Discover LANTHEUS HOLDINGS INC (NASDAQ:LNTH), an undervalued stock highlighted by our stock screener. NASDAQ:LNTH showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.
Unpacking NASDAQ:LNTH's Valuation Rating
ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:LNTH boasts a 8 out of 10:
- 97.52% of the companies in the same industry are more expensive than LNTH, based on the Price/Earnings ratio.
- LNTH is valuated cheaply when we compare the Price/Earnings ratio to 24.69, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 11.53, the valuation of LNTH can be described as reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LNTH indicates a rather cheap valuation: LNTH is cheaper than 95.54% of the companies listed in the same industry.
- LNTH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 19.79.
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LNTH indicates a rather cheap valuation: LNTH is cheaper than 80.69% of the companies listed in the same industry.
- LNTH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LNTH is cheaper than 93.56% of the companies in the same industry.
- LNTH's 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.
Looking at the Profitability
ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:LNTH, the assigned 7 is noteworthy for profitability:
- With an excellent Return On Assets value of 6.84%, LNTH belongs to the best of the industry, outperforming 88.12% of the companies in the same industry.
- LNTH has a better Return On Equity (14.90%) than 92.08% of its industry peers.
- LNTH has a Return On Invested Capital of 11.01%. This is amongst the best in the industry. LNTH outperforms 93.07% of its industry peers.
- The Profit Margin of LNTH (8.63%) is better than 84.16% of its industry peers.
- Looking at the Operating Margin, with a value of 15.55%, LNTH belongs to the top of the industry, outperforming 88.61% of the companies in the same industry.
- LNTH's Gross Margin of 63.31% is fine compared to the rest of the industry. LNTH outperforms 65.84% of its industry peers.
- LNTH's Gross Margin has improved in the last couple of years.
What does the Health looks like for NASDAQ:LNTH
ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:LNTH, the assigned 7 reflects its health status:
- LNTH has an Altman-Z score of 5.41. This indicates that LNTH is financially healthy and has little risk of bankruptcy at the moment.
- LNTH has a better Altman-Z score (5.41) than 81.68% of its industry peers.
- LNTH has a debt to FCF ratio of 2.17. This is a good value and a sign of high solvency as LNTH would need 2.17 years to pay back of all of its debts.
- LNTH has a Debt to FCF ratio of 2.17. This is amongst the best in the industry. LNTH outperforms 90.59% of its industry peers.
- 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 5.37 indicates that LNTH has no problem at all paying its short term obligations.
- The Current ratio of LNTH (5.37) is better than 69.31% of its industry peers.
- LNTH has a Quick Ratio of 5.05. This indicates that LNTH is financially healthy and has no problem in meeting its short term obligations.
- With a decent Quick ratio value of 5.05, LNTH is doing good in the industry, outperforming 72.77% of the companies in the same industry.
Assessing Growth for NASDAQ:LNTH
To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:LNTH has achieved a 8 out of 10:
- The Earnings Per Share has grown by an impressive 88.71% over the past year.
- Measured over the past years, LNTH shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.91% on average per year.
- Looking at the last year, LNTH shows a very strong growth in Revenue. The Revenue has grown by 50.42%.
- LNTH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.06% yearly.
- The Earnings Per Share is expected to grow by 14.93% on average over the next years. This is quite good.
- Based on estimates for the next years, LNTH will show a quite strong growth in Revenue. The Revenue will grow by 14.68% on average per year.
More Decent Value stocks can be found in our Decent Value screener.
For an up to date full fundamental analysis you can check the fundamental report of LNTH
Keep in mind
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.