LUXFER HOLDINGS PLC (LXFR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LXFR - GB00BNK03D49 - Common Stock
14.99 USD
+0.24 (+1.63%)
Overall LXFR gets a fundamental rating of 6 out of 10. We evaluated LXFR against 132 industry peers in the Machinery industry. Both the profitability and the financial health of LXFR get a neutral evaluation. Nothing too spectacular is happening here. LXFR is valued quite cheap, while showing a decent growth score. This is a good combination! Finally LXFR also has an excellent dividend rating. These ratings would make LXFR suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year LXFR was profitable.
- In the past year LXFR had a positive cash flow from operations.
- Of the past 5 years LXFR 4 years were profitable.
- LXFR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- LXFR has a Return On Assets (3.79%) which is comparable to the rest of the industry.
- LXFR's Return On Equity of 6.17% is in line compared 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.
- The Average Return On Invested Capital over the past 3 years 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's Profit Margin of 3.60% is in line compared 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.
- LXFR has a Operating Margin of 9.21%. This is comparable to the rest of the industry: LXFR outperforms 53.03% of its industry peers.
- LXFR's Operating Margin has declined in the last couple of years.
- LXFR has a Gross Margin of 22.65%. This is in the lower half of the industry: LXFR underperforms 67.42% of its industry peers.
- In the last couple of years the Gross Margin of LXFR has declined.
| 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.
- The number of shares outstanding for LXFR has been reduced compared to 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 3.61. This indicates that LXFR is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of LXFR (3.61) is better than 61.36% 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.
- With an excellent Debt to FCF ratio value of 1.19, LXFR belongs to the best of the industry, outperforming 85.61% of the companies in the same industry.
- A Debt/Equity ratio of 0.08 indicates that LXFR is not too dependend on debt financing.
- The Debt to Equity ratio of LXFR (0.08) is better than 80.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 3.61 |
ROIC/WACC0.94
WACC9.75%
2.3 Liquidity
- LXFR has a Current Ratio of 1.66. This is a normal value and indicates that LXFR is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.66, LXFR is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- 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.
- The Earnings Per Share has been decreasing by -7.92% on average over the past years.
- LXFR shows a small growth in Revenue. In the last year, the Revenue has grown by 3.36%.
- The Revenue has been growing slightly by 0.97% on average over the past years.
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
- LXFR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.28% yearly.
- LXFR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.77% yearly.
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
- The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 13.63, LXFR is valued correctly.
- Based on the Price/Earnings ratio, LXFR is valued cheaper than 91.67% of the companies in the same industry.
- When comparing the Price/Earnings ratio of LXFR to the average of the S&P500 Index (28.60), we can say LXFR is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 12.45, the valuation of LXFR can be described as correct.
- Based on the Price/Forward Earnings ratio, LXFR is valued cheaply inside the industry as 92.42% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, LXFR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 12.45 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LXFR is valued cheaper than 87.88% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, LXFR is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.03 | ||
| EV/EBITDA | 9.24 |
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)0.85
PEG (5Y)N/A
EPS Next 2Y13.16%
EPS Next 3Y11.28%
5. Dividend
5.1 Amount
- LXFR has a Yearly Dividend Yield of 3.30%. Purely for dividend investing, there may be better candidates out there.
- LXFR's Dividend Yield is rather good when compared to the industry average which is at 1.01. LXFR pays more dividend than 96.21% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, LXFR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
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 97.90% of its income as dividend. 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 7 / 10 to LUXFER HOLDINGS PLC (LXFR). This can be considered as Undervalued.
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 13.63 and the Price/Book (PB) ratio is 1.73.
Can you provide the financial health for LXFR stock?
The financial health rating of LUXFER HOLDINGS PLC (LXFR) is 6 / 10.