NASDAQ:LNTH is showing good growth, while it is not too expensive.

Last update: Jan 26, 2024

Our stock screener has singled out LANTHEUS HOLDINGS INC (NASDAQ:LNTH) as an attractive growth opportunity. NASDAQ:LNTH is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Assessing Growth for 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.
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%.
The Revenue has been growing by 23.06% on average over the past years. This is a very strong growth!
The Earnings Per Share is expected to grow by 18.38% on average over the next years. This is quite good.
The Revenue is expected to grow by 17.46% on average over the next years. This is quite good.

A Closer Look at Valuation 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 9 out of 10:

Based on the Price/Earnings ratio of 8.98, the valuation of LNTH can be described as reasonable.
LNTH's Price/Earnings ratio is rather cheap when compared to the industry. LNTH is cheaper than 98.48% of the companies in the same industry.
LNTH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.04.
Based on the Price/Forward Earnings ratio of 8.40, the valuation of LNTH can be described as reasonable.
98.99% 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 (20.95), we can say LNTH is valued rather cheaply.
LNTH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LNTH is cheaper than 88.38% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LNTH is valued cheaply inside the industry as 96.46% of the companies are valued more expensively.
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.

Health Analysis for NASDAQ:LNTH

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:LNTH, the assigned 7 reflects its health status:

An Altman-Z score of 4.46 indicates that LNTH is not in any danger for bankruptcy at the moment.
The Altman-Z score of LNTH (4.46) is better than 75.76% 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 has a Debt to FCF ratio of 2.17. This is amongst the best in the industry. LNTH outperforms 90.40% 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.
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.
LNTH has a Current ratio of 5.37. This is in the better half of the industry: LNTH outperforms 68.69% 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 73.23% of its industry peers.

Profitability Analysis for NASDAQ:LNTH

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's Return On Assets of 6.84% is amongst the best of the industry. LNTH outperforms 87.88% of its industry peers.
LNTH's Return On Equity of 14.90% is amongst the best of the industry. LNTH outperforms 91.41% of its industry peers.
The Return On Invested Capital of LNTH (11.01%) is better than 92.42% of its industry peers.
Looking at the Profit Margin, with a value of 8.63%, LNTH belongs to the top of the industry, outperforming 83.84% of the companies in the same industry.
LNTH's Operating Margin of 15.55% is amongst the best of the industry. LNTH outperforms 88.38% 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 65.66% of the companies in the same industry.
LNTH's Gross Margin has improved in the last couple of years.

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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.