LANTHEUS HOLDINGS INC (NASDAQ:LNTH) was identified as a decent value stock through our screening process. The company shows solid profitability and financial health while trading at an attractive valuation. Its growth prospects, though moderating, remain positive. Below, we examine why LNTH stands out as a potential opportunity for value investors.
Valuation
The stock appears reasonably priced with a Price/Earnings (P/E) ratio of 11.76, significantly lower than both the industry average (27.49) and the S&P500 (26.31). Its Forward P/E of 10.30 also suggests a discount compared to peers. Additionally, LNTH’s Enterprise Value to EBITDA and Price/Free Cash Flow ratios are favorable, placing it cheaper than 90%+ of its industry competitors.
Financial Health
With a Health Rating of 9/10, LNTH demonstrates strong financial stability. Key highlights include:
- Low debt levels (Debt/Equity ratio of 0.49)
- High liquidity (Current Ratio of 5.74, Quick Ratio of 5.46)
- Strong solvency (Altman-Z score of 6.24, well above bankruptcy risk thresholds)
Profitability
The company earns a Profitability Rating of 9/10, supported by:
- High margins (Operating Margin of 29.30%, outperforming 98% of peers)
- Strong returns (ROIC of 18.93%, ROE of 21.85%)
- Consistent cash flow generation (positive operating cash flow over the past five years)
Growth
While growth is slowing, LNTH still holds a Growth Rating of 5/10, with:
- Past revenue growth of 34.59% annually
- EPS growth averaging 42.10% over recent years
- Expected future revenue growth of 7.69%
Our Decent Value Stocks screener lists more stocks with similar characteristics. For a deeper dive, review the full fundamental report on LNTH.
Disclaimer
This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own analysis before making investment decisions.
