LUXFER HOLDINGS PLC (LXFR) Stock Fundamental Analysis
NYSE:LXFR - New York Stock Exchange, Inc. - GB00BNK03D49 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to LXFR. LXFR was compared to 128 industry peers in the Machinery industry. LXFR has an excellent financial health rating, but there are some minor concerns on its profitability. LXFR scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally LXFR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year LXFR was profitable.
LXFR had a positive operating cash flow in the past year.
Of the past 5 years LXFR 4 years were profitable.
In the past 5 years LXFR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LXFR (5.50%) is comparable to the rest of the industry.
With a Return On Equity value of 9.35%, LXFR perfoms like the industry average, outperforming 53.91% of the companies in the same industry.
LXFR has a Return On Invested Capital of 9.91%. This is in the better half of the industry: LXFR outperforms 67.97% of its industry peers.
LXFR had an Average Return On Invested Capital over the past 3 years of 8.65%. This is below the industry average of 10.69%.
The last Return On Invested Capital (9.91%) for LXFR is above the 3 year average (8.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 9.35% | ||
| ROIC | 9.91% |
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 (5.31%) which is in line with its industry peers.
In the last couple of years the Profit Margin of LXFR has grown nicely.
LXFR's Operating Margin of 10.71% is in line compared to the rest of the industry. LXFR outperforms 55.47% of its industry peers.
LXFR's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 22.20%, LXFR is doing worse than 68.75% of the companies in the same industry.
In the last couple of years the Gross Margin of LXFR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.71% | ||
| PM (TTM) | 5.31% | ||
| GM | 22.2% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LXFR is destroying value.
LXFR has less shares outstanding than it did 1 year ago.
LXFR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LXFR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.33 indicates that LXFR is not in any danger for bankruptcy at the moment.
LXFR has a Altman-Z score (3.33) which is in line with its industry peers.
The Debt to FCF ratio of LXFR is 1.09, which is an excellent value as it means it would take LXFR, only 1.09 years of fcf income to pay off all of its debts.
LXFR has a better Debt to FCF ratio (1.09) than 84.38% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that LXFR is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.20, LXFR is doing good in the industry, outperforming 71.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.09 | ||
| Altman-Z | 3.33 |
ROIC/WACC0.99
WACC10.03%
2.3 Liquidity
LXFR has a Current Ratio of 2.02. This indicates that LXFR is financially healthy and has no problem in meeting its short term obligations.
LXFR has a Current ratio (2.02) which is comparable to the rest of the industry.
A Quick Ratio of 1.03 indicates that LXFR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.03, LXFR is doing worse than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 83.64% over the past year.
Measured over the past years, LXFR shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.92% on average per year.
LXFR shows a small growth in Revenue. In the last year, the Revenue has grown by 1.63%.
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)83.64%
EPS 3Y-9.78%
EPS 5Y-7.92%
EPS Q2Q%46.67%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.56%
Revenue growth 5Y0.97%
Sales Q2Q%8.5%
3.2 Future
The Earnings Per Share is expected to grow by 13.16% on average over the next years. This is quite good.
Based on estimates for the next years, LXFR will show a small growth in Revenue. The Revenue will grow by 3.80% on average per year.
EPS Next Y8.51%
EPS Next 2Y13.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.31%
Revenue Next 2Y3.8%
Revenue Next 3YN/A
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 12.15.
Based on the Price/Earnings ratio, LXFR is valued cheaply inside the industry as 89.84% of the companies are valued more expensively.
LXFR is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
LXFR is valuated reasonably with a Price/Forward Earnings ratio of 10.19.
Based on the Price/Forward Earnings ratio, LXFR is valued cheaply inside the industry as 92.19% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. LXFR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.15 | ||
| Fwd PE | 10.19 |
4.2 Price Multiples
95.31% of the companies in the same industry are more expensive than LXFR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LXFR is valued cheaply inside the industry as 96.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.77 | ||
| EV/EBITDA | 6.51 |
4.3 Compensation for Growth
LXFR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as LXFR's earnings are expected to grow with 13.16% in the coming years.
PEG (NY)1.43
PEG (5Y)N/A
EPS Next 2Y13.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.10%, LXFR is a good candidate for dividend investing.
