For those who appreciate growth without the sticker shock, NASDAQ:LNTH is worth considering.

Last update: Sep 24, 2024

Take a closer look at LANTHEUS HOLDINGS INC (NASDAQ:LNTH), an affordable growth stock uncovered by our stock screener. NASDAQ:LNTH boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

How We Gauge Growth for NASDAQ:LNTH

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:LNTH scores 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!
LNTH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.82% yearly.
The Revenue is expected to grow by 15.40% on average over the next years. This is quite good.

How We Gauge Valuation 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 6 reflects its valuation:

LNTH's Price/Earnings ratio is rather cheap when compared to the industry. LNTH is cheaper than 91.44% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.69, LNTH is valued a bit cheaper.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LNTH indicates a rather cheap valuation: LNTH is cheaper than 90.37% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.27. LNTH is valued slightly cheaper when compared to this.
Based on the Enterprise Value to EBITDA ratio, LNTH is valued cheaper than 87.17% of the companies in the same industry.
LNTH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LNTH is cheaper than 88.24% of the companies in the same industry.
LNTH has an outstanding profitability rating, which may justify a higher PE ratio.

Understanding NASDAQ:LNTH's Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:LNTH has received a 8 out of 10:

LNTH has an Altman-Z score of 7.43. This indicates that LNTH is financially healthy and has little risk of bankruptcy at the moment.
LNTH has a better Altman-Z score (7.43) than 86.10% of its industry peers.
The Debt to FCF ratio of LNTH is 1.75, which is an excellent value as it means it would take LNTH, only 1.75 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.75, LNTH belongs to the best of the industry, outperforming 89.30% of the companies in the same industry.
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.
Looking at the Current ratio, with a value of 4.68, LNTH is in the better half of the industry, outperforming 70.05% 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.
Looking at the Quick ratio, with a value of 4.41, LNTH is in the better half of the industry, outperforming 71.66% of the companies in the same industry.

Assessing Profitability for NASDAQ:LNTH

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:LNTH has earned a 8 out of 10:

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 better Return On Equity (41.74%) than 99.47% of its industry peers.
With an excellent Return On Invested Capital value of 21.48%, LNTH belongs to the best of the industry, outperforming 98.93% of the companies in the same industry.
The Profit Margin of LNTH (29.80%) is better than 98.40% of its industry peers.
LNTH's Profit Margin has improved in the last couple of years.
LNTH has a better Operating Margin (31.50%) than 98.40% 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 65.24% 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

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.