For those who appreciate growth without the sticker shock, NASDAQ:LNTH is worth considering.

Last update: Jan 5, 2024

Here's LANTHEUS HOLDINGS INC (NASDAQ:LNTH) for you, a growth stock our stock screener believes is undervalued. NASDAQ:LNTH is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Evaluating Growth: NASDAQ:LNTH

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:

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.
Measured over the past years, LNTH shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.91% on average per year.
The Revenue has grown by 50.42% in the past year. This is a very strong growth!
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.
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.

Analyzing Valuation Metrics

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:

The Price/Earnings ratio is 11.00, which indicates a very decent valuation of LNTH.
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 25.53.
With a Price/Forward Earnings ratio of 10.28, the valuation of LNTH can be described as very reasonable.
Based on the Price/Forward Earnings ratio, LNTH is valued cheaply inside the industry as 98.51% of the companies are valued more expensively.
LNTH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.53.
Based on the Enterprise Value to EBITDA ratio, LNTH is valued cheaper than 83.08% of the companies in the same industry.
96.02% of the companies in the same industry are more expensive than LNTH, based on the Price/Free Cash Flow ratio.
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.

ChartMill's Evaluation of 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 5.05 indicates that LNTH is not in any danger for bankruptcy at the moment.
LNTH's Altman-Z score of 5.05 is fine compared to the rest of the industry. LNTH outperforms 78.61% of its industry peers.
LNTH has a debt to FCF ratio of 2.17. This is a good value and a sign of high solvency as LNTH would need 2.17 years to pay back of 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.
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 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 has a Quick ratio of 5.05. This is in the better half of the industry: LNTH outperforms 73.63% of its industry peers.

Understanding NASDAQ:LNTH's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:LNTH scores a 7 out of 10:

LNTH's Return On Assets of 6.84% is amongst the best of the industry. LNTH outperforms 88.06% of its industry peers.
The Return On Equity of LNTH (14.90%) is better than 91.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.01%, LNTH belongs to the top of the industry, outperforming 92.54% of the companies in the same industry.
The Profit Margin of LNTH (8.63%) is better 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.
With a decent Gross Margin value of 63.31%, LNTH is doing good in the industry, outperforming 65.67% of the companies in the same industry.
LNTH's Gross Margin has improved in the last couple of years.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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.