LUXFER HOLDINGS PLC (LXFR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LXFR - GB00BNK03D49 - Common Stock
15.15 USD
-0.49 (-3.13%)
Taking everything into account, LXFR scores 6 out of 10 in our fundamental rating. LXFR was compared to 132 industry peers in the Machinery industry. LXFR has an average financial health and profitability rating. LXFR has a decent growth rate and is not valued too expensively. LXFR also has an excellent dividend rating. With these ratings, LXFR could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
- LXFR had positive earnings in the past year.
- In the past year LXFR had a positive cash flow from operations.
- LXFR had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years LXFR had a positive operating cash flow.
1.2 Ratios
- LXFR has a Return On Assets (3.79%) which is comparable to the rest of the industry.
- LXFR has a Return On Equity of 6.17%. This is comparable to the rest of the industry: LXFR outperforms 46.97% of its industry peers.
- LXFR's Return On Invested Capital of 9.14% is fine compared to the rest of the industry. LXFR outperforms 66.67% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for LXFR is in line with the industry average of 10.24%.
- The last Return On Invested Capital (9.14%) for LXFR is above the 3 year average (8.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 6.17% | ||
| ROIC | 9.14% |
ROA(3y)3.64%
ROA(5y)4.96%
ROE(3y)6.82%
ROE(5y)9.35%
ROIC(3y)8.65%
ROIC(5y)9.23%
1.3 Margins
- LXFR has a Profit Margin of 3.60%. This is comparable to the rest of the industry: LXFR outperforms 46.21% of its industry peers.
- In the last couple of years the Profit Margin of LXFR has grown nicely.
- With a Operating Margin value of 9.21%, LXFR perfoms like the industry average, outperforming 53.03% of the companies in the same industry.
- In the last couple of years the Operating Margin of LXFR has declined.
- LXFR's Gross Margin of 22.65% is on the low side compared to the rest of the industry. LXFR is outperformed by 67.42% of its industry peers.
- LXFR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.21% | ||
| PM (TTM) | 3.6% | ||
| GM | 22.65% |
OM growth 3Y-4.62%
OM growth 5Y-4.2%
PM growth 3Y-16.25%
PM growth 5Y41.41%
GM growth 3Y-5.19%
GM growth 5Y-4.67%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LXFR is destroying value.
- LXFR has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, LXFR has less shares outstanding
- LXFR has a better debt/assets ratio than last year.
2.2 Solvency
- LXFR has an Altman-Z score of 3.72. This indicates that LXFR is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of LXFR (3.72) is better than 62.88% of its industry peers.
- The Debt to FCF ratio of LXFR is 1.19, which is an excellent value as it means it would take LXFR, only 1.19 years of fcf income to pay off all of its debts.
- LXFR's Debt to FCF ratio of 1.19 is amongst the best of the industry. LXFR outperforms 86.36% of its industry peers.
- A Debt/Equity ratio of 0.08 indicates that LXFR is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.08, LXFR belongs to the top of the industry, outperforming 81.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 3.72 |
ROIC/WACC0.92
WACC9.89%
2.3 Liquidity
- A Current Ratio of 1.66 indicates that LXFR should not have too much problems paying its short term obligations.
- LXFR has a worse Current ratio (1.66) than 66.67% of its industry peers.
- A Quick Ratio of 0.71 indicates that LXFR may have some problems paying its short term obligations.
- LXFR has a Quick ratio of 0.71. This is amonst the worse of the industry: LXFR underperforms 82.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
- LXFR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.67%, which is quite impressive.
- LXFR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.92% yearly.
- LXFR shows a small growth in Revenue. In the last year, the Revenue has grown by 3.36%.
- Measured over the past years, LXFR shows a small growth in Revenue. The Revenue has been growing by 0.97% on average per year.
EPS 1Y (TTM)46.67%
EPS 3Y-9.78%
EPS 5Y-7.92%
EPS Q2Q%11.11%
Revenue 1Y (TTM)3.36%
Revenue growth 3Y1.56%
Revenue growth 5Y0.97%
Sales Q2Q%-6.54%
3.2 Future
- The Earnings Per Share is expected to grow by 11.28% on average over the next years. This is quite good.
- The Revenue is expected to grow by 1.77% on average over the next years.
EPS Next Y16.11%
EPS Next 2Y13.16%
EPS Next 3Y11.28%
EPS Next 5YN/A
Revenue Next Year2.27%
Revenue Next 2Y0.67%
Revenue Next 3Y1.77%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- LXFR is valuated correctly with a Price/Earnings ratio of 13.77.
- LXFR's Price/Earnings ratio is rather cheap when compared to the industry. LXFR is cheaper than 89.39% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.30. LXFR is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 12.59, LXFR is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LXFR indicates a rather cheap valuation: LXFR is cheaper than 92.42% of the companies listed in the same industry.
- LXFR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.77 | ||
| Fwd PE | 12.59 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LXFR is valued cheaper than 86.36% of the companies in the same industry.
- LXFR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LXFR is cheaper than 90.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.15 | ||
| EV/EBITDA | 9.82 |
4.3 Compensation for Growth
- LXFR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.86
PEG (5Y)N/A
EPS Next 2Y13.16%
EPS Next 3Y11.28%
5. Dividend
5.1 Amount
- LXFR has a Yearly Dividend Yield of 3.41%.
- Compared to an average industry Dividend Yield of 0.98, LXFR pays a better dividend. On top of this LXFR pays more dividend than 96.21% of the companies listed in the same industry.
- LXFR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
5.2 History
- The dividend of LXFR has a limited annual growth rate of 1.53%.
- LXFR has paid a dividend for at least 10 years, which is a reliable track record.
- LXFR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.53%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
- 97.90% of the earnings are spent on dividend by LXFR. This is not a sustainable payout ratio.
- The dividend of LXFR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP97.9%
EPS Next 2Y13.16%
EPS Next 3Y11.28%
LUXFER HOLDINGS PLC / LXFR FAQ
What is the ChartMill fundamental rating of LUXFER HOLDINGS PLC (LXFR) stock?
ChartMill assigns a fundamental rating of 6 / 10 to LXFR.
Can you provide the valuation status for LUXFER HOLDINGS PLC?
ChartMill assigns a valuation rating of 6 / 10 to LUXFER HOLDINGS PLC (LXFR). This can be considered as Fairly Valued.
What is the profitability of LXFR stock?
LUXFER HOLDINGS PLC (LXFR) has a profitability rating of 5 / 10.
What is the valuation of LUXFER HOLDINGS PLC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LUXFER HOLDINGS PLC (LXFR) is 13.77 and the Price/Book (PB) ratio is 1.75.
Can you provide the financial health for LXFR stock?
The financial health rating of LUXFER HOLDINGS PLC (LXFR) is 6 / 10.