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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. An interesting combination arises when we look at growth and value: LTHM is growing strongly while it also seems undervalued. These ratings would make LTHM suitable for value and growth and quality investing!
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
- The Return On Assets of LTHM (15.89%) is better than 96.43% of its industry peers.
- 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.
- Looking at the Return On Invested Capital, with a value of 16.86%, LTHM belongs to the top of the industry, outperforming 94.05% of the companies in the same industry.
| 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.
- LTHM's Operating Margin of 51.57% is amongst the best of the industry. LTHM outperforms 100.00% of its industry peers.
- LTHM's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 58.78%, LTHM belongs to the top of the industry, outperforming 94.05% of the companies in the same industry.
- 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.
- Compared to 1 year ago, LTHM has more shares outstanding
- The debt/assets ratio for LTHM has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.47 indicates that LTHM is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.47, LTHM belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
- LTHM has a debt to FCF ratio of 6.03. This is a slightly negative value and a sign of low solvency as LTHM would need 6.03 years to pay back of all of its debts.
- LTHM has a better Debt to FCF ratio (6.03) than 64.29% of its industry peers.
- A Debt/Equity ratio of 0.14 indicates that LTHM is not too dependend on debt financing.
- LTHM has a better Debt to Equity ratio (0.14) 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
- LTHM has a Current Ratio of 3.46. This indicates that LTHM is financially healthy and has no problem in meeting its short term obligations.
- LTHM has a Current ratio of 3.46. This is in the better half 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.
- With a decent Quick ratio value of 1.99, LTHM is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| 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.
- 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
- The Earnings Per Share is expected to grow by 30.99% on average over the next years. This is a very strong growth
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- LTHM is valuated reasonably with a Price/Earnings ratio of 8.47.
- Based on the Price/Earnings ratio, LTHM is valued cheaper than 83.33% of the companies in the same industry.
- LTHM is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- LTHM is valuated reasonably with a Price/Forward Earnings ratio of 9.03.
- 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, LTHM is valued rather cheaply.
| 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.
- LTHM's Price/Free Cash Flow ratio is in line with the industry average.
| 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.
- The decent profitability rating of LTHM 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.