LUXFER HOLDINGS PLC (LXFR) Stock Fundamental Analysis
NYSE:LXFR - New York Stock Exchange, Inc. - GB00BNK03D49 - Common Stock - Currency: USD
LXFR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. LXFR is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. LXFR scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally LXFR also has an excellent dividend rating. With these ratings, LXFR could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
LXFR had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 5.50%, LXFR is in the better half of the industry, outperforming 60.94% of the companies in the same industry.
LXFR has a Return On Equity (9.35%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 9.91%, LXFR is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LXFR is in line with the industry average of 10.30%.
The 3 year average ROIC (8.65%) for LXFR is below the current ROIC(9.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 9.35% | ||
| ROIC | 9.91% |
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's Profit Margin of 5.31% is in line compared to the rest of the industry. LXFR outperforms 50.78% of its industry peers.
In the last couple of years the Profit Margin of LXFR has grown nicely.
With a Operating Margin value of 10.71%, LXFR perfoms like the industry average, outperforming 57.03% of the companies in the same industry.
LXFR's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 22.20%, LXFR is doing worse than 67.97% of the companies in the same industry.
LXFR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.71% | ||
| PM (TTM) | 5.31% | ||
| GM | 22.2% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LXFR is destroying value.
Compared to 1 year ago, LXFR has less shares outstanding
LXFR has less shares outstanding than it did 5 years ago.
LXFR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.22 indicates that LXFR is not in any danger for bankruptcy at the moment.
LXFR's Altman-Z score of 3.22 is in line compared to the rest of the industry. LXFR outperforms 55.47% of its industry peers.
LXFR has a debt to FCF ratio of 1.09. This is a very positive value and a sign of high solvency as it would only need 1.09 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.09, LXFR belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that LXFR is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.20, LXFR is doing good in the industry, outperforming 72.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.09 | ||
| Altman-Z | 3.22 |
ROIC/WACC0.98
WACC10.1%
2.3 Liquidity
LXFR has a Current Ratio of 2.02. This indicates that LXFR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.02, LXFR is in line with its industry, outperforming 49.22% of the companies in the same industry.
A Quick Ratio of 1.03 indicates that LXFR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.03, LXFR is doing worse than 63.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
LXFR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 83.64%, which is quite impressive.
LXFR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.92% yearly.
The Revenue has been growing slightly by 1.63% in the past year.
The Revenue has been growing slightly by 0.97% on average over the past years.
EPS 1Y (TTM)83.64%
EPS 3Y-9.78%
EPS 5Y-7.92%
EPS Q2Q%46.67%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.56%
Revenue growth 5Y0.97%
Sales Q2Q%8.5%
3.2 Future
Based on estimates for the next years, LXFR will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.16% on average per year.
Based on estimates for the next years, LXFR will show a small growth in Revenue. The Revenue will grow by 3.80% on average per year.
EPS Next Y8.51%
EPS Next 2Y13.16%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 11.62, the valuation of LXFR can be described as reasonable.
Based on the Price/Earnings ratio, LXFR is valued cheaply inside the industry as 90.63% of the companies are valued more expensively.
LXFR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.35.
LXFR is valuated reasonably with a Price/Forward Earnings ratio of 9.75.
Based on the Price/Forward Earnings ratio, LXFR is valued cheaply inside the industry as 88.28% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.20. LXFR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 9.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LXFR indicates a rather cheap valuation: LXFR is cheaper than 92.19% of the companies listed in the same industry.
LXFR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LXFR is cheaper than 96.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.43 | ||
| EV/EBITDA | 6 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as LXFR's earnings are expected to grow with 13.16% in the coming years.
PEG (NY)1.37
PEG (5Y)N/A
EPS Next 2Y13.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.47%, LXFR is a good candidate for dividend investing.
LXFR's Dividend Yield is rather good when compared to the industry average which is at 1.90. LXFR pays more dividend than 96.09% of the companies in the same industry.
LXFR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
5.2 History
The dividend of LXFR has a limited annual growth rate of 1.53%.
LXFR has paid a dividend for at least 10 years, which is a reliable track record.
LXFR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.53%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
66.04% of the earnings are spent on dividend by LXFR. This is not a sustainable payout ratio.
The dividend of LXFR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.04%
EPS Next 2Y13.16%
EPS Next 3YN/A
11.74
+0.56 (+5.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners92.3%
Inst Owner Change1.92%
Ins Owners1.1%
Ins Owner Change3.5%
Market Cap314.28M
Analysts43.33
Price Target17.34 (47.7%)
Short Float %0.88%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
Yearly Dividend0.52
Dividend Growth(5Y)1.53%
DP66.04%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.83%
Min EPS beat(2)24.78%
Max EPS beat(2)26.87%
EPS beat(4)3
Avg EPS beat(4)24.19%
Min EPS beat(4)-1.96%
Max EPS beat(4)47.06%
EPS beat(8)5
Avg EPS beat(8)63.5%
EPS beat(12)7
Avg EPS beat(12)42.1%
EPS beat(16)10
Avg EPS beat(16)34.78%
Revenue beat(2)2
Avg Revenue beat(2)11.29%
Min Revenue beat(2)9.31%
Max Revenue beat(2)13.27%
Revenue beat(4)3
Avg Revenue beat(4)8.55%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)13.58%
Revenue beat(8)5
Avg Revenue beat(8)5.09%
Revenue beat(12)7
Avg Revenue beat(12)3.9%
Revenue beat(16)9
Avg Revenue beat(16)3.32%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-14.81%
EPS NQ rev (3m)-20.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.76%
Revenue NQ rev (1m)-4.38%
Revenue NQ rev (3m)-5.3%
Revenue NY rev (1m)1.52%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 9.75 | ||
| P/S | 0.79 | ||
| P/FCF | 7.43 | ||
| P/OCF | 5.95 | ||
| P/B | 1.39 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 6 |
EPS(TTM)1.01
EY8.6%
EPS(NY)1.2
Fwd EY10.25%
FCF(TTM)1.58
FCFY13.46%
OCF(TTM)1.97
OCFY16.8%
SpS14.92
BVpS8.47
TBVpS5.5
PEG (NY)1.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 9.35% | ||
| ROCE | 14.35% | ||
| ROIC | 9.91% | ||
| ROICexc | 10.05% | ||
| ROICexgc | 13.77% | ||
| OM | 10.71% | ||
| PM (TTM) | 5.31% | ||
| GM | 22.2% | ||
| FCFM | 10.59% |
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 Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.09 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 74.47% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 8.23 | ||
| Cash Conversion | 92.79% | ||
| Profit Quality | 199.53% | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 3.22 |
F-Score8
WACC10.1%
ROIC/WACC0.98
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)83.64%
EPS 3Y-9.78%
EPS 5Y-7.92%
EPS Q2Q%46.67%
EPS Next Y8.51%
EPS Next 2Y13.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.56%
Revenue growth 5Y0.97%
Sales Q2Q%8.5%
Revenue Next Year4.31%
Revenue Next 2Y3.8%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y97.24%
EBIT growth 3Y-3.13%
EBIT growth 5Y-3.27%
EBIT Next Year30.92%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y2720%
FCF growth 3Y33.45%
FCF growth 5YN/A
OCF growth 1Y388.89%
OCF growth 3Y25.1%
OCF growth 5Y54.52%