Lucid Group Inc. Rated Low by Benjamin Graham Model

Lucid Group Inc. Receives a 43% Rating. The company's fundamentals do not meet several key tests in the value investing framework, raising concerns for potential investors.

Date: 27-01-2025

AI Rating: 4

Stock Evaluation
LUCID GROUP INC (LCID) has received a rating of 43% based on its underlying fundamentals and stock valuation using Benjamin Graham's Value Investor model. This score is significantly below the threshold of 80%, which indicates a lack of strong investor interest in the stock.

Performance Summary
The company has passed only three out of the nine fundamental tests outlined by the investment strategy, indicating weaknesses in several critical areas. Here are the key points of failure:

Sales: FAIL
Long-Term EPS Growth: FAIL
P/E Ratio: FAIL
Price/Book Ratio: FAIL

This indicates that Lucid's earnings per share (EPS) growth prospects are not meeting investor expectations, which is crucial in determining future profitability and stock price appreciation.

Financial Ratios and Indicators
Although LUCID passed tests related to its sector, current ratio, and long-term debt, the failures in sales, EPS growth, P/E and Price/Book ratios raise significant red flags for potential investors. These factors are critical as they impact revenue growth and investor sentiment.

Given the current state of Lucid's financials, investors may find the stock less attractive as it does not meet the standards of long-term earnings or maintain favorable valuation multiples, leading to a bearish outlook.

Overall, the report suggests a cautious approach to investing in LUCID GROUP INC based on the disappointing ratings derived from fundamental evaluations in this value investment strategy.

Stocks: LCID