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 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. LTHM is growing strongly while it also seems undervalued. This is an interesting combination 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.
In the past year LTHM had a positive cash flow from operations.
LTHM had positive earnings in 4 of the past 5 years.
Each year in the past 5 years LTHM had a positive operating cash flow.
1.2 Ratios
LTHM's Return On Assets of 15.89% is amongst the best of the industry. LTHM outperforms 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.
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
LTHM's Profit Margin of 40.77% is amongst the best of the industry. LTHM outperforms 98.81% of its industry peers.
LTHM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 51.57%, LTHM belongs to the top 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.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
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.
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's Debt to FCF ratio of 6.03 is fine compared to the rest of the industry. LTHM outperforms 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.
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.
With a decent Current ratio value of 3.46, LTHM is doing good in 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.
LTHM's Quick ratio of 1.99 is fine compared to the rest of the industry. LTHM outperforms 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.
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
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
A Price/Earnings ratio of 8.47 indicates a reasonable valuation of LTHM.
LTHM's Price/Earnings ratio is rather cheap when compared to the industry. LTHM is 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 26.84.
Based on the Price/Forward Earnings ratio of 9.03, the valuation of LTHM can be described as reasonable.
Based on the Price/Forward Earnings ratio, LTHM is valued cheaply inside the industry as 86.90% of the companies are valued more expensively.
LTHM is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.40, 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.
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
LTHM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LTHM has an outstanding 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.
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 |
16.51
-1.54 (-8.53%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners0.94%
Inst Owner Change0%
Ins Owners0.04%
Ins Owner Change0%
Market Cap2.97B
Revenue(TTM)920.10M
Net Income(TTM)375.10M
Analysts78.4
Price Target24.83 (50.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.12%
Min EPS beat(2)-6.14%
Max EPS beat(2)6.38%
EPS beat(4)3
Avg EPS beat(4)13.31%
Min EPS beat(4)-6.14%
Max EPS beat(4)49.43%
EPS beat(8)7
Avg EPS beat(8)17.45%
EPS beat(12)9
Avg EPS beat(12)-2.18%
EPS beat(16)9
Avg EPS beat(16)-58.9%
Revenue beat(2)0
Avg Revenue beat(2)-15.66%
Min Revenue beat(2)-22.75%
Max Revenue beat(2)-8.57%
Revenue beat(4)1
Avg Revenue beat(4)-8.8%
Min Revenue beat(4)-22.75%
Max Revenue beat(4)6.45%
Revenue beat(8)4
Avg Revenue beat(8)-3.59%
Revenue beat(12)7
Avg Revenue beat(12)-0.31%
Revenue beat(16)8
Avg Revenue beat(16)-2.88%
PT rev (1m)-6.33%
PT rev (3m)-22.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-29.68%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-31.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-13.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 9.03 | ||
| P/S | 3.23 | ||
| P/FCF | 73.71 | ||
| P/OCF | 7.65 | ||
| P/B | 1.71 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 6.15 |
EPS(TTM)1.95
EY11.81%
EPS(NY)1.83
Fwd EY11.07%
FCF(TTM)0.22
FCFY1.36%
OCF(TTM)2.16
OCFY13.07%
SpS5.11
BVpS9.67
TBVpS9.67
PEG (NY)0.2
PEG (5Y)0.23
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.89% | ||
| ROE | 21.55% | ||
| ROCE | 21.35% | ||
| ROIC | 16.86% | ||
| ROICexc | 17.76% | ||
| ROICexgc | 17.77% | ||
| OM | 51.57% | ||
| PM (TTM) | 40.77% | ||
| GM | 58.78% | ||
| FCFM | 4.38% |
ROA(3y)3.83%
ROA(5y)7.29%
ROE(3y)5.38%
ROE(5y)10.24%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y25.49%
ROICexgc growth 5Y-6.33%
ROICexc growth 3Y25.52%
ROICexc growth 5Y-6.24%
OM growth 3Y31.56%
OM growth 5Y5.62%
PM growth 3Y37.55%
PM growth 5Y22.59%
GM growth 3Y18.28%
GM growth 5Y2.71%
F-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 6.03 | ||
| Debt/EBITDA | 0.48 | ||
| Cap/Depr | 1167.79% | ||
| Cap/Sales | 37.82% | ||
| Interest Coverage | 41.26 | ||
| Cash Conversion | 77% | ||
| Profit Quality | 10.74% | ||
| Current Ratio | 3.46 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z | 4.47 |
F-Score7
WACC8.85%
ROIC/WACC1.91
Cap/Depr(3y)745.91%
Cap/Depr(5y)706.61%
Cap/Sales(3y)38.61%
Cap/Sales(5y)35.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)82.24%
EPS 3Y50.23%
EPS 5Y36.22%
EPS Q2Q%7.32%
EPS Next Y41.69%
EPS Next 2Y14.68%
EPS Next 3Y17.85%
EPS Next 5Y30.99%
Revenue 1Y (TTM)28.38%
Revenue growth 3Y27.93%
Revenue growth 5Y18.54%
Sales Q2Q%-8.72%
Revenue Next Year10.53%
Revenue Next 2Y11%
Revenue Next 3Y16.09%
Revenue Next 5Y19.07%
EBIT growth 1Y113.26%
EBIT growth 3Y68.31%
EBIT growth 5Y25.2%
EBIT Next Year53.07%
EBIT Next 3Y22.01%
EBIT Next 5Y31.97%
FCF growth 1Y207.18%
FCF growth 3YN/A
FCF growth 5Y65.81%
OCF growth 1Y747.82%
OCF growth 3Y98.54%
OCF growth 5Y50.8%
Livent Corporation / LTHM FAQ
What is the fundamental rating for LTHM stock?
ChartMill assigns a fundamental rating of 7 / 10 to LTHM.
What is the valuation status for LTHM stock?
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.
What is the financial health of Livent Corporation (LTHM) stock?
The financial health rating of Livent Corporation (LTHM) is 7 / 10.