LUXFER HOLDINGS PLC (LXFR) Stock Fundamental Analysis
NYSE:LXFR - New York Stock Exchange, Inc. - GB00BNK03D49 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to LXFR. LXFR was compared to 128 industry peers in the Machinery industry. Both the profitability and the financial health of LXFR get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on LXFR. Finally LXFR also has an excellent dividend rating. These ratings could make LXFR a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
In the past year LXFR was profitable.
LXFR had a positive operating cash flow in the past year.
LXFR had positive earnings in 4 of the past 5 years.
In the past 5 years LXFR always reported a positive cash flow from operatings.
1.2 Ratios
LXFR has a better Return On Assets (6.09%) than 60.94% of its industry peers.
LXFR has a Return On Equity (10.22%) which is comparable to the rest of the industry.
LXFR has a better Return On Invested Capital (9.23%) than 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LXFR is below the industry average of 10.71%.
The 3 year average ROIC (8.65%) for LXFR is below the current ROIC(9.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 10.22% | ||
| ROIC | 9.23% |
ROA(3y)3.64%
ROA(5y)4.96%
ROE(3y)6.82%
ROE(5y)9.35%
ROIC(3y)8.65%
ROIC(5y)9.23%
1.3 Margins
LXFR has a Profit Margin (6.02%) which is in line with its industry peers.
In the last couple of years the Profit Margin of LXFR has grown nicely.
The Operating Margin of LXFR (9.53%) is comparable to the rest of the industry.
LXFR's Operating Margin has declined in the last couple of years.
LXFR has a worse Gross Margin (22.46%) than 68.75% of its industry peers.
In the last couple of years the Gross Margin of LXFR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.53% | ||
| PM (TTM) | 6.02% | ||
| GM | 22.46% |
OM growth 3Y-4.62%
OM growth 5Y-4.2%
PM growth 3Y-16.25%
PM growth 5Y41.41%
GM growth 3Y-5.19%
GM growth 5Y-4.67%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LXFR is destroying value.
Compared to 1 year ago, LXFR has less shares outstanding
The number of shares outstanding for LXFR has been reduced compared to 5 years ago.
Compared to 1 year ago, LXFR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.13 indicates that LXFR is not in any danger for bankruptcy at the moment.
The Altman-Z score of LXFR (3.13) is comparable to the rest of the industry.
LXFR has a debt to FCF ratio of 1.49. This is a very positive value and a sign of high solvency as it would only need 1.49 years to pay back of all of its debts.
LXFR's Debt to FCF ratio of 1.49 is amongst the best of the industry. LXFR outperforms 80.47% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that LXFR is not too dependend on debt financing.
LXFR's Debt to Equity ratio of 0.10 is fine compared to the rest of the industry. LXFR outperforms 77.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.49 | ||
| Altman-Z | 3.13 |
ROIC/WACC0.94
WACC9.78%
2.3 Liquidity
LXFR has a Current Ratio of 1.65. This is a normal value and indicates that LXFR is financially healthy and should not expect problems in meeting its short term obligations.
LXFR has a worse Current ratio (1.65) than 67.97% of its industry peers.
LXFR has a Quick Ratio of 1.65. This is a bad value and indicates that LXFR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.83, LXFR is doing worse than 72.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
LXFR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 105.77%, which is quite impressive.
Measured over the past years, LXFR shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.92% on average per year.
LXFR shows a small growth in Revenue. In the last year, the Revenue has grown by 5.60%.
LXFR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.97% yearly.
EPS 1Y (TTM)105.77%
EPS 3Y-9.78%
EPS 5Y-7.92%
EPS Q2Q%25%
Revenue 1Y (TTM)5.6%
Revenue growth 3Y1.56%
Revenue growth 5Y0.97%
Sales Q2Q%4.31%
3.2 Future
Based on estimates for the next years, LXFR will show a small growth in Earnings Per Share. The EPS will grow by 6.23% on average per year.
LXFR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.80% yearly.
EPS Next Y-5.6%
EPS Next 2Y6.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.31%
Revenue Next 2Y3.8%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
LXFR is valuated reasonably with a Price/Earnings ratio of 11.40.
90.63% of the companies in the same industry are more expensive than LXFR, based on the Price/Earnings ratio.
LXFR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.48.
The Price/Forward Earnings ratio is 11.50, which indicates a very decent valuation of LXFR.
87.50% of the companies in the same industry are more expensive than LXFR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, LXFR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.4 | ||
| Fwd PE | 11.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LXFR is valued cheaply inside the industry as 90.63% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, LXFR is valued cheaply inside the industry as 95.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.22 | ||
| EV/EBITDA | 6.92 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.23%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.33%, LXFR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.91, LXFR pays a better dividend. On top of this LXFR pays more dividend than 96.88% of the companies listed in the same industry.
