Englewood, Colorado.

At a Glance

Live Snapshot
Market Cap$1.89B
EPS-0.1600
P/E Ratio-20.52
Earnings Date08/13/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

Medium confidence

Valuation multiple is compressed (P/E -20.5).

Valuation inputs: P/E -20.5, earnings yield N/A, momentum -0.9%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE -27.2%, ROIC -26.0%).

Profitability stack: net margin -85.8%, ROE -27.2%, ROIC -26.0%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +8.6%, momentum -0.9%, net margin -85.8%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

lwlg

Lightwave Logic, Inc. Market vs Earnings Trajectory

LWLG ยท NASDAQ

Loading price and EPS data...

Lightwave Logic, Inc.

Lightwave Logic, Inc. Fair Value Envelope

LWLG ยท NASDAQ

Our analysis suggests that LWLG has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $12.29, this represents a potential HIDDEN relative to our calculated worth for Lightwave Logic, Inc..

Intrinsic Value
Current Price: $12.29
3Y+7.0%
5Y+119.0%
10Y+140.0%
3Y-
5Y-
10Y-
3Y+18.0%
5Y+202.0%
10Y+361.0%
3Y+31.0%
5Y+182.0%
10Y+336.0%
3Y+25.0%
5Y+196.0%
10Y+351.0%
3Y+179.0%
5Y+1009.0%
10Y+2462.0%
Lightwave Logic, Inc.

Lightwave Logic, Inc. Profit Bridge

LWLG ยท NASDAQ
Revenue236.85K
Cost of Goods Sold (2.12M)
Gross Profit-1.88M
Operating Expenses (18.88M)
Operating Income-20.76M
Interest Expense (0.00)
Other Income/Expense447.63K
Pretax Income-20.31M
Income Tax (0.00)
Net Income-20.31M
Net Income
-20.31M

Profitability Analysis

Gross Margin

-793.2%

Negative gross margin indicates the company is losing money on each saleโ€”unsustainable long-term.

Operating Margin

-8765.5%

Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.

Net Profit Margin

-8576.5%

Net losses indicate the company is burning cash. Sustainability depends on path to profitability.

Profitability Insight

High margin compression: Large gap between gross and net margins suggests operational inefficiencies or heavy debt burden. Focus on expense management and deleveraging.

-793.18%
Gross Profit Margin
-960%
3Y-
5Y-
10Y-
-8765.46%
Operating Profit Margin
-64%
3Y-
5Y-
10Y-
-8576.47%
Net Profit Margin
-64%
3Y-
5Y-
10Y-
-27.21%
Return on Equity
-60%
3Y-56.0%
5Y-77.0%
10Y-81.0%
-24.87%
Return on Assets
-58%
3Y-58.0%
5Y-73.0%
10Y-82.0%
-26.04%
Return on Invested Capital
-59%
3Y-58.0%
5Y-74.0%
10Y-81.0%
LWLG

Lightwave Logic, Inc. Cash Conversion Engine

LWLG ยท NASDAQ
Net Income-20.31M
Depreciation & Amortization2.11M
Stock-Based Compensation551.47K
Change in Working Capital-622.24K
Others4.53M
Capital Expenditures-1.33M
Free Cash Flow-15.08M

Cash Flow Quality Analysis

FCF Conversion Rate

74.2%

Moderate conversion rate. Some gap between earnings and cash flow may warrant investigation into working capital or non-cash items.

CapEx Intensity

-9.7%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+17.4%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

-$622.24K

Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.

Cash Flow Quality Insight

Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.

lwlg

Lightwave Logic, Inc. Funding & Solvency Profile

LWLG ยท NASDAQ
Cash & Cash Equivalents75.10M
Net Receivables215.75K
Inventory0.00
Other Current Assets1.18M
Total Current Assets77 M
Property, Plant & Equipment7.58M
Goodwill & Intangible Assets1.83M
Long-Term Investments0.00
Other Non-Current Assets0.00
Total Non-Current Assets8 M
Total Assets
85.91M

Financial Health Analysis

Current Ratio

33.99x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.03x

Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.

Working Capital

74 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

89% Current

Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

lwlg

Lightwave Logic, Inc. Street Expectations Map

LWLG ยท NASDAQ

No Target Data

No analyst price targets available for lwlg.

lwlg

Lightwave Logic, Inc. Insider Positioning

LWLG ยท NASDAQ

During the last 12 months, insiders have sold $1.45M worth of LWLG shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

141.9K

1.12M

Net Activity

-1.1M

-$1.12M

3-6 Months

Bought

0

0.00

Sold

92.5K

306.17K

Net Activity

-306K

-$306K

6-9 Months

Bought

0

0.00

Sold

6.0K

25.53K

Net Activity

-26K

-$26K

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

No buying activity

Top Sellers

1
ESN

El-Ahmadi Siraj Nour

Director

129.4K sharesโ€ข3 transactions

$667K

2
QSP

Quan Snizhana P.

Officer: Principal Financial Officer

45.3K sharesโ€ข3 transactions

$393K

3
CTMJ

Connelly Thomas M Jr

Director

22.6K sharesโ€ข3 transactions

$127K

4
PL

Partridge Laila

Director

21.0K sharesโ€ข2 transactions

$112K

5
BRA

Bucchi Ronald A

Director

11.0K sharesโ€ข1 transactions

$76K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $1.45M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$1.12M

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Selling

5 insider sellers vs. 0 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

LWLG has not reported any dividend yield values in the available annual periods.

ย 

lwlg Dividend History

LWLG
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%