LANTHEUS HOLDINGS INC (NASDAQ:LNTH) was identified as an affordable growth stock by our stock screener. NASDAQ:LNTH is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.
Understanding NASDAQ:LNTH's Growth Score
ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:LNTH was assigned a score of 8 for growth:
- The Earnings Per Share has grown by an impressive 145.21% over the past year.
- The Earnings Per Share has been growing by 33.91% on average over the past years. This is a very strong growth
- LNTH shows a strong growth in Revenue. In the last year, the Revenue has grown by 69.36%.
- Measured over the past years, LNTH shows a very strong growth in Revenue. The Revenue has been growing by 23.05% on average per year.
- LNTH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.93% yearly.
- The Revenue is expected to grow by 14.68% on average over the next years. This is quite good.
Understanding NASDAQ:LNTH's Valuation Score
ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:LNTH, the assigned 8 reflects its valuation:
- LNTH's Price/Earnings ratio is rather cheap when compared to the industry. LNTH is cheaper than 94.53% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 23.21, LNTH is valued a bit cheaper.
- The Price/Forward Earnings ratio is 10.64, which indicates a very decent valuation of LNTH.
- LNTH's Price/Forward Earnings ratio is rather cheap when compared to the industry. LNTH is cheaper than 96.02% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 18.26, LNTH is valued a bit cheaper.
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LNTH indicates a somewhat cheap valuation: LNTH is cheaper than 76.62% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LNTH indicates a rather cheap valuation: LNTH is cheaper than 94.03% of the companies listed in the same industry.
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of LNTH may justify a higher PE ratio.
- LNTH's earnings are expected to grow with 14.90% in the coming years. This may justify a more expensive valuation.
How We Gauge Health for NASDAQ:LNTH
ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:LNTH, the assigned 7 for health provides valuable insights:
- An Altman-Z score of 5.12 indicates that LNTH is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 5.12, LNTH belongs to the best of the industry, outperforming 82.59% of the companies in the same industry.
- The Debt to FCF ratio of LNTH is 2.29, which is a good value as it means it would take LNTH, 2.29 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 2.29, LNTH belongs to the best of the industry, outperforming 92.04% of the companies in the same industry.
- Although LNTH does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
- A Current Ratio of 4.88 indicates that LNTH has no problem at all paying its short term obligations.
- LNTH has a better Current ratio (4.88) than 62.69% of its industry peers.
- LNTH has a Quick Ratio of 4.55. This indicates that LNTH is financially healthy and has no problem in meeting its short term obligations.
- LNTH's Quick ratio of 4.55 is fine compared to the rest of the industry. LNTH outperforms 66.67% of its industry peers.
Analyzing Profitability Metrics
ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:LNTH, the assigned 6 is a significant indicator of profitability:
- LNTH has a better Return On Assets (2.49%) than 78.11% of its industry peers.
- The Return On Equity of LNTH (6.04%) is better than 81.09% of its industry peers.
- LNTH's Return On Invested Capital of 10.74% is amongst the best of the industry. LNTH outperforms 93.03% of its industry peers.
- LNTH has a better Profit Margin (2.97%) than 75.62% of its industry peers.
- With an excellent Operating Margin value of 14.30%, LNTH belongs to the best of the industry, outperforming 86.57% of the companies in the same industry.
- With a decent Gross Margin value of 63.18%, LNTH is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- In the last couple of years the Gross Margin of LNTH has grown nicely.
More Affordable Growth stocks can be found in our Affordable Growth screener.
Our latest full fundamental report of LNTH contains the most current fundamental analsysis.
Keep in mind
This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.