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Livent Corporation (LTHM) Stock Fundamental Analysis

NYSE:LTHM - New York Stock Exchange, Inc. - US53814L1089 - Common Stock - Currency: USD

16.51  -1.54 (-8.53%)

After market: 16.3 -0.21 (-1.27%)

Fundamental Rating

7

Overall LTHM gets a fundamental rating of 7 out of 10. We evaluated LTHM against 85 industry peers in the Chemicals industry. LTHM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LTHM is growing strongly while it also seems undervalued. This is an interesting combination With these ratings, LTHM could be worth investigating further for value and growth and quality investing!.


Dividend Valuation Growth Profitability Health

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8

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.
LTHM had positive earnings in 4 of the past 5 years.
LTHM had a positive operating cash flow in each of the past 5 years.
LTHM Yearly Net Income VS EBIT VS OCF VS FCFLTHM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 100M -100M 200M 300M 400M

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 RankSector 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
LTHM Yearly ROA, ROE, ROICLTHM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 5 10 15 20 25

1.3 Margins

LTHM has a better Profit Margin (40.77%) than 98.81% of its industry peers.
In the last couple of years the Profit Margin of LTHM has grown nicely.
With an excellent Operating Margin value of 51.57%, LTHM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
LTHM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 58.78%, LTHM belongs to the top of the industry, outperforming 94.05% of the companies in the same industry.
In the last couple of years the Gross Margin of LTHM has grown nicely.
Industry RankSector 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%
LTHM Yearly Profit, Operating, Gross MarginsLTHM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 10 20 30 40

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7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LTHM is creating value.
LTHM has more shares outstanding than it did 1 year ago.
The debt/assets ratio for LTHM has been reduced compared to a year ago.
LTHM Yearly Shares OutstandingLTHM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M
LTHM Yearly Total Debt VS Total AssetsLTHM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B

2.2 Solvency

An Altman-Z score of 4.47 indicates that LTHM is not in any danger for bankruptcy at the moment.
LTHM has a Altman-Z score of 4.47. This is amongst the best in the industry. LTHM outperforms 91.67% of its industry peers.
The Debt to FCF ratio of LTHM is 6.03, which is on the high side as it means it would take LTHM, 6.03 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.03, LTHM is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
LTHM has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of LTHM (0.14) is better than 79.76% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF 6.03
Altman-Z 4.47
ROIC/WACC1.91
WACC8.85%
LTHM Yearly LT Debt VS Equity VS FCFLTHM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 500M 1B

2.3 Liquidity

A Current Ratio of 3.46 indicates that LTHM has no problem at all paying its short term obligations.
The Current ratio of LTHM (3.46) is better than 79.76% of its industry peers.
A Quick Ratio of 1.99 indicates that LTHM should not have too much problems paying its short term obligations.
LTHM has a Quick ratio of 1.99. This is in the better half of the industry: LTHM outperforms 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 3.46
Quick Ratio 1.99
LTHM Yearly Current Assets VS Current LiabilitesLTHM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M 500M

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8

3. Growth

3.1 Past

LTHM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 82.24%, which is quite impressive.
The Earnings Per Share has been growing by 36.22% on average over the past years. This is a very strong growth
The Revenue has grown by 28.38% in the past year. This is a very strong growth!
LTHM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.54% yearly.
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.
LTHM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.07% yearly.
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

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
LTHM Yearly Revenue VS EstimatesLTHM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B 1.5B 2B
LTHM Yearly EPS VS EstimatesLTHM Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 4 6

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8

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 8.47 indicates a reasonable valuation of LTHM.
LTHM's Price/Earnings ratio is rather cheap when compared to the industry. LTHM is cheaper than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.25, LTHM is valued rather cheaply.
A Price/Forward Earnings ratio of 9.03 indicates a reasonable valuation of LTHM.
Based on the Price/Forward Earnings ratio, LTHM is valued cheaper than 86.90% of the companies in the same industry.
LTHM is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.47
Fwd PE 9.03
LTHM Price Earnings VS Forward Price EarningsLTHM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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.
LTHM's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 73.71
EV/EBITDA 6.15
LTHM Per share dataLTHM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

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 excellent 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%

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0

5. Dividend

5.1 Amount

LTHM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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Livent Corporation

NYSE:LTHM (1/3/2024, 8:08:28 PM)

After market: 16.3 -0.21 (-1.27%)

16.51

-1.54 (-8.53%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)10-31 2023-10-31/amc
Earnings (Next)02-12 2024-02-12/amc
Inst Owners0.94%
Inst Owner Change0%
Ins Owners0.04%
Ins Owner Change0%
Market Cap2.97B
Analysts78.4
Price Target24.83 (50.39%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.12%
Min EPS beat(2)-6.14%
Max EPS beat(2)6.38%
EPS beat(4)3
Avg EPS beat(4)13.31%
Min EPS beat(4)-6.14%
Max EPS beat(4)49.43%
EPS beat(8)7
Avg EPS beat(8)17.45%
EPS beat(12)9
Avg EPS beat(12)-2.18%
EPS beat(16)9
Avg EPS beat(16)-58.9%
Revenue beat(2)0
Avg Revenue beat(2)-15.66%
Min Revenue beat(2)-22.75%
Max Revenue beat(2)-8.57%
Revenue beat(4)1
Avg Revenue beat(4)-8.8%
Min Revenue beat(4)-22.75%
Max Revenue beat(4)6.45%
Revenue beat(8)4
Avg Revenue beat(8)-3.59%
Revenue beat(12)7
Avg Revenue beat(12)-0.31%
Revenue beat(16)8
Avg Revenue beat(16)-2.88%
PT rev (1m)-6.33%
PT rev (3m)-22.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-29.68%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-31.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-13.67%
Valuation
Industry RankSector Rank
PE 8.47
Fwd PE 9.03
P/S 3.23
P/FCF 73.71
P/OCF 7.65
P/B 1.71
P/tB 1.71
EV/EBITDA 6.15
EPS(TTM)1.95
EY11.81%
EPS(NY)1.83
Fwd EY11.07%
FCF(TTM)0.22
FCFY1.36%
OCF(TTM)2.16
OCFY13.07%
SpS5.11
BVpS9.67
TBVpS9.67
PEG (NY)0.2
PEG (5Y)0.23
Profitability
Industry RankSector Rank
ROA 15.89%
ROE 21.55%
ROCE 21.35%
ROIC 16.86%
ROICexc 17.76%
ROICexgc 17.77%
OM 51.57%
PM (TTM) 40.77%
GM 58.78%
FCFM 4.38%
ROA(3y)3.83%
ROA(5y)7.29%
ROE(3y)5.38%
ROE(5y)10.24%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y25.49%
ROICexcg growth 5Y-6.33%
ROICexc growth 3Y25.52%
ROICexc growth 5Y-6.24%
OM growth 3Y31.56%
OM growth 5Y5.62%
PM growth 3Y37.55%
PM growth 5Y22.59%
GM growth 3Y18.28%
GM growth 5Y2.71%
F-Score7
Asset Turnover0.39
Health
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF 6.03
Debt/EBITDA 0.48
Cap/Depr 1167.79%
Cap/Sales 37.82%
Interest Coverage 41.26
Cash Conversion 77%
Profit Quality 10.74%
Current Ratio 3.46
Quick Ratio 1.99
Altman-Z 4.47
F-Score7
WACC8.85%
ROIC/WACC1.91
Cap/Depr(3y)745.91%
Cap/Depr(5y)706.61%
Cap/Sales(3y)38.61%
Cap/Sales(5y)35.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)82.24%
EPS 3Y50.23%
EPS 5Y36.22%
EPS Q2Q%7.32%
EPS Next Y41.69%
EPS Next 2Y14.68%
EPS Next 3Y17.85%
EPS Next 5Y30.99%
Revenue 1Y (TTM)28.38%
Revenue growth 3Y27.93%
Revenue growth 5Y18.54%
Sales Q2Q%-8.72%
Revenue Next Year10.53%
Revenue Next 2Y11%
Revenue Next 3Y16.09%
Revenue Next 5Y19.07%
EBIT growth 1Y113.26%
EBIT growth 3Y68.31%
EBIT growth 5Y25.2%
EBIT Next Year53.07%
EBIT Next 3Y22.01%
EBIT Next 5Y31.97%
FCF growth 1Y207.18%
FCF growth 3YN/A
FCF growth 5Y65.81%
OCF growth 1Y747.82%
OCF growth 3Y98.54%
OCF growth 5Y50.8%