LXFR's Dividend Yield is rather good when compared to the industry average which is at 1.81. LXFR pays more dividend than 96.88% of the companies in the same industry.
LXFR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
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
LXFR pays out 66.04% of its income as dividend. This is not a sustainable payout ratio.
LXFR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP66.04%
EPS Next 2Y13.16%
EPS Next 3YN/A
12.27
-0.01 (-0.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.45%
Inst Owner Change0%
Ins Owners1.25%
Ins Owner Change6.21%
Market Cap328.47M
Analysts43.33
Price Target17.34 (41.32%)
Short Float %1.68%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
Yearly Dividend0.52
Dividend Growth(5Y)1.53%
DP66.04%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.83%
Min EPS beat(2)24.78%
Max EPS beat(2)26.87%
EPS beat(4)3
Avg EPS beat(4)24.19%
Min EPS beat(4)-1.96%
Max EPS beat(4)47.06%
EPS beat(8)5
Avg EPS beat(8)63.5%
EPS beat(12)7
Avg EPS beat(12)42.1%
EPS beat(16)10
Avg EPS beat(16)34.78%
Revenue beat(2)2
Avg Revenue beat(2)11.29%
Min Revenue beat(2)9.31%
Max Revenue beat(2)13.27%
Revenue beat(4)3
Avg Revenue beat(4)8.55%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)13.58%
Revenue beat(8)5
Avg Revenue beat(8)5.09%
Revenue beat(12)7
Avg Revenue beat(12)3.9%
Revenue beat(16)9
Avg Revenue beat(16)3.32%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.81%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.15 | ||
| Fwd PE | 10.19 | ||
| P/S | 0.82 | ||
| P/FCF | 7.77 | ||
| P/OCF | 6.22 | ||
| P/B | 1.45 | ||
| P/tB | 2.23 | ||
| EV/EBITDA | 6.51 |
EPS(TTM)1.01
EY8.23%
EPS(NY)1.2
Fwd EY9.81%
FCF(TTM)1.58
FCFY12.88%
OCF(TTM)1.97
OCFY16.07%
SpS14.92
BVpS8.47
TBVpS5.5
PEG (NY)1.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 9.35% | ||
| ROCE | 14.35% | ||
| ROIC | 9.91% | ||
| ROICexc | 10.05% | ||
| ROICexgc | 13.77% | ||
| OM | 10.71% | ||
| PM (TTM) | 5.31% | ||
| GM | 22.2% | ||
| FCFM | 10.59% |
ROA(3y)3.64%
ROA(5y)4.96%
ROE(3y)6.82%
ROE(5y)9.35%
ROIC(3y)8.65%
ROIC(5y)9.23%
ROICexc(3y)8.87%
ROICexc(5y)9.42%
ROICexgc(3y)12.19%
ROICexgc(5y)13.16%
ROCE(3y)12.53%
ROCE(5y)13.37%
ROICexcg growth 3Y-4.86%
ROICexcg growth 5Y-1.98%
ROICexc growth 3Y-3.81%
ROICexc growth 5Y-2.08%
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%
F-Score8
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.09 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 74.47% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 8.23 | ||
| Cash Conversion | 92.79% | ||
| Profit Quality | 199.53% | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 3.33 |
F-Score8
WACC10.03%
ROIC/WACC0.99
Cap/Depr(3y)71.63%
Cap/Depr(5y)66.68%
Cap/Sales(3y)2.34%
Cap/Sales(5y)2.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)83.64%
EPS 3Y-9.78%
EPS 5Y-7.92%
EPS Q2Q%46.67%
EPS Next Y8.51%
EPS Next 2Y13.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.56%
Revenue growth 5Y0.97%
Sales Q2Q%8.5%
Revenue Next Year4.31%
Revenue Next 2Y3.8%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y97.24%
EBIT growth 3Y-3.13%
EBIT growth 5Y-3.27%
EBIT Next Year30.92%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y2720%
FCF growth 3Y33.45%
FCF growth 5YN/A
OCF growth 1Y388.89%
OCF growth 3Y25.1%
OCF growth 5Y54.52%