LXFR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
5.2 History
The dividend of LXFR has a limited annual growth rate of 1.53%.
LXFR has been paying a dividend for at least 10 years, so it has a reliable track record.
LXFR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.53%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
LXFR pays out 57.61% of its income as dividend. This is a bit on the high side, but may be sustainable.
LXFR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.61%
EPS Next 2Y6.23%
EPS Next 3YN/A
12.2
+0.2 (+1.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.53%
Inst Owner Change-0.7%
Ins Owners1.29%
Ins Owner Change6.21%
Market Cap326.47M
Analysts43.33
Price Target17.34 (42.13%)
Short Float %2.06%
Short Ratio4.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
Yearly Dividend0.52
Dividend Growth(5Y)1.53%
DP57.61%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)36.97%
Min EPS beat(2)26.87%
Max EPS beat(2)47.06%
EPS beat(4)4
Avg EPS beat(4)36.44%
Min EPS beat(4)24.78%
Max EPS beat(4)47.06%
EPS beat(8)6
Avg EPS beat(8)70.86%
EPS beat(12)7
Avg EPS beat(12)45.44%
EPS beat(16)10
Avg EPS beat(16)36.45%
Revenue beat(2)2
Avg Revenue beat(2)6.57%
Min Revenue beat(2)3.83%
Max Revenue beat(2)9.31%
Revenue beat(4)4
Avg Revenue beat(4)10%
Min Revenue beat(4)3.83%
Max Revenue beat(4)13.58%
Revenue beat(8)6
Avg Revenue beat(8)5.88%
Revenue beat(12)7
Avg Revenue beat(12)4.15%
Revenue beat(16)9
Avg Revenue beat(16)3.34%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-13.04%
EPS NQ rev (3m)-23.08%
EPS NY rev (1m)-13%
EPS NY rev (3m)-13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.4 | ||
| Fwd PE | 11.5 | ||
| P/S | 0.81 | ||
| P/FCF | 9.22 | ||
| P/OCF | 7.24 | ||
| P/B | 1.37 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 6.92 |
EPS(TTM)1.07
EY8.77%
EPS(NY)1.06
Fwd EY8.7%
FCF(TTM)1.32
FCFY10.84%
OCF(TTM)1.69
OCFY13.81%
SpS15.09
BVpS8.88
TBVpS5.83
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 10.22% | ||
| ROCE | 13.36% | ||
| ROIC | 9.23% | ||
| ROICexc | 9.37% | ||
| ROICexgc | 13.16% | ||
| OM | 9.53% | ||
| PM (TTM) | 6.02% | ||
| GM | 22.46% | ||
| FCFM | 8.77% |
ROA(3y)3.64%
ROA(5y)4.96%
ROE(3y)6.82%
ROE(5y)9.35%
ROIC(3y)8.65%
ROIC(5y)9.23%
ROICexc(3y)8.87%
ROICexc(5y)9.42%
ROICexgc(3y)12.19%
ROICexgc(5y)13.16%
ROCE(3y)12.53%
ROCE(5y)13.37%
ROICexcg growth 3Y-4.86%
ROICexcg growth 5Y-1.98%
ROICexc growth 3Y-3.81%
ROICexc growth 5Y-2.08%
OM growth 3Y-4.62%
OM growth 5Y-4.2%
PM growth 3Y-16.25%
PM growth 5Y41.41%
GM growth 3Y-5.19%
GM growth 5Y-4.67%
F-Score8
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.49 | ||
| Debt/EBITDA | 0.45 | ||
| Cap/Depr | 65.1% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 8.37 | ||
| Cash Conversion | 84.46% | ||
| Profit Quality | 145.68% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 3.13 |
F-Score8
WACC9.78%
ROIC/WACC0.94
Cap/Depr(3y)71.63%
Cap/Depr(5y)66.68%
Cap/Sales(3y)2.34%
Cap/Sales(5y)2.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)105.77%
EPS 3Y-9.78%
EPS 5Y-7.92%
EPS Q2Q%25%
EPS Next Y-5.6%
EPS Next 2Y6.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.6%
Revenue growth 3Y1.56%
Revenue growth 5Y0.97%
Sales Q2Q%4.31%
Revenue Next Year4.31%
Revenue Next 2Y3.8%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y51.57%
EBIT growth 3Y-3.13%
EBIT growth 5Y-3.27%
EBIT Next Year37.6%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y216.07%
FCF growth 3Y33.45%
FCF growth 5YN/A
OCF growth 1Y109.77%
OCF growth 3Y25.1%
OCF growth 5Y54.52%