For those who appreciate growth without the sticker shock, LANTHEUS HOLDINGS INC (NASDAQ:LNTH) is worth considering.

Take a closer look at LANTHEUS HOLDINGS INC (NASDAQ:LNTH), an affordable growth stock uncovered by our stock screener. LNTH boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Growth Examination for LNTH

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. LNTH has earned a 8 for growth:

• LNTH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.83%, which is quite good.
• LNTH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 42.10% yearly.
• The Revenue has grown by 18.32% in the past year. This is quite good.
• The Revenue has been growing by 34.59% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 13.42% on average over the next years. This is quite good.
• The Revenue is expected to grow by 11.12% on average over the next years. This is quite good.

Valuation Examination for LNTH

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. LNTH has achieved a 6 out of 10:

• Based on the Price/Earnings ratio, LNTH is valued cheaply inside the industry as 90.53% of the companies are valued more expensively.
• LNTH is valuated rather cheaply when we compare the Price/Earnings ratio to 28.90, which is the current average of the S&P500 Index.
• 89.47% of the companies in the same industry are more expensive than LNTH, based on the Price/Forward Earnings ratio.
• The average S&P500 Price/Forward Earnings ratio is at 21.58. LNTH is valued slightly cheaper when compared to this.
• Based on the Enterprise Value to EBITDA ratio, LNTH is valued cheaply inside the industry as 87.37% of the companies are valued more expensively.
• 91.58% of the companies in the same industry are more expensive than LNTH, based on the Price/Free Cash Flow ratio.
• The excellent profitability rating of LNTH may justify a higher PE ratio.

Exploring LNTH's Health

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 LNTH, the assigned 8 for health provides valuable insights:

• An Altman-Z score of 7.07 indicates that LNTH is not in any danger for bankruptcy at the moment.
• LNTH has a better Altman-Z score (7.07) than 87.37% of its industry peers.
• LNTH has a debt to FCF ratio of 1.22. This is a very positive value and a sign of high solvency as it would only need 1.22 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.22, LNTH belongs to the top of the industry, outperforming 91.05% 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 5.52 indicates that LNTH has no problem at all paying its short term obligations.
• The Current ratio of LNTH (5.52) is better than 79.47% of its industry peers.
• A Quick Ratio of 5.23 indicates that LNTH has no problem at all paying its short term obligations.
• With an excellent Quick ratio value of 5.23, LNTH belongs to the best of the industry, outperforming 81.58% of the companies in the same industry.

Looking at the Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. LNTH has earned a 9 out of 10:

• With an excellent Return On Assets value of 15.78%, LNTH belongs to the best of the industry, outperforming 95.79% of the companies in the same industry.
• LNTH's Return On Equity of 28.72% is amongst the best of the industry. LNTH outperforms 97.89% of its industry peers.
• LNTH has a Return On Invested Capital of 19.59%. This is amongst the best in the industry. LNTH outperforms 98.95% of its industry peers.
• LNTH had an Average Return On Invested Capital over the past 3 years of 16.25%. This is significantly above the industry average of 7.83%.
• The 3 year average ROIC (16.25%) for LNTH is below the current ROIC(19.59%), indicating increased profibility in the last year.
• LNTH has a better Profit Margin (20.37%) than 93.68% of its industry peers.
• In the last couple of years the Profit Margin of LNTH has grown nicely.
• Looking at the Operating Margin, with a value of 29.24%, LNTH belongs to the top of the industry, outperforming 97.89% of the companies in the same industry.
• In the last couple of years the Operating Margin of LNTH has grown nicely.
• With a decent Gross Margin value of 64.43%, LNTH is doing good in the industry, outperforming 66.84% of the companies in the same industry.
• In the last couple of years the Gross Margin of LNTH has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of LNTH contains the most current fundamental analsysis.

Disclaimer

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.