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NASDAQ:LNTH is not too expensive for the growth it is showing.

By Mill Chart

Last update: Apr 23, 2024

Uncover the potential of LANTHEUS HOLDINGS INC (NASDAQ:LNTH), a growth stock that our stock screener found to be reasonably priced. NASDAQ:LNTH is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Assessing Growth for NASDAQ:LNTH

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:LNTH has achieved a 8 out of 10:

  • LNTH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.63%, which is quite impressive.
  • LNTH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.36% yearly.
  • Looking at the last year, LNTH shows a very strong growth in Revenue. The Revenue has grown by 38.64%.
  • LNTH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.43% yearly.
  • LNTH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.43% yearly.
  • The Revenue is expected to grow by 10.10% on average over the next years. This is quite good.

How do we evaluate the 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 8 out of 10:

  • With a Price/Earnings ratio of 10.12, the valuation of LNTH can be described as very reasonable.
  • LNTH's Price/Earnings ratio is rather cheap when compared to the industry. LNTH is cheaper than 95.90% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 24.95, LNTH is valued rather cheaply.
  • A Price/Forward Earnings ratio of 9.40 indicates a reasonable valuation of LNTH.
  • Based on the Price/Forward Earnings ratio, LNTH is valued cheaper than 96.92% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.40, LNTH is valued rather cheaply.
  • Based on the Enterprise Value to EBITDA ratio, LNTH is valued cheaply inside the industry as 96.41% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, LNTH is valued cheaper than 92.31% of the companies in the same industry.
  • The decent profitability rating of LNTH may justify a higher PE ratio.

Understanding NASDAQ:LNTH's Health Score

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 8 out of 10:

  • An Altman-Z score of 5.65 indicates that LNTH is not in any danger for bankruptcy at the moment.
  • LNTH's Altman-Z score of 5.65 is amongst the best of the industry. LNTH outperforms 81.54% of its industry peers.
  • The Debt to FCF ratio of LNTH is 2.64, which is a good value as it means it would take LNTH, 2.64 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of LNTH (2.64) is better than 88.72% of its industry peers.
  • A Current Ratio of 5.80 indicates that LNTH has no problem at all paying its short term obligations.
  • With a decent Current ratio value of 5.80, LNTH is doing good in the industry, outperforming 77.95% of the companies in the same industry.
  • A Quick Ratio of 5.45 indicates that LNTH has no problem at all paying its short term obligations.
  • The Quick ratio of LNTH (5.45) is better than 79.49% of its industry peers.

Looking at the Profitability

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:

  • With an excellent Return On Assets value of 19.79%, LNTH belongs to the best of the industry, outperforming 98.46% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 40.04%, LNTH belongs to the top of the industry, outperforming 99.49% of the companies in the same industry.
  • The Return On Invested Capital of LNTH (26.97%) is better than 99.49% of its industry peers.
  • LNTH has a Profit Margin of 25.20%. This is amongst the best in the industry. LNTH outperforms 96.92% of its industry peers.
  • LNTH's Profit Margin has improved in the last couple of years.
  • LNTH has a Operating Margin of 38.31%. This is amongst the best in the industry. LNTH outperforms 99.49% of its industry peers.
  • LNTH's Operating Margin has improved in the last couple of years.
  • LNTH's Gross Margin of 63.71% is fine compared to the rest of the industry. LNTH outperforms 63.08% of its industry peers.

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

Check the latest full fundamental report of LNTH for a complete fundamental analysis.

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.

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