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

Last update: Feb 5, 2024

Our stock screening tool has pinpointed LANTHEUS HOLDINGS INC (NASDAQ:LNTH) as an undervalued stock. NASDAQ:LNTH maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Unpacking NASDAQ:LNTH's Valuation Rating

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:LNTH has earned a 9 for valuation:

LNTH is valuated reasonably with a Price/Earnings ratio of 9.23.
Compared to the rest of the industry, the Price/Earnings ratio of LNTH indicates a rather cheap valuation: LNTH is cheaper than 97.98% of the companies listed in the same industry.
LNTH is valuated cheaply when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.49, the valuation of LNTH can be described as very reasonable.
LNTH's Price/Forward Earnings ratio is rather cheap when compared to the industry. LNTH is cheaper than 98.99% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.44, LNTH is valued rather cheaply.
88.38% of the companies in the same industry are more expensive than LNTH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LNTH is valued cheaper than 96.46% 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.
The decent profitability rating of LNTH may justify a higher PE ratio.
A more expensive valuation may be justified as LNTH's earnings are expected to grow with 15.08% in the coming years.

Evaluating Profitability: NASDAQ:LNTH

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 has a better Return On Assets (6.84%) than 87.37% of its industry peers.
LNTH has a Return On Equity of 14.90%. This is amongst the best in the industry. LNTH outperforms 90.91% 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 92.42% of the companies in the same industry.
LNTH has a Profit Margin of 8.63%. This is amongst the best in the industry. LNTH outperforms 83.84% of its industry peers.
Looking at the Operating Margin, with a value of 15.55%, LNTH belongs to the top of the industry, outperforming 88.38% of the companies in the same industry.
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.

Understanding NASDAQ:LNTH's Health Score

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:LNTH has received a 7 out of 10:

LNTH has an Altman-Z score of 4.53. This indicates that LNTH is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.53, LNTH is doing good in the industry, outperforming 76.26% 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.
LNTH's Debt to FCF ratio of 2.17 is amongst the best of 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.
The Current ratio of LNTH (5.37) is better than 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 has a better Quick ratio (5.05) than 73.23% of its industry peers.

Deciphering NASDAQ:LNTH's Growth Rating

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:LNTH, the assigned 8 reflects its growth potential:

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!
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 17.45% 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

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.