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

Last update: Oct 15, 2024

Consider LANTHEUS HOLDINGS INC (NASDAQ:LNTH) as an affordable growth stock, identified by our stock screening tool. NASDAQ:LNTH is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Growth Assessment of 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.
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.
Looking at the last year, LNTH shows a very strong growth in Revenue. The Revenue has grown by 27.82%.
Measured over the past years, LNTH shows a very strong growth in Revenue. The Revenue has been growing by 30.43% on average per year.
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.
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.

Assessing Valuation Metrics for NASDAQ:LNTH

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:LNTH was assigned a score of 6 for valuation:

LNTH's Price/Earnings ratio is rather cheap when compared to the industry. LNTH is cheaper than 90.32% 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 31.73.
LNTH's Price/Forward Earnings ratio is rather cheap when compared to the industry. LNTH is cheaper than 90.86% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.71. LNTH is valued slightly cheaper when compared to this.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LNTH indicates a rather cheap valuation: LNTH is cheaper than 87.63% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LNTH indicates a rather cheap valuation: LNTH is cheaper than 88.71% of the companies listed in the same industry.
LNTH has an outstanding profitability rating, which may justify a higher PE ratio.

Health Insights: 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:

LNTH has an Altman-Z score of 7.40. This indicates that LNTH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LNTH (7.40) is better than 86.02% 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.
The Debt to FCF ratio of LNTH (1.75) is better than 89.25% 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 has a Current ratio of 4.68. This is in the better half of the industry: LNTH outperforms 70.43% of its industry peers.
LNTH has a Quick Ratio of 4.41. This indicates that LNTH is financially healthy and has no problem in meeting 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 72.04% of the companies in the same industry.

How do we evaluate the Profitability for NASDAQ:LNTH?

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:LNTH scores a 8 out of 10:

LNTH has a Return On Assets of 22.09%. This is amongst the best in the industry. LNTH outperforms 99.46% of its industry peers.
With an excellent Return On Equity value of 41.74%, LNTH belongs to the best of the industry, outperforming 99.46% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 21.48%, LNTH belongs to the top of the industry, outperforming 98.92% of the companies in the same industry.
The Profit Margin of LNTH (29.80%) is better than 98.39% of its industry peers.
In the last couple of years the Profit Margin of LNTH has grown nicely.
LNTH has a better Operating Margin (31.50%) than 98.39% of its industry peers.
In the last couple of years the Operating Margin of LNTH has grown nicely.
The Gross Margin of LNTH (64.50%) is better than 65.59% of its industry peers.
In the last couple of years the Gross Margin of LNTH has grown nicely.

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

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.