Professional
Added to YB: 2025-12-30
Pitch date: 2025-05-12
LMND [bearish]
Lemonade, Inc.
-122.39%
current return
Author Info
Cedar Street Research delivers unique insights by leveraging an unconventional approach to financial analysis, combining the power of historical trends with bespoke data in order to uncover deep, actionable predictions about the future. We specialize in insurance companies, but extend our services to banks and specialty finance firms as well. Sign up for the newsletter.
Company Info
Lemonade, Inc. provides various insurance products in the United States, Europe, and the United Kingdom.
Market Cap
$5.6B
Pitch Price
$32.07
Price Target
N/A
Dividend
N/A
EV/EBITDA
-38.85
P/E
-31.43
EV/Sales
8.18
Sector
Insurance
Category
N/A
Lemonade Inc.: Cheeky Financial Reporting Paired with Failed Launches into Auto & Homeowners and a Pet Portfolio 'Aging' like Fine Wine
LMND (bearish): Negative outlook on insurer with 172.5% combined ratio, 98% expense ratio, $202M net loss. Pet portfolio aging causing adverse development, auto rate deficient in 3/7 states (ceased NJ ops), homeowners flat at $180M. Demotech A rating vs AM Best B- equivalent. Heavy reinsurance reliance (55% ceded), MetroMile acquisition struggling at 101% loss ratio. Estimate continued ~$200M GAAP losses through 2025-27.
Read full article (21 min)