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Investors should take note of NASDAQ:LNTH, a growth stock that remains attractively priced.

By Mill Chart

Last update: Dec 15, 2023

Our stock screener has spotted LANTHEUS HOLDINGS INC (NASDAQ:LNTH) as a growth stock which is not overvalued. NASDAQ:LNTH is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Understanding NASDAQ:LNTH's Growth

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:LNTH has achieved a 8 out of 10:

  • LNTH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 88.71%, which is quite impressive.
  • 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 50.42%.
  • LNTH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.06% yearly.
  • The Earnings Per Share is expected to grow by 18.38% on average over the next years. This is quite good.
  • Based on estimates for the next years, LNTH will show a quite strong growth in Revenue. The Revenue will grow by 17.46% on average per year.

ChartMill's Evaluation of Valuation

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 7 out of 10:

  • Based on the Price/Earnings ratio, LNTH is valued cheaply inside the industry as 96.53% of the companies are valued more expensively.
  • LNTH is valuated rather cheaply when we compare the Price/Earnings ratio to 25.64, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio, LNTH is valued cheaper than 97.03% of the companies in the same industry.
  • LNTH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.21, which is the current average of the S&P500 Index.
  • 79.21% of the companies in the same industry are more expensive than LNTH, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of LNTH indicates a rather cheap valuation: LNTH is cheaper than 93.07% of the companies listed in the same industry.
  • LNTH's 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.
  • LNTH's earnings are expected to grow with 18.85% in the coming years. This may justify a more expensive valuation.

Looking at the Health

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:

  • An Altman-Z score of 5.73 indicates that LNTH is not in any danger for bankruptcy at the moment.
  • LNTH has a better Altman-Z score (5.73) than 81.19% of its industry peers.
  • 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's Debt to FCF ratio of 2.17 is amongst the best of the industry. LNTH outperforms 90.59% of its industry peers.
  • Although LNTH does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
  • A Current Ratio of 5.37 indicates that LNTH has no problem at all paying its short term obligations.
  • The Current ratio of LNTH (5.37) is better than 69.80% of its industry peers.
  • 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.
  • LNTH's Quick ratio of 5.05 is fine compared to the rest of the industry. LNTH outperforms 73.76% of its industry peers.

A Closer Look at Profitability for 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 7 is a significant indicator of profitability:

  • Looking at the Return On Assets, with a value of 6.84%, LNTH belongs to the top of the industry, outperforming 88.12% of the companies in the same industry.
  • LNTH has a Return On Equity of 14.90%. This is amongst the best in the industry. LNTH outperforms 92.08% of its industry peers.
  • With an excellent Return On Invested Capital value of 11.01%, LNTH belongs to the best of the industry, outperforming 93.07% of the companies in the same industry.
  • LNTH's Profit Margin of 8.63% is amongst the best of the industry. LNTH outperforms 84.16% of its industry peers.
  • The Operating Margin of LNTH (15.55%) is better than 88.61% of its industry peers.
  • LNTH has a Gross Margin of 63.31%. This is in the better half of the industry: LNTH outperforms 65.84% of its industry peers.
  • 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.

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.

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LANTHEUS HOLDINGS INC

NASDAQ:LNTH (11/21/2024, 4:48:16 PM)

After market: 87.05 -0.27 (-0.31%)

87.32

+0.87 (+1.01%)

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