While growth is established for NASDAQ:LNTH, the stock's valuation remains reasonable.

Last update: Sep 28, 2023

LANTHEUS HOLDINGS INC (NASDAQ:LNTH) was identified as an affordable growth stock by our stock screener. NASDAQ:LNTH is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Looking at the Growth

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:LNTH, the assigned 8 reflects its growth potential:

The Earnings Per Share has grown by an impressive 145.21% over the past year.
LNTH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.91% yearly.
LNTH shows a strong growth in Revenue. In the last year, the Revenue has grown by 69.36%.
The Revenue has been growing by 23.05% on average over the past years. This is a very strong growth!
LNTH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.39% yearly.
LNTH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.49% yearly.

A Closer Look at Valuation for NASDAQ:LNTH

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:LNTH boasts a 8 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of LNTH indicates a rather cheap valuation: LNTH is cheaper than 95.50% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.59. LNTH is valued rather cheaply when compared to this.
LNTH is valuated reasonably with a Price/Forward Earnings ratio of 10.56.
97.00% of the companies in the same industry are more expensive than LNTH, based on the Price/Forward Earnings ratio.
LNTH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 18.75.
Based on the Enterprise Value to EBITDA ratio, LNTH is valued a bit cheaper than 78.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LNTH is valued cheaply inside the industry as 95.50% of the companies are valued more expensively.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of LNTH may justify a higher PE ratio.
A more expensive valuation may be justified as LNTH's earnings are expected to grow with 18.78% in the coming years.

Assessing Health Metrics for NASDAQ:LNTH

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:LNTH has earned a 7 out of 10:

LNTH has an Altman-Z score of 5.11. This indicates that LNTH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LNTH (5.11) is better than 79.50% of its industry peers.
The Debt to FCF ratio of LNTH is 2.29, which is a good value as it means it would take LNTH, 2.29 years of fcf income to pay off all of its debts.
LNTH's Debt to FCF ratio of 2.29 is amongst the best of the industry. LNTH outperforms 92.50% of its industry peers.
Even though the debt/equity ratio score it not favorable for LNTH, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
A Current Ratio of 4.88 indicates that LNTH has no problem at all paying its short term obligations.
The Current ratio of LNTH (4.88) is better than 62.00% of its industry peers.
A Quick Ratio of 4.55 indicates that LNTH has no problem at all paying its short term obligations.
The Quick ratio of LNTH (4.55) is better than 66.00% of its industry peers.

Profitability Insights: NASDAQ:LNTH

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:LNTH, the assigned 6 is a significant indicator of profitability:

Looking at the Return On Assets, with a value of 2.49%, LNTH is in the better half of the industry, outperforming 78.50% of the companies in the same industry.
LNTH has a better Return On Equity (6.04%) than 80.50% of its industry peers.
LNTH's Return On Invested Capital of 10.74% is amongst the best of the industry. LNTH outperforms 92.50% of its industry peers.
LNTH's Profit Margin of 2.97% is fine compared to the rest of the industry. LNTH outperforms 75.50% of its industry peers.
With an excellent Operating Margin value of 14.30%, LNTH belongs to the best of the industry, outperforming 86.50% of the companies in the same industry.
With a decent Gross Margin value of 63.18%, LNTH is doing good in the industry, outperforming 66.00% of the companies in the same industry.
In the last couple of years the Gross Margin of LNTH has grown nicely.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of LNTH

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.