Livent Corporation (LTHM)
US53814L1089 - Common Stock
We assign a fundamental rating of 7 out of 10 to LTHM. LTHM was compared to 84 industry peers in the Chemicals industry. LTHM gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
LTHM had a positive operating cash flow in the past year.
Of the past 5 years LTHM 4 years were profitable.
In the past 5 years LTHM always reported a positive cash flow from operatings.
1.2 Ratios
LTHM's Return On Assets of 15.89% is amongst the best of the industry. LTHM outperforms 96.43% of its industry peers.
LTHM has a Return On Equity of 21.55%. This is amongst the best in the industry. LTHM outperforms 86.90% of its industry peers.
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
With an excellent Profit Margin value of 40.77%, LTHM belongs to the best of the industry, outperforming 98.81% of the companies in the same industry.
In the last couple of years the Profit Margin of LTHM has grown nicely.
LTHM has a Operating Margin of 51.57%. This is amongst the best in the industry. LTHM outperforms 100.00% of its industry peers.
LTHM's Operating Margin has improved in the last couple of years.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LTHM is creating value.
Compared to 1 year ago, LTHM has more shares outstanding
Compared to 5 years ago, LTHM has more shares outstanding
LTHM has a better debt/assets ratio than last year.
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.
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's Debt to FCF ratio of 6.03 is fine compared to the rest of the industry. LTHM outperforms 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.
LTHM's Current ratio of 3.46 is fine compared to the rest of the industry. LTHM outperforms 79.76% of its industry peers.
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.
LTHM's Quick ratio of 1.99 is fine compared to the rest of the industry. LTHM outperforms 75.00% of its industry peers.
| 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.
Measured over the past years, LTHM shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.22% on average per year.
The Revenue has grown by 28.38% in the past year. This is a very strong growth!
The Revenue has been growing by 18.54% on average over the past years. This is quite good.
EPS 1Y (TTM)82.24%
EPS 3Y50.23%
EPS 5Y36.22%
EPS growth Q2Q7.32%
Revenue 1Y (TTM)28.38%
Revenue growth 3Y27.93%
Revenue growth 5Y18.54%
Revenue growth 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.
The Revenue is expected to grow by 19.07% on average over the next years. This is quite good.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.47, the valuation of LTHM can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of LTHM indicates a rather cheap valuation: LTHM is cheaper than 83.33% of the companies listed in the same industry.
LTHM is valuated cheaply when we compare the Price/Earnings ratio to 24.84, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.03, which indicates a very decent valuation of LTHM.
Based on the Price/Forward Earnings ratio, LTHM is valued cheaply inside the industry as 86.90% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LTHM to the average of the S&P500 Index (21.35), we can say LTHM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 9.03 |
4.2 Price Multiples
80.95% of the companies in the same industry are more expensive than LTHM, based on the Enterprise Value to EBITDA ratio.
LTHM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 73.71 | ||
| EV/EBITDA | 6.15 |
4.3 Compensation for Growth
The 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%
5. Dividend
5.1 Amount
No dividends for LTHM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Livent Corporation
NYSE:LTHM (1/3/2024, 7:08:28 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.97B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 9.03 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.2
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.89% | ||
| ROE | 21.55% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 51.57% | ||
| PM (TTM) | 40.77% | ||
| GM | 58.78% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.46 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)82.24%
EPS 3Y50.23%
EPS 5Y
EPS growth Q2Q
EPS Next Y41.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)28.38%
Revenue growth 3Y27.93%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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OCF growth 3Y
OCF growth 5Y