Livent Corporation (LTHM) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:LTHM • US53814L1089
16.51 USD
-1.54 (-8.53%)
At close: Jan 3, 2024
16.3 USD
-0.21 (-1.27%)
After Hours: 1/3/2024, 8:08:28 PM
We assign a fundamental rating of 7 out of 10 to LTHM. LTHM was compared to 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 has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings would make LTHM suitable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
- LTHM had positive earnings in the past year.
- In the past year LTHM had a positive cash flow from operations.
1.2 Ratios
- Looking at the Return On Assets, with a value of 15.89%, LTHM belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
- With an excellent Return On Equity value of 21.55%, LTHM belongs to the best of the industry, outperforming 86.90% of the companies in the same industry.
- LTHM's Return On Invested Capital of 16.86% is amongst the best of 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 has a Profit Margin of 40.77%. This is amongst the best in the industry. LTHM outperforms 98.81% of its industry peers.
- In the last couple of years the Profit Margin of LTHM has grown nicely.
- The Operating Margin of LTHM (51.57%) is better than 100.00% of its industry peers.
- LTHM's Operating Margin has improved in the last couple of years.
- LTHM has a better Gross Margin (58.78%) than 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
- LTHM has a Altman-Z score of 4.47. This is amongst the best in the industry. LTHM outperforms 91.67% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 6.03, LTHM is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
- A Debt/Equity ratio of 0.14 indicates that LTHM is not too dependend on debt financing.
- The Debt to Equity ratio of LTHM (0.14) is better than 79.76% of its industry peers.
| 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.
- Looking at the Current ratio, with a value of 3.46, LTHM is in the better half of the industry, outperforming 79.76% of the companies in the same industry.
- 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
- LTHM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 82.24%, which is quite impressive.
- LTHM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.22% yearly.
- Looking at the last year, LTHM shows a very strong growth in Revenue. The Revenue has grown by 28.38%.
- The Revenue has been growing by 18.54% on average over the past years. This is quite good.
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
- LTHM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.99% yearly.
- The Revenue is expected to grow by 19.07% on average over the next years. This is quite good.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 8.47, the valuation of LTHM can be described as reasonable.
- 83.33% of the companies in the same industry are more expensive than LTHM, based on the Price/Earnings ratio.
- LTHM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.41.
- LTHM is valuated reasonably with a Price/Forward Earnings ratio of 9.03.
- Based on the Price/Forward Earnings ratio, LTHM is valued cheaper than 86.90% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of LTHM to the average of the S&P500 Index (25.64), we can say LTHM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 9.03 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LTHM is valued 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
- LTHM's 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
- LTHM does not give a dividend.
| 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.