NASDAQ:LNTH, an undervalued stock with good fundamentals.

Last update: Sep 4, 2024

Discover LANTHEUS HOLDINGS INC (NASDAQ:LNTH), an undervalued stock highlighted by our stock screener. NASDAQ:LNTH showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Analyzing Valuation Metrics

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 91.53% of the companies in the same industry.
LNTH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 30.14.
LNTH's Price/Forward Earnings ratio is rather cheap when compared to the industry. LNTH is cheaper than 91.53% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.56. LNTH is valued slightly cheaper when compared to this.
Based on the Enterprise Value to EBITDA ratio, LNTH is valued cheaper than 88.36% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LNTH is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
LNTH has an outstanding profitability rating, which may justify a higher PE ratio.

What does the Profitability looks like for NASDAQ:LNTH

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:

LNTH has a Return On Assets of 22.09%. This is amongst the best in the industry. LNTH outperforms 99.47% of its industry peers.
LNTH's Return On Equity of 41.74% is amongst the best of the industry. LNTH outperforms 99.47% of its industry peers.
LNTH has a better Return On Invested Capital (21.48%) than 98.94% of its industry peers.
LNTH has a Profit Margin of 29.80%. This is amongst the best in the industry. LNTH outperforms 98.41% of its industry peers.
In the last couple of years the Profit Margin of LNTH has grown nicely.
LNTH has a Operating Margin of 31.50%. This is amongst the best in the industry. LNTH outperforms 98.41% of its industry peers.
LNTH's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 64.50%, LNTH is doing good in the industry, outperforming 65.08% of the companies in the same industry.
In the last couple of years the Gross Margin of LNTH has grown nicely.

Understanding NASDAQ:LNTH's Health Score

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:LNTH has achieved a 8 out of 10:

An Altman-Z score of 7.15 indicates that LNTH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.15, LNTH belongs to the top of the industry, outperforming 84.66% 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's Debt to FCF ratio of 1.75 is amongst the best of the industry. LNTH outperforms 89.42% 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.
A Current Ratio of 4.68 indicates that LNTH has no problem at all paying its short term obligations.
LNTH's Current ratio of 4.68 is fine compared to the rest of the industry. LNTH outperforms 69.31% of its industry peers.
A Quick Ratio of 4.41 indicates that LNTH has no problem at all paying its short term obligations.
LNTH has a better Quick ratio (4.41) than 70.90% of its industry peers.

Growth Assessment of 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:

The Earnings Per Share has grown by an impressive 24.95% 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 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.
Based on estimates for the next years, LNTH will show a quite strong growth in Revenue. The Revenue will grow by 15.40% on average per year.

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Our latest full fundamental report of LNTH contains the most current fundamental analsysis.

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.