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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3538
Positioning
Market Dominance
Manufacturing
Rubber And Plastic Products
$480M
Michael S. Lebby
Lightwave Logic focuses on the development of photonic devices and non-linear optical polymer materials systems. The company is involved in designing and synthesizing organic chromophores for use in its electro-optic polymer systems and photonic device designs.
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| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$LWLG Lightwave Logic, Inc. | 40 | 31 | 48 | 63 | - | - | -50.4% | -46.4% | 91.1% | -21042.7% | -20817.1% | 50.7% | 0.0% | 9.0x | $480M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
Lightwave Logic, Inc. (LWLG) receives a "Reduce" rating with a composite score of 40.0/100. It ranks #3538 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Outperforming peers — winners tend to keep winning over 3-12 months
Fair valuation relative to peers
Weak fundamentals — higher risk of value trap
High volatility — wider range of outcomes increases timing risk
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for LWLG.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 31 | 17 | +14ALPHA |
| MOMENTUM | 63 | 66 | -3NEUTRAL |
| VALUATION | 48 | 38 | +10ALPHA |
| INVESTMENT | 25 | 13 | +12ALPHA |
| STABILITY | 32 | 18 | +14ALPHA |
| SHORT INT | 28 | 17 | +11ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy -50.4% (sector -1.9%)
GM 91% vs sector 44%, OM -21043% vs sector 3%
Capital turnover N/A, R&D intensity 11132.5%
Rev growth 51%, 10yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Lightwave Logic, Inc. (LWLG) as a Reduce with a composite score of 40.0/100 at a current price of $4.08. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
Lightwave Logic, Inc. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 40.0/100 places it at rank #3538 in our full universe.
The near-term outlook is constructive, with revenue growing at 51% and momentum in the 63th percentile confirming positive market sentiment. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy.
No Moat
High
Poor
Fair Value
Gross margins of 91% signal strong pricing power.
Stable competitive position in a defensive sector.
Below-average quality raises earnings sustainability concerns.
Vulnerability to macroeconomic shocks and interest rate volatility.
Lightwave Logic, Inc. represents a reduce based on multi-factor quantitative performance.
Lightwave Logic, Inc. receives a Reduce rating from our analysis, with a composite score of 40.0/100 and 2 out of 5 stars, ranking #3538 out of 7,333 stocks. LWLG's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
LWLG's quality score of 31/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -50.4% (sector avg: -1.9%), gross margins of 91.1% (sector avg: 44.1%), net margins of -20817.1% (sector avg: 1.0%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
With a value score of 48/100, LWLG appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/B ratio of 12.22x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
Lightwave Logic, Inc.'s investment score of 25/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 50.7% vs. a sector average of 6.7% and a return on assets of -46.4% (sector: 0.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
LWLG demonstrates moderate momentum with a score of 63/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 50.7% year-over-year, while a beta of 1.21 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
LWLG's stability score of 32/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 1.21 and a debt-to-equity ratio of 9.00x (sector avg: 0.2x). Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
Lightwave Logic, Inc.'s short interest score of 28/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include above-average market sensitivity (beta: 1.21), elevated leverage (D/E: 9.00x), small-cap liquidity risk. At $480M (small-cap), LWLG carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
Lightwave Logic, Inc. is a small-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #3538 of 7,333 overall (52nd percentile). Key comparisons include ROE of -50.4% trailing the -1.9% sector median and operating margins of -21042.7% below the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While LWLG currently exhibits a REDUCE profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
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Improvement in Investment (25) would have the largest impact on the composite score.
ROE 2554% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 107% ABOVE SECTOR MEDIAN (FAVORABLE)
Op. Margin 838453% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
Companies to jointly develop PDK for PIC-based quantum solutions ENGLEWOOD, COLORADO / ACCESS Newswire / January 15, 2026 /Lightwave Logic, Inc. (NASDAQ:LWLG) (the "Company"), a technology platform company leveraging its proprietary electro-optic ...
Dr. Chowdhury brings extensive, large corporation experience in disruptive optical technologies and intellectual property ENGLEWOOD, COLORADO / ACCESS Newswire / January 12, 2026 /Lightwave Logic, Inc. (NASDAQ:LWLG) (the "Company"), a technology platform ...

Three small-cap stocks, Argan, Lightwave Logic, and Lexicon Pharmaceuticals, posted significant gains last week despite broader market uncertainty, with Lexicon surging 58% on a licensing deal with Novo Nordisk.

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