NASDAQ:LNTH, an undervalued stock with good fundamentals.

Last update: Nov 9, 2023

Our stock screening tool has pinpointed LANTHEUS HOLDINGS INC (NASDAQ:LNTH) as an undervalued stock option. NASDAQ:LNTH retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Valuation Analysis for NASDAQ:LNTH

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:LNTH scores a 8 out of 10:

A Price/Earnings ratio of 10.84 indicates a reasonable valuation of LNTH.
Based on the Price/Earnings ratio, LNTH is valued cheaply inside the industry as 97.01% of the companies are valued more expensively.
LNTH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.46.
LNTH is valuated reasonably with a Price/Forward Earnings ratio of 10.21.
Based on the Price/Forward Earnings ratio, LNTH is valued cheaper than 96.52% of the companies in the same industry.
LNTH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 18.80.
81.59% of the companies in the same industry are more expensive than LNTH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LNTH is valued cheaply inside the industry as 94.03% 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 14.90% in the coming years.

Understanding NASDAQ:LNTH's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:LNTH, the assigned 7 is noteworthy for profitability:

LNTH has a Return On Assets of 6.84%. This is amongst the best in the industry. LNTH outperforms 88.06% of its industry peers.
Looking at the Return On Equity, with a value of 14.90%, LNTH belongs to the top of the industry, outperforming 92.04% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.01%, LNTH belongs to the best of the industry, outperforming 93.53% of the companies in the same industry.
LNTH has a better Profit Margin (8.63%) than 86.07% of its industry peers.
LNTH has a Operating Margin of 15.55%. This is amongst the best in the industry. LNTH outperforms 89.05% of its industry peers.
LNTH has a Gross Margin of 63.31%. This is in the better half of the industry: LNTH outperforms 65.17% of its industry peers.
LNTH's Gross Margin has improved in the last couple of years.

Health Analysis for NASDAQ:LNTH

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:LNTH has received a 7 out of 10:

An Altman-Z score of 5.08 indicates that LNTH is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.08, LNTH belongs to the best of the industry, outperforming 80.60% of the companies in the same industry.
The Debt to FCF ratio of LNTH is 2.17, which is a good value as it means it would take LNTH, 2.17 years of fcf income to pay off all of its debts.
LNTH has a Debt to FCF ratio of 2.17. This is amongst the best in the industry. LNTH outperforms 91.04% 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 5.37 indicates that LNTH has no problem at all paying its short term obligations.
With a decent Current ratio value of 5.37, LNTH is doing good in the industry, outperforming 67.16% of the companies in the same industry.
LNTH has a Quick Ratio of 5.05. This indicates that LNTH is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 5.05, LNTH is in the better half of the industry, outperforming 70.15% of the companies in the same industry.

ChartMill's Evaluation of Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:LNTH boasts a 8 out of 10:

The Earnings Per Share has grown by an impressive 88.71% over the past year.
The Earnings Per Share has been growing by 33.91% on average over the past years. This is a very strong growth
Looking at the last year, LNTH shows a very strong growth in Revenue. The Revenue has grown by 50.43%.
LNTH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.05% yearly.
Based on estimates for the next years, LNTH will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.93% on average per year.
The Revenue is expected to grow by 14.68% on average over the next years. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of LNTH contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.