Despite its growth, NASDAQ:LNTH remains within the realm of affordability.

Last update: Nov 6, 2024

LANTHEUS HOLDINGS INC (NASDAQ:LNTH) was identified as an affordable growth stock by our stock screener. NASDAQ:LNTH is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Assessing Growth Metrics 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:

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.
Looking at the last year, LNTH shows a very strong growth in Revenue. The Revenue has grown by 27.82%.
The Revenue has been growing by 30.43% on average over the past years. This is a very strong growth!
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.
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.

Understanding NASDAQ:LNTH's Valuation

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:LNTH boasts a 6 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of LNTH indicates a rather cheap valuation: LNTH is cheaper than 88.77% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LNTH to the average of the S&P500 Index (27.91), we can say LNTH is valued slightly cheaper.
89.84% of the companies in the same industry are more expensive than LNTH, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LNTH to the average of the S&P500 Index (23.57), we can say LNTH is valued slightly cheaper.
Based on the Enterprise Value to EBITDA ratio, LNTH is valued cheaper than 85.03% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LNTH is valued cheaper than 87.17% of the companies in the same industry.
LNTH has an outstanding profitability rating, which may justify a higher PE ratio.

How We Gauge 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:

LNTH has an Altman-Z score of 7.59. This indicates that LNTH is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.59, LNTH belongs to the best of the industry, outperforming 85.03% 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.
The Debt to FCF ratio of LNTH (1.75) is better than 88.77% 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.
LNTH has a Current ratio of 4.68. This is in the better half of the industry: LNTH outperforms 71.12% 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 73.26% of its industry peers.

A Closer Look at Profitability 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:

With an excellent Return On Assets value of 22.09%, LNTH belongs to the best 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.
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.
With an excellent Profit Margin value of 29.80%, LNTH belongs to the best of the industry, outperforming 98.40% of the companies in the same industry.
In the last couple of years the Profit Margin of LNTH has grown nicely.
LNTH's Operating Margin of 31.50% is amongst the best of the industry. LNTH outperforms 98.40% of its industry peers.
In the last couple of years the Operating Margin of LNTH has grown nicely.
LNTH has a better Gross Margin (64.50%) than 65.24% of its industry peers.
LNTH's Gross Margin has improved in the last couple of years.

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

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

Disclaimer

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.