Despite its impressive fundamentals, NASDAQ:LNTH remains undervalued.

Last update: Dec 25, 2023

LANTHEUS HOLDINGS INC (NASDAQ:LNTH) has caught the attention of our stock screener as a great value stock. NASDAQ:LNTH excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

What does the Valuation looks like for NASDAQ:LNTH

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:LNTH has received a 9 out of 10:

With a Price/Earnings ratio of 10.19, the valuation of LNTH can be described as very reasonable.
Based on the Price/Earnings ratio, LNTH is valued cheaply inside the industry as 97.51% 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 25.95.
Based on the Price/Forward Earnings ratio of 9.53, the valuation of LNTH can be described as reasonable.
98.51% of the companies in the same industry are more expensive than LNTH, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LNTH to the average of the S&P500 Index (20.89), we can say LNTH is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, LNTH is valued cheaply inside the industry as 86.07% of the companies are valued more expensively.
LNTH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LNTH is cheaper than 96.52% of the companies 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.
LNTH has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as LNTH's earnings are expected to grow with 18.85% in the coming years.

A Closer Look at Profitability for NASDAQ:LNTH

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:LNTH was assigned a score of 7 for profitability:

LNTH's Return On Assets of 6.84% is amongst the best of the industry. LNTH outperforms 88.06% of its industry peers.
LNTH has a better Return On Equity (14.90%) than 91.54% of its industry peers.
LNTH has a Return On Invested Capital of 11.01%. This is amongst the best in the industry. LNTH outperforms 92.54% of its industry peers.
LNTH has a better Profit Margin (8.63%) than 84.08% of its industry peers.
LNTH's Operating Margin of 15.55% is amongst the best of the industry. LNTH outperforms 88.56% of its industry peers.
Looking at the Gross Margin, with a value of 63.31%, LNTH is in the better half of the industry, outperforming 65.67% of the companies in the same industry.
In the last couple of years the Gross Margin of LNTH has grown nicely.

ChartMill's Evaluation of Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:LNTH has achieved a 7 out of 10:

LNTH has an Altman-Z score of 4.81. This indicates that LNTH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LNTH (4.81) is better than 77.11% 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.
Looking at the Debt to FCF ratio, with a value of 2.17, LNTH belongs to the top of the industry, outperforming 90.55% of the companies in the same industry.
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.
LNTH has a Current Ratio of 5.37. This indicates that LNTH is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 5.37, LNTH is in the better half of the industry, outperforming 69.65% of the companies in the same industry.
A Quick Ratio of 5.05 indicates that LNTH has no problem at all paying its short term obligations.
LNTH's Quick ratio of 5.05 is fine compared to the rest of the industry. LNTH outperforms 73.63% of its industry peers.

Exploring NASDAQ:LNTH's Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:LNTH was assigned a score of 8 for growth:

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

Our Decent Value screener lists more Decent Value 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.