NASDAQ:LNTH stands out as a growth opportunity that won't break the bank.

Last update: Sep 3, 2024

Discover LANTHEUS HOLDINGS INC (NASDAQ:LNTH), an undervalued growth gem identified by our stock screener. NASDAQ:LNTH is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

What does the Growth looks like for NASDAQ:LNTH

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:LNTH has received a 8 out of 10:

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.
LNTH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.36% yearly.
LNTH shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.82%.
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 14.82% on average per year.
The Revenue is expected to grow by 15.40% on average over the next years. This is quite good.

ChartMill's Evaluation of Valuation

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 7 reflects its valuation:

LNTH's Price/Earnings ratio is rather cheap when compared to the industry. LNTH is cheaper than 92.06% of the companies in the same industry.
LNTH is valuated rather cheaply when we compare the Price/Earnings ratio to 30.73, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LNTH indicates a rather cheap valuation: LNTH is cheaper than 92.59% of the companies listed in the same industry.
LNTH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.86, 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 88.36% of the companies are valued more expensively.
88.89% of the companies in the same industry are more expensive than LNTH, based on the Price/Free Cash Flow ratio.
LNTH has an outstanding profitability rating, which may justify a higher PE ratio.

Analyzing Health Metrics

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:LNTH, the assigned 8 for health provides valuable insights:

LNTH has an Altman-Z score of 7.20. This indicates that LNTH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LNTH (7.20) is better than 84.66% of its industry peers.
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.
The Debt to FCF ratio of LNTH (1.75) is better than 89.42% of its industry peers.
Even though the debt/equity ratio score it not favorable for LNTH, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
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.
With a decent Current ratio value of 4.68, LNTH is doing good in the industry, outperforming 69.31% of the companies in the same industry.
A Quick Ratio of 4.41 indicates that LNTH has no problem at all paying its short term obligations.
The Quick ratio of LNTH (4.41) is better than 70.90% of its industry peers.

What does the Profitability looks like for NASDAQ:LNTH

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:LNTH, the assigned 8 is a significant indicator of profitability:

Looking at the Return On Assets, with a value of 22.09%, LNTH belongs to the top of the industry, outperforming 99.47% 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 99.47% of its industry peers.
LNTH's Return On Invested Capital of 21.48% is amongst the best of the industry. LNTH outperforms 98.94% of its industry peers.
LNTH has a better Profit Margin (29.80%) than 98.41% of its industry peers.
LNTH's Profit Margin has improved in the last couple of years.
LNTH has a Operating Margin of 31.50%. This is amongst the best in the industry. LNTH outperforms 98.41% of its industry peers.
In the last couple of years the Operating Margin of LNTH has grown nicely.
LNTH has a Gross Margin of 64.50%. This is in the better half of the industry: LNTH outperforms 65.08% of its industry peers.
LNTH's Gross Margin has improved in the last couple of years.

More Affordable Growth stocks can be found in our Affordable Growth 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.