Livent Corporation (LTHM) Fundamental Analysis & Valuation

NYSE:LTHM • US53814L1089

Current stock price

16.51 USD
-1.54 (-8.53%)
At close:
16.3 USD
-0.21 (-1.27%)
After Hours:

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

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.
  • Looking at the Return On Invested Capital, with a value of 16.86%, LTHM belongs to the top of the industry, outperforming 94.05% of the companies in the same industry.
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

  • 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.
  • LTHM has a better Operating Margin (51.57%) 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 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

  • 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.
  • 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

  • An Altman-Z score of 4.47 indicates that LTHM is not in any danger for bankruptcy at the moment.
  • LTHM's Altman-Z score of 4.47 is amongst the best of the industry. LTHM outperforms 91.67% of its industry peers.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 6.03, LTHM is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
  • A Debt/Equity ratio of 0.14 indicates that LTHM is not too dependend on debt financing.
  • LTHM has a better Debt to Equity ratio (0.14) than 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.
  • LTHM has a better Current ratio (3.46) 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.
  • 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

  • The Earnings Per Share has grown by an impressive 82.24% over the past year.
  • 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%.
  • LTHM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.54% yearly.
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

  • 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

  • A Price/Earnings ratio of 8.47 indicates a reasonable valuation of LTHM.
  • Based on the Price/Earnings ratio, LTHM is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 25.23, LTHM is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 9.03, the valuation of LTHM can be described as very reasonable.
  • 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.
  • The average S&P500 Price/Forward Earnings ratio is at 23.28. LTHM is valued rather cheaply when compared to this.
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.
  • 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

  • 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 Fundamental Analysis 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.