Livent Corporation (LTHM) Stock Fundamental Analysis
USA - 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 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 growing strongly while it also seems undervalued. This is an interesting combination With these ratings, LTHM could be worth investigating further for value and growth and quality investing!.
1. Profitability
1.1 Basic Checks
LTHM had positive earnings in the past year.
LTHM had a positive operating cash flow in the past year.
LTHM had positive earnings in 4 of the past 5 years.
In the past 5 years LTHM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LTHM (15.89%) is better than 96.43% of its industry peers.
LTHM has a better Return On Equity (21.55%) than 86.90% of its industry peers.
LTHM has a Return On Invested Capital of 16.86%. This is amongst the best in the industry. LTHM outperforms 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.
The Operating Margin of LTHM (51.57%) is better than 100.00% of its industry peers.
LTHM's Operating Margin has improved in the last couple of years.
LTHM has a Gross Margin of 58.78%. This is amongst the best in the industry. LTHM outperforms 94.05% of its industry peers.
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.
LTHM has a better debt/assets ratio than last year.
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.
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.
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'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.
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
A Current Ratio of 3.46 indicates that LTHM has no problem at all paying its short term obligations.
The Current ratio of LTHM (3.46) is better than 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.
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.
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
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.
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
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.
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 25.56.
The Price/Forward Earnings ratio is 9.03, which indicates a very decent valuation of LTHM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LTHM indicates a rather cheap valuation: LTHM is cheaper than 86.90% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.62, 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
LTHM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of LTHM 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 ChangeN/A
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.