Uncover the potential of LANTHEUS HOLDINGS INC (NASDAQ:LNTH), a growth stock that our stock screener found to be reasonably priced. NASDAQ:LNTH is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.
How We Gauge Growth for NASDAQ:LNTH
ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:LNTH was assigned a score of 8 for growth:
- The Earnings Per Share has grown by an nice 18.63% over the past year.
- 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 24.15%.
- 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.
- LNTH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.40% yearly.
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:
- 95.70% of the companies in the same industry are more expensive than LNTH, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 29.55. LNTH is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio, LNTH is valued cheaply inside the industry as 94.62% of the companies are valued more expensively.
- LNTH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.22, which is the current average of the S&P500 Index.
- Based on the Enterprise Value to EBITDA ratio, LNTH is valued cheaper than 93.01% of the companies 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 93.55% of the companies listed in the same industry.
- The excellent profitability rating of LNTH may justify a higher PE ratio.
Health Analysis for NASDAQ:LNTH
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:
- LNTH has an Altman-Z score of 6.44. This indicates that LNTH is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.44, LNTH belongs to the best of the industry, outperforming 82.26% of the companies in the same industry.
- The Debt to FCF ratio of LNTH is 1.49, which is an excellent value as it means it would take LNTH, only 1.49 years of fcf income to pay off all of its debts.
- LNTH has a Debt to FCF ratio of 1.49. This is amongst the best in the industry. LNTH outperforms 89.25% of its industry peers.
- A Debt/Equity ratio of 0.00 indicates that LNTH is not too dependend on debt financing.
- LNTH has a better Debt to Equity ratio (0.00) than 67.20% of its industry peers.
- LNTH does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Looking at the Profitability
ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:LNTH was assigned a score of 8 for profitability:
- With an excellent Return On Assets value of 20.86%, LNTH belongs to the best of the industry, outperforming 98.39% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 36.25%, LNTH belongs to the top of the industry, outperforming 98.39% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 29.79%, LNTH belongs to the best of the industry, outperforming 99.46% of the companies in the same industry.
- Looking at the Profit Margin, with a value of 28.57%, LNTH belongs to the top of the industry, outperforming 97.31% of the companies in the same industry.
- In the last couple of years the Profit Margin of LNTH has grown nicely.
- With an excellent Operating Margin value of 31.69%, LNTH belongs to the best of the industry, outperforming 98.39% of the companies in the same industry.
- LNTH's Operating Margin has improved in the last couple of years.
- LNTH has a Gross Margin of 64.78%. This is in the better half of the industry: LNTH outperforms 67.20% 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.
For an up to date full fundamental analysis you can check the fundamental report of LNTH
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.