Livent Corporation (LTHM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LTHM - US53814L1089 - Common Stock
16.51 USD
-1.54 (-8.53%)
16.3 USD
-0.21 (-1.27%)
LTHM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. LTHM gets an excellent profitability rating and is at the same time showing great financial health properties. LTHM is growing strongly while it also seems undervalued. This is an interesting combination These ratings could make LTHM a good candidate for value and growth and quality investing.
1. Profitability
1.1 Basic Checks
- LTHM had positive earnings in the past year.
- LTHM had a positive operating cash flow in the past year.
1.2 Ratios
- With an excellent Return On Assets value of 15.89%, LTHM belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
- LTHM has a Return On Equity of 21.55%. This is amongst the best in the industry. LTHM outperforms 86.90% of its industry peers.
- LTHM has a Return On Invested Capital of 16.86%. This is amongst the best in the industry. LTHM outperforms 94.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.89% | ||
| ROE | 21.55% | ||
| ROIC | 16.86% |
ROA(3y)3.83%
ROA(5y)7.29%
ROE(3y)5.38%
ROE(5y)10.24%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- LTHM's Profit Margin of 40.77% is amongst the best of the industry. LTHM outperforms 98.81% of its industry peers.
- In the last couple of years the Profit Margin of LTHM has grown nicely.
- With an excellent Operating Margin value of 51.57%, LTHM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- LTHM's Operating Margin has improved in the last couple of years.
- LTHM's Gross Margin of 58.78% is amongst the best of the industry. LTHM outperforms 94.05% of its industry peers.
- LTHM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 51.57% | ||
| PM (TTM) | 40.77% | ||
| GM | 58.78% |
OM growth 3Y31.56%
OM growth 5Y5.62%
PM growth 3Y37.55%
PM growth 5Y22.59%
GM growth 3Y18.28%
GM growth 5Y2.71%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LTHM is creating value.
- The number of shares outstanding for LTHM has been increased compared to 1 year ago.
- The debt/assets ratio for LTHM has been reduced compared to a year ago.
2.2 Solvency
- LTHM has an Altman-Z score of 4.47. This indicates that LTHM is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 4.47, LTHM belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
- The Debt to FCF ratio of LTHM is 6.03, which is on the high side as it means it would take LTHM, 6.03 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of LTHM (6.03) is better than 64.29% of its industry peers.
- A Debt/Equity ratio of 0.14 indicates that LTHM is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.14, LTHM is in the better half of the industry, outperforming 79.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 4.47 |
ROIC/WACC1.91
WACC8.85%
2.3 Liquidity
- A Current Ratio of 3.46 indicates that LTHM has no problem at all paying its short term obligations.
- The Current ratio of LTHM (3.46) is better than 79.76% of its industry peers.
- LTHM has a Quick Ratio of 1.99. This is a normal value and indicates that LTHM is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of LTHM (1.99) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.46 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 82.24% over the past year.
- Measured over the past years, LTHM shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.22% on average per year.
- LTHM shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.38%.
- Measured over the past years, LTHM shows a quite strong growth in Revenue. The Revenue has been growing by 18.54% on average per year.
EPS 1Y (TTM)82.24%
EPS 3Y50.23%
EPS 5Y36.22%
EPS Q2Q%7.32%
Revenue 1Y (TTM)28.38%
Revenue growth 3Y27.93%
Revenue growth 5Y18.54%
Sales Q2Q%-8.72%
3.2 Future
- Based on estimates for the next years, LTHM will show a very strong growth in Earnings Per Share. The EPS will grow by 30.99% on average per year.
- Based on estimates for the next years, LTHM will show a quite strong growth in Revenue. The Revenue will grow by 19.07% on average per year.
EPS Next Y41.69%
EPS Next 2Y14.68%
EPS Next 3Y17.85%
EPS Next 5Y30.99%
Revenue Next Year10.53%
Revenue Next 2Y11%
Revenue Next 3Y16.09%
Revenue Next 5Y19.07%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 8.47 indicates a reasonable valuation of LTHM.
- Based on the Price/Earnings ratio, LTHM is valued cheaper than 83.33% of the companies in the same industry.
- LTHM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 9.03, which indicates a very decent valuation of LTHM.
- LTHM's Price/Forward Earnings ratio is rather cheap when compared to the industry. LTHM is cheaper than 86.90% of the companies in the same industry.
- LTHM is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 9.03 |
4.2 Price Multiples
- LTHM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LTHM is cheaper than 80.95% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LTHM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 73.71 | ||
| EV/EBITDA | 6.15 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- LTHM has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as LTHM's earnings are expected to grow with 17.85% in the coming years.
PEG (NY)0.2
PEG (5Y)0.23
EPS Next 2Y14.68%
EPS Next 3Y17.85%
5. Dividend
5.1 Amount
- No dividends for LTHM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Livent Corporation / LTHM FAQ
What is the fundamental rating for LTHM stock?
ChartMill assigns a fundamental rating of 7 / 10 to LTHM.
Can you provide the valuation status for Livent Corporation?
ChartMill assigns a valuation rating of 8 / 10 to Livent Corporation (LTHM). This can be considered as Undervalued.
What is the profitability of LTHM stock?
Livent Corporation (LTHM) has a profitability rating of 8 / 10.
Can you provide the financial health for LTHM stock?
The financial health rating of Livent Corporation (LTHM) is 7 / 10.