Face it, people, it's time to send this TURD to the SEPTIC TANK! FLUSH!
PROFIT MARGIN: [FAIL] This methodology seeks companies with a minimum trailing 12 month after tax profit margin of 7%. The companies that pass this criterion have strong positions within their respective industries and offer greater shareholder returns. A true test of the quality of a company is that they can sustain this margin. LENS's profit margin of -12.08% fails this test.
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: [FAIL] Companies must demonstrate both revenue and net income growth of at least 25% as compared to the prior year. These growth rates give you the dynamic companies that you are looking for. These rates for LENS (-112.00% for EPS, and -43.73% for Sales) are not good enough to pass.
INSIDER HOLDINGS: [FAIL] LENS's insiders should own at least 10% (they own 2.60%) of the company's outstanding shares. This does not satisfy the minimum requirement, and companies that do not pass this criteria are less attractive.
CASH FLOW FROM OPERATIONS: [FAIL] A positive cash flow is typically used for internal expansion, acquisitions, dividend payments, etc. A company that generates rather than consumes cash is in much better shape to fund such activities on their own, rather than needing to borrow funds to do so. LENS's free cash flow of $-0.48 per share fails this test.
PROFIT MARGIN CONSISTENCY: [FAIL] The profit margin in the past must be consistently increasing. The profit margin of LENS has been inconsistent in the past three years (Current year: -6.42%, Last year: 11.32%, Two years ago: 6.51%), which is unacceptable. This inconsistency will carryover directly to the company's bottom line, or earnings per share.
LONG TERM DEBT/EQUITY RATIO: [FAIL] LENS's trailing twelve-month Debt/Equity ratio (10.00%) is too high, according to this methodology. You can find other more superior companies that do not have to borrow money in order to grow.
LONG-TERM EPS GROWTH RATE RELATIVE TO GROWTH IN THE LATEST 2 QUARTERS: [FAIL] This methodology looks unfavorably at any company whose earnings growth in the latest 2 quarters has been less than half of the long-term earnings growth rate. LENS fails this criterion, as earnings growth in the 2 most recent quarters (-308.1% for Q6 to Q2 and -112.0% for Q5 to Q1) have slowed substantially to a point less than its long-term growth rate of 30.0%.
RETURN ON EQUITY: [FAIL] Preferred companies must have a ROE of at least 17%. LENS's ROE of -11.6% is below the minimum 17% that this methodology likes to see, and therefore fails the criterion.
SALES GROWTH RATE: [FAIL] Another important issue regarding sales growth is that the rate of quarterly sales growth is rising. To evaluate this, the change from this quarter last year to the present quarter (-43.7%) must be examined, and then compared to the previous quarter last year compared to the previous quarter (-31.8%) of the current year. Sales growth for the prior must be greater than the latter. For LENS this criterion has not been met and fails this test.
PRICE/SALES RATIO: [FAIL] The prospective company should have a low Price/Sales ratio. Smokestack (cyclical) companies with Price/Sales ratios greater than .8 are considered very unattractive and should even be sold according to this methodology. LENS's P/S ratio of 1.03 based on trailing 12 month sales, exceeds the acceptable level for cyclical companies, being extremely unfavorable