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

We assign a fundamental rating of 7 out of 10 to LTHM. 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. An interesting combination arises when we look at growth and value: LTHM is growing strongly while it also seems undervalued. These ratings could make LTHM a good candidate 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

  • LTHM's Return On Assets of 15.89% is amongst the best of the industry. LTHM outperforms 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 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

  • LTHM has a Profit Margin of 40.77%. This is amongst the best in the industry. LTHM outperforms 98.81% of its industry peers.
  • 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.
  • 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.
  • LTHM's Gross Margin has improved in the last couple of years.
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.
  • Compared to 1 year ago, LTHM has more shares outstanding
  • The debt/assets ratio for LTHM has been reduced compared to a year ago.
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.
  • LTHM has a Altman-Z score of 4.47. This is amongst the best in 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.
  • The Debt to FCF ratio of LTHM (6.03) is better 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 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

  • 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.
  • The Current ratio of LTHM (3.46) is better than 79.76% of its industry peers.
  • 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.
  • Looking at the Quick ratio, with a value of 1.99, LTHM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
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.
  • LTHM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.22% yearly.
  • 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.
  • LTHM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.07% yearly.
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.
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

  • 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.
  • Compared to an average S&P500 Price/Earnings ratio of 27.03, LTHM is valued rather cheaply.
  • A Price/Forward Earnings ratio of 9.03 indicates a reasonable valuation of LTHM.
  • LTHM's Price/Forward Earnings ratio is rather cheap when compared to the industry. LTHM is cheaper than 86.90% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of LTHM to the average of the S&P500 Index (25.11), we can say 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

  • 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 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

  • The 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.
  • 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%

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

0

5. LTHM Dividend Analysis

5.1 Amount

  • LTHM does not give a dividend.
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.