Livent Corporation (LTHM) Fundamental Analysis & Valuation

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
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This LTHM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

7

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 evaluated to be cheap and growing strongly. This does not happen too often! With these ratings, LTHM could be worth investigating further for value and growth and quality investing!.


Dividend Valuation Growth Profitability Health

7

1. LTHM Profitability Analysis

1.1 Basic Checks

  • In the past year LTHM was profitable.
  • LTHM had a positive operating cash flow in the past year.
LTHM Yearly Net Income VS EBIT VS OCF VS FCFLTHM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 100M -100M 200M 300M 400M

1.2 Ratios

  • The Return On Assets of LTHM (15.89%) is better than 96.43% of its industry peers.
  • 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.
  • LTHM has a better Return On Invested Capital (16.86%) than 94.05% of its industry peers.
Industry RankSector 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
LTHM Yearly ROA, ROE, ROICLTHM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 5 10 15 20 25

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.
  • LTHM's Profit Margin has improved in the last couple of years.
  • 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.
  • LTHM's Gross Margin of 58.78% is amongst the best of the industry. LTHM outperforms 94.05% of its industry peers.
  • In the last couple of years the Gross Margin of LTHM has grown nicely.
Industry RankSector 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%
LTHM Yearly Profit, Operating, Gross MarginsLTHM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. LTHM Health Analysis

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.
  • Compared to 1 year ago, LTHM has an improved debt to assets ratio.
LTHM Yearly Shares OutstandingLTHM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M
LTHM Yearly Total Debt VS Total AssetsLTHM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B

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.
  • 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.
  • A Debt/Equity ratio of 0.14 indicates that LTHM is not too dependend on debt financing.
  • LTHM has a Debt to Equity ratio of 0.14. This is in the better half of the industry: LTHM outperforms 79.76% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF 6.03
Altman-Z 4.47
ROIC/WACC1.91
WACC8.85%
LTHM Yearly LT Debt VS Equity VS FCFLTHM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 500M 1B

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.
  • The Quick ratio of LTHM (1.99) is better than 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 3.46
Quick Ratio 1.99
LTHM Yearly Current Assets VS Current LiabilitesLTHM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M 500M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. LTHM Growth Analysis

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.
  • The Earnings Per Share has been growing by 36.22% on average over the past years. This is a very strong growth
  • The Revenue has grown by 28.38% in the past year. This is a very strong growth!
  • 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

  • LTHM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.99% yearly.
  • 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

  • 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.
LTHM Yearly Revenue VS EstimatesLTHM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B 1.5B 2B
LTHM Yearly EPS VS EstimatesLTHM Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 4 6

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Find the best growth stocksShow best growing peers

8

4. LTHM Valuation Analysis

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.
  • When comparing the Price/Earnings ratio of LTHM to the average of the S&P500 Index (25.71), we can say LTHM is valued rather cheaply.
  • 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 cheaper than 86.90% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, LTHM is valued rather cheaply.
Industry RankSector Rank
PE 8.47
Fwd PE 9.03
LTHM Price Earnings VS Forward Price EarningsLTHM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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.
  • LTHM's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 73.71
EV/EBITDA 6.15
LTHM Per share dataLTHM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

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.
  • 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%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. LTHM Dividend Analysis

5.1 Amount

  • No dividends for LTHM!.
Industry RankSector Rank
Dividend Yield N/A

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Find the best dividend stocksShow peers with best dividend

LTHM Fundamentals: All Metrics, Ratios and Statistics

Livent Corporation

NYSE:LTHM (1/3/2024, 8:08:28 PM)

After market: 16.3 -0.21 (-1.27%)

16.51

-1.54 (-8.53%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)10-31
Earnings (Next)02-12
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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.


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.