LANTHEUS HOLDINGS INC (NASDAQ:LNTH) – An Undervalued Stock with Strong Fundamentals

LANTHEUS HOLDINGS INC (NASDAQ:LNTH) was identified through a 'Decent Value' screen, which looks for stocks with solid valuation metrics while maintaining good profitability, financial health, and growth potential. LNTH stands out as an undervalued opportunity in the healthcare equipment sector, supported by strong fundamentals.

Valuation

LNTH has a Valuation Rating of 7/10, indicating it is priced attractively relative to its fundamentals. Key points include:

• P/E ratio of 12.15, well below the industry average of 29.04 and the S&P 500 average of 27.45.
• Forward P/E of 10.64, suggesting the stock remains reasonably priced even when accounting for future earnings.
• Enterprise Value/EBITDA and Price/Free Cash Flow ratios are both lower than 91% of industry peers, reinforcing its undervaluation.

Financial Health

With a Health Rating of 9/10, LNTH demonstrates strong financial stability:

• Current Ratio of 5.74 and Quick Ratio of 5.46 indicate ample liquidity to cover short-term obligations.
• Debt-to-Equity ratio of 0.49 reflects a balanced capital structure.
• Altman-Z score of 6.26 signals low bankruptcy risk, outperforming 81.82% of industry peers.

Profitability

LNTH earns a Profitability Rating of 9/10, driven by:

• Return on Assets (12.37%) and Return on Equity (21.85%) rank in the top 6-7% of the industry.
• Operating Margin of 29.30% is among the best in the sector, outperforming 98.4% of competitors.
• Consistent improvement in Gross Margin (64.04%) and Profit Margin (16.55%) over recent years.

Growth

While growth is more moderate, LNTH still holds a Growth Rating of 5/10:

• Revenue growth of 12.53% YoY and a 3-year annualized growth rate of 34.59%.
• EPS growth of 42.10% annually over the past three years, though future growth is expected to slow to ~7%.

For a deeper look, review the full fundamental analysis report for LNTH.

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Disclaimer

This is not investment advice. The observations here are based on available data at the time of writing. Always conduct your own research before making investment decisions.