For those who appreciate value investing, NASDAQ:LNTH is a compelling option with its solid fundamentals.

Last update: Jan 15, 2024

LANTHEUS HOLDINGS INC (NASDAQ:LNTH) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NASDAQ:LNTH showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Valuation Examination 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:

LNTH is valuated reasonably with a Price/Earnings ratio of 9.61.
Compared to the rest of the industry, the Price/Earnings ratio of LNTH indicates a rather cheap valuation: LNTH is cheaper than 98.49% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.82, LNTH is valued rather cheaply.
A Price/Forward Earnings ratio of 8.99 indicates a reasonable valuation of LNTH.
LNTH's Price/Forward Earnings ratio is rather cheap when compared to the industry. LNTH is cheaper than 98.49% of the companies in the same industry.
LNTH is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.77, which is the current average of the S&P500 Index.
LNTH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LNTH is cheaper than 86.93% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LNTH is valued cheaply inside the industry as 96.48% 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.
LNTH has a very decent profitability rating, which 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.

Understanding NASDAQ:LNTH's Profitability

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:

LNTH has a better Return On Assets (6.84%) than 87.94% 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 91.46% of the companies in the same industry.
LNTH has a Return On Invested Capital of 11.01%. This is amongst the best in the industry. LNTH outperforms 92.46% of its industry peers.
LNTH's Profit Margin of 8.63% is amongst the best of the industry. LNTH outperforms 83.92% of its industry peers.
LNTH has a Operating Margin of 15.55%. This is amongst the best in the industry. LNTH outperforms 88.44% of its industry peers.
LNTH has a Gross Margin of 63.31%. This is in the better half of the industry: LNTH outperforms 65.83% of its industry peers.
LNTH's Gross Margin has improved in the last couple of years.

Health Assessment of NASDAQ:LNTH

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:LNTH has earned a 7 out of 10:

An Altman-Z score of 4.64 indicates that LNTH is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.64, LNTH is doing good in the industry, outperforming 76.38% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 2.17, LNTH belongs to the best of the industry, outperforming 90.45% 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.
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.
With a decent Current ratio value of 5.37, LNTH is doing good in the industry, outperforming 68.84% 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.
The Quick ratio of LNTH (5.05) is better than 72.86% of its industry peers.

Assessing Growth Metrics for NASDAQ:LNTH

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:

The Earnings Per Share has grown by an impressive 88.71% over the past year.
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!
LNTH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.06% yearly.
LNTH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.38% yearly.
The Revenue is expected to grow by 17.46% 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.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.