Livent Corporation (LTHM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LTHM - US53814L1089 - Common Stock
16.51 USD
-1.54 (-8.53%)
16.3 USD
-0.21 (-1.27%)
We assign a fundamental rating of 7 out of 10 to LTHM. LTHM was compared to 83 industry peers in the Chemicals industry. LTHM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LTHM is evaluated to be cheap and growing strongly. This does not happen too often! These ratings could make LTHM a good candidate for value and growth and quality investing.
1. Profitability
1.1 Basic Checks
- In the past year LTHM was profitable.
- In the past year LTHM had a positive cash flow from operations.
1.2 Ratios
- With an excellent Return On Assets value of 15.89%, LTHM belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
- With an excellent Return On Equity value of 21.55%, LTHM belongs to the best of the industry, outperforming 86.90% of the companies in the same industry.
- LTHM has a better Return On Invested Capital (16.86%) than 94.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.89% | ||
| ROE | 21.55% | ||
| ROIC | 16.86% |
ROA(3y)3.83%
ROA(5y)7.29%
ROE(3y)5.38%
ROE(5y)10.24%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of LTHM (40.77%) is better than 98.81% of its industry peers.
- LTHM's Profit Margin has improved in the last couple of years.
- LTHM has a Operating Margin of 51.57%. This is amongst the best in the industry. LTHM outperforms 100.00% of its industry peers.
- In the last couple of years the Operating Margin of LTHM has grown nicely.
- LTHM has a Gross Margin of 58.78%. This is amongst the best in the industry. LTHM outperforms 94.05% of its industry peers.
- In the last couple of years the Gross Margin of LTHM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 51.57% | ||
| PM (TTM) | 40.77% | ||
| GM | 58.78% |
OM growth 3Y31.56%
OM growth 5Y5.62%
PM growth 3Y37.55%
PM growth 5Y22.59%
GM growth 3Y18.28%
GM growth 5Y2.71%
2. Health
2.1 Basic Checks
- LTHM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for LTHM has been increased compared to 1 year ago.
- The debt/assets ratio for LTHM has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.47 indicates that LTHM is not in any danger for bankruptcy at the moment.
- The Altman-Z score of LTHM (4.47) is better than 91.67% of its industry peers.
- LTHM has a debt to FCF ratio of 6.03. This is a slightly negative value and a sign of low solvency as LTHM would need 6.03 years to pay back of all of its debts.
- LTHM has a better Debt to FCF ratio (6.03) than 64.29% of its industry peers.
- A Debt/Equity ratio of 0.14 indicates that LTHM is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.14, LTHM is doing good in the industry, outperforming 79.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 4.47 |
ROIC/WACC1.91
WACC8.85%
2.3 Liquidity
- LTHM has a Current Ratio of 3.46. This indicates that LTHM is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 3.46, LTHM is in the better half of the industry, outperforming 79.76% of the companies in the same industry.
- LTHM has a Quick Ratio of 1.99. This is a normal value and indicates that LTHM is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Quick ratio value of 1.99, LTHM is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.46 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 82.24% over the past year.
- LTHM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.22% yearly.
- Looking at the last year, LTHM shows a very strong growth in Revenue. The Revenue has grown by 28.38%.
- Measured over the past years, LTHM shows a quite strong growth in Revenue. The Revenue has been growing by 18.54% on average per year.
EPS 1Y (TTM)82.24%
EPS 3Y50.23%
EPS 5Y36.22%
EPS Q2Q%7.32%
Revenue 1Y (TTM)28.38%
Revenue growth 3Y27.93%
Revenue growth 5Y18.54%
Sales Q2Q%-8.72%
3.2 Future
- LTHM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.99% yearly.
- Based on estimates for the next years, LTHM will show a quite strong growth in Revenue. The Revenue will grow by 19.07% on average per year.
EPS Next Y41.69%
EPS Next 2Y14.68%
EPS Next 3Y17.85%
EPS Next 5Y30.99%
Revenue Next Year10.53%
Revenue Next 2Y11%
Revenue Next 3Y16.09%
Revenue Next 5Y19.07%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 8.47, the valuation of LTHM can be described as reasonable.
- Based on the Price/Earnings ratio, LTHM is valued cheaper than 83.33% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.39. LTHM is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 9.03, the valuation of LTHM can be described as reasonable.
- Based on the Price/Forward Earnings ratio, LTHM is valued cheaply inside the industry as 86.90% of the companies are valued more expensively.
- LTHM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 9.03 |
4.2 Price Multiples
- LTHM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LTHM is cheaper than 80.95% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LTHM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 73.71 | ||
| EV/EBITDA | 6.15 |
4.3 Compensation for Growth
- LTHM'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 LTHM may justify a higher PE ratio.
- A more expensive valuation may be justified as LTHM's earnings are expected to grow with 17.85% in the coming years.
PEG (NY)0.2
PEG (5Y)0.23
EPS Next 2Y14.68%
EPS Next 3Y17.85%
5. Dividend
5.1 Amount
- LTHM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Livent Corporation / LTHM FAQ
What is the fundamental rating for LTHM stock?
ChartMill assigns a fundamental rating of 7 / 10 to LTHM.
Can you provide the valuation status for Livent Corporation?
ChartMill assigns a valuation rating of 8 / 10 to Livent Corporation (LTHM). This can be considered as Undervalued.
What is the profitability of LTHM stock?
Livent Corporation (LTHM) has a profitability rating of 8 / 10.
Can you provide the financial health for LTHM stock?
The financial health rating of Livent Corporation (LTHM) is 7 / 10.