Livent Corporation (LTHM)
US53814L1089 - Common Stock
LTHM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 85 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 would make LTHM suitable 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.
LTHM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LTHM (15.89%) is better than 96.43% of its industry peers.
The Return On Equity of LTHM (21.55%) is better 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
LTHM has a Profit Margin of 40.77%. This is amongst the best in 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.
In the last couple of years the Operating Margin of LTHM has grown nicely.
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.
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.
Compared to 1 year ago, LTHM has more shares outstanding
LTHM has more shares outstanding than it did 5 years 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.
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.
With a decent Debt to Equity ratio value of 0.14, LTHM is doing good in 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.
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.
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!
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
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
LTHM is valuated reasonably with a Price/Earnings ratio of 8.47.
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.
The average S&P500 Price/Earnings ratio is at 29.29. LTHM is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.03 indicates a reasonable valuation of LTHM.
Based on the Price/Forward Earnings ratio, LTHM is valued cheaply inside the industry as 86.90% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, LTHM is valued rather cheaply.
| 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
The 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 |
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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.97B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 9.03 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.2
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.89% | ||
| ROE | 21.55% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 51.57% | ||
| PM (TTM) | 40.77% | ||
| GM | 58.78% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.46 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)82.24%
EPS 3Y50.23%
EPS 5Y
EPS Q2Q%
EPS Next Y41.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)28.38%
Revenue growth 3Y27.93%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y