While growth is established for NASDAQ:LNTH, the stock's valuation remains reasonable.

Last update: Jun 5, 2024

LANTHEUS HOLDINGS INC (NASDAQ:LNTH) was identified as an affordable growth stock by our stock screener. NASDAQ:LNTH is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

How do we evaluate the Growth for NASDAQ:LNTH?

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:

The Earnings Per Share has grown by an impressive 36.65% 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 45.36% on average per year.
The Revenue has grown by 32.97% 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 30.43% yearly.
Based on estimates for the next years, LNTH will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.62% on average per year.
Based on estimates for the next years, LNTH will show a quite strong growth in Revenue. The Revenue will grow by 16.57% on average per year.

ChartMill's Evaluation of Valuation

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:

LNTH's Price/Earnings ratio is rather cheap when compared to the industry. LNTH is cheaper than 95.31% of the companies in the same industry.
When comparing the Price/Earnings ratio of LNTH to the average of the S&P500 Index (27.88), we can say LNTH is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.00, the valuation of LNTH can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LNTH indicates a rather cheap valuation: LNTH is cheaper than 94.79% of the companies listed in the same industry.
LNTH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 19.96, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, LNTH is valued cheaply inside the industry as 93.23% of the companies are valued more expensively.
LNTH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LNTH is cheaper than 86.46% 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.

Health Analysis for NASDAQ:LNTH

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:LNTH was assigned a score of 7 for health:

LNTH has an Altman-Z score of 6.23. This indicates that LNTH is financially healthy and has little risk of bankruptcy at the moment.
LNTH has a better Altman-Z score (6.23) than 79.69% of its industry peers.
LNTH has a debt to FCF ratio of 2.75. This is a good value and a sign of high solvency as LNTH would need 2.75 years to pay back of all of its debts.
The Debt to FCF ratio of LNTH (2.75) is better than 86.98% of its industry peers.
LNTH has a Current Ratio of 4.84. This indicates that LNTH is financially healthy and has no problem in meeting its short term obligations.
LNTH has a better Current ratio (4.84) than 67.71% of its industry peers.
A Quick Ratio of 4.55 indicates that LNTH has no problem at all paying its short term obligations.
LNTH has a better Quick ratio (4.55) than 70.83% of its industry peers.

Exploring NASDAQ:LNTH's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:LNTH has achieved a 7:

Looking at the Return On Assets, with a value of 25.15%, LNTH belongs to the top of the industry, outperforming 98.96% of the companies in the same industry.
LNTH has a Return On Equity of 48.71%. This is amongst the best in the industry. LNTH outperforms 99.48% of its industry peers.
The Return On Invested Capital of LNTH (23.65%) is better than 98.96% of its industry peers.
LNTH has a Profit Margin of 33.73%. This is amongst the best in the industry. LNTH outperforms 98.96% of its industry peers.
LNTH's Profit Margin has improved in the last couple of years.
The Operating Margin of LNTH (34.74%) is better than 98.96% of its industry peers.
LNTH's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 64.03%, LNTH is in the better half of the industry, outperforming 64.06% of the companies in the same industry.

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.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.