Taking everything into account, LTHM scores 7 out of 10 in our fundamental rating. LTHM was compared to 83 industry peers in the Chemicals industry. Both the health and profitability get an excellent rating, making LTHM a very profitable company, without any liquidiy or solvency issues. 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.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year LTHM was profitable.
LTHM had a positive operating cash flow in the past year.

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.
Looking at the Return On Equity, with a value of 21.55%, LTHM belongs to the top of the industry, outperforming 86.90% of the companies in the same industry.
The Return On Invested Capital of LTHM (16.86%) is better than 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

The Profit Margin of LTHM (40.77%) is better than 98.81% of its industry peers.
LTHM's Profit Margin has improved in the last couple of years.
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.
In the last couple of years the Operating Margin of LTHM has grown nicely.
LTHM has a better Gross Margin (58.78%) than 94.05% of its industry peers.
In the last couple of years the Gross Margin of LTHM has grown nicely.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

LTHM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for LTHM has been increased compared to 1 year ago.
LTHM has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 4.47 indicates that LTHM is not in any danger for bankruptcy at the moment.
The Altman-Z score of LTHM (4.47) is better than 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.
LTHM has a Debt to FCF ratio of 6.03. This is in the better half of the industry: LTHM outperforms 64.29% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that LTHM is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.14, LTHM is doing good in 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.
LTHM's Current ratio of 3.46 is fine compared to the rest of the industry. LTHM outperforms 79.76% of its industry peers.
A Quick Ratio of 1.99 indicates that LTHM should not have too much problems paying its short term obligations.
LTHM has a Quick ratio of 1.99. This is in the better half of the industry: LTHM outperforms 75.00% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.46
Quick Ratio	1.99

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WACC

Debt/Equity

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Altman-Z score

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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.
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.
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

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.
LTHM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.07% yearly.

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 8.47, the valuation of LTHM can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of LTHM indicates a rather cheap valuation: LTHM is cheaper than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.39, LTHM is valued rather cheaply.
A Price/Forward Earnings ratio of 9.03 indicates a reasonable valuation of LTHM.
86.90% of the companies in the same industry are more expensive than LTHM, based on the Price/Forward Earnings ratio.
LTHM is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.72, 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

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LTHM indicates a rather cheap valuation: LTHM is cheaper than 80.95% of the companies listed 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.
LTHM's earnings are expected to grow with 17.85% in the coming years. This may justify a more expensive valuation.