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

Last update: Aug 12, 2024

Our stock screening tool has pinpointed LANTHEUS HOLDINGS INC (NASDAQ:LNTH) as a growth stock that isn't overvalued. NASDAQ:LNTH is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Assessing 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:

LNTH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.95%, which is quite impressive.
The Earnings Per Share has been growing by 45.36% on average over the past years. This is a very strong growth
The Revenue has grown by 27.82% in the past year. This is a very strong growth!
The Revenue has been growing by 30.43% on average over the past years. This is a very strong growth!
The Earnings Per Share is expected to grow by 14.82% on average over the next years. This is quite good.
LNTH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.40% yearly.

Valuation Analysis for NASDAQ:LNTH

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:LNTH, the assigned 8 reflects its valuation:

Based on the Price/Earnings ratio, LNTH is valued cheaper than 92.67% of the companies in the same industry.
LNTH is valuated rather cheaply when we compare the Price/Earnings ratio to 28.72, which is the current average of the S&P500 Index.
LNTH's Price/Forward Earnings ratio is rather cheap when compared to the industry. LNTH is cheaper than 92.15% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.36, LNTH is valued a bit cheaper.
90.05% of the companies in the same industry are more expensive than LNTH, based on the Enterprise Value to EBITDA ratio.
LNTH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LNTH is cheaper than 90.58% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent 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 12.13% in the coming years.

How do we evaluate the Health 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 8 for health:

An Altman-Z score of 6.78 indicates that LNTH is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.78, LNTH belongs to the best of the industry, outperforming 83.77% of the companies in the same industry.
LNTH has a debt to FCF ratio of 1.75. This is a very positive value and a sign of high solvency as it would only need 1.75 years to pay back of all of its debts.
LNTH has a better Debt to FCF ratio (1.75) than 89.01% 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 4.68. This indicates that LNTH is financially healthy and has no problem in meeting its short term obligations.
LNTH's Current ratio of 4.68 is fine compared to the rest of the industry. LNTH outperforms 67.54% of its industry peers.
A Quick Ratio of 4.41 indicates that LNTH has no problem at all paying its short term obligations.
With a decent Quick ratio value of 4.41, LNTH is doing good in the industry, outperforming 71.20% of the companies in the same industry.

Exploring NASDAQ:LNTH's 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 8 is noteworthy for profitability:

With an excellent Return On Assets value of 22.09%, LNTH belongs to the best of the industry, outperforming 98.95% of the companies in the same industry.
LNTH has a Return On Equity of 41.74%. This is amongst the best in the industry. LNTH outperforms 99.48% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.48%, LNTH belongs to the top of the industry, outperforming 98.95% of the companies in the same industry.
The Profit Margin of LNTH (29.80%) is better than 97.91% of its industry peers.
In the last couple of years the Profit Margin of LNTH has grown nicely.
The Operating Margin of LNTH (31.50%) is better than 98.43% of its industry peers.
LNTH's Operating Margin has improved in the last couple of years.
LNTH's Gross Margin of 64.50% is fine compared to the rest of the industry. LNTH outperforms 65.97% of its industry peers.
In the last couple of years the Gross Margin of LNTH has grown nicely.

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

For an up to date full fundamental analysis you can check the fundamental report of LNTH

Disclaimer

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.