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%)
Taking everything into account, LTHM scores 7 out of 10 in our fundamental rating. LTHM was compared to 82 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 evaluated to be cheap and growing strongly. This does not happen too often! 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.
- In the past year LTHM had a positive cash flow from operations.
1.2 Ratios
- The Return On Assets of LTHM (15.89%) is better than 96.43% of its industry peers.
- 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 better Return On Invested Capital (16.86%) 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
- With an excellent Profit Margin value of 40.77%, LTHM belongs to the best of the industry, outperforming 98.81% of the companies in the same industry.
- In the last couple of years the Profit Margin of LTHM has grown nicely.
- LTHM has a better Operating Margin (51.57%) than 100.00% of its industry peers.
- In the last couple of years the Operating Margin of LTHM has grown nicely.
- With an excellent Gross Margin value of 58.78%, LTHM belongs to the best of the industry, outperforming 94.05% of the companies in the same industry.
- 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LTHM is creating value.
- LTHM has more shares outstanding than it did 1 year ago.
- Compared to 1 year ago, LTHM has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.47 indicates that LTHM is not in any danger for bankruptcy at the moment.
- LTHM's Altman-Z score of 4.47 is amongst the best of 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.
- LTHM has a better Debt to FCF ratio (6.03) than 64.29% of its industry peers.
- LTHM has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
- LTHM's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. LTHM outperforms 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
- The Earnings Per Share has grown by an impressive 82.24% over the past year.
- The Earnings Per Share has been growing by 36.22% on average over the past years. This is a very strong growth
- LTHM shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.38%.
- LTHM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.54% yearly.
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
- 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
- A Price/Earnings ratio of 8.47 indicates a reasonable valuation of LTHM.
- 83.33% of the companies in the same industry are more expensive than LTHM, based on the Price/Earnings ratio.
- LTHM is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 9.03, the valuation of LTHM can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, LTHM is valued cheaper than 86.90% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. LTHM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 9.03 |
4.2 Price Multiples
- 80.95% of the companies in the same industry are more expensive than LTHM, based on the Enterprise Value to EBITDA ratio.
- 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.
- 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.