LUXFER HOLDINGS PLC (LXFR) Stock Fundamental Analysis
NYSE:LXFR - New York Stock Exchange, