Luckin Coffee Valuation

Luckin Coffee Investor Information

About 16.0% of the company outstanding shares are owned by corporate insiders. The company recorded a loss per share of 16767.67. Luckin Coffee had not issued any dividends in recent years. Luckin Coffee Inc. engages in the retail sale of freshly brewed drinks, and pre-made food and beverage items in the Peoples Republic of China. The company was founded in 2017 and is based in Xiamen, the Peoples Republic of China. Luckin Coffee operates under Restaurants classification in the United States and is traded on BATS Exchange. It employs 10753 people. To find out more about Luckin Coffee contact the company at 86 59 2338 6666 or learn more at http://www.luckincoffee.com.

Luckin Coffee Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Luckin Coffee has an asset utilization ratio of 24.12 percent. This suggests that the Company is making $0.24 for each dollar of assets. An increasing asset utilization means that Luckin Coffee is more efficient with each dollar of assets it utilizes for everyday operations.

Luckin Coffee Ownership Allocation

Luckin Coffee holds a total of 253.15 Million outstanding shares. The majority of Luckin Coffee outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Luckin Coffee to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Luckin Coffee. Please pay attention to any change in the institutional holdings of Luckin Coffee as this could imply that something significant has changed or is about to change at the company. Remember, it does not matter who owns the company or if the company is currently losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.

Luckin Coffee Profitability Analysis

The company generated the yearly revenue of 752.2 M. Annual Net Loss to common stockholders was (1.57 B) with gross profit of 308.48 M.

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Luckin Coffee does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.

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If you are still planning to invest in Luckin Coffee check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Luckin Coffee's history and understand the potential risks before investing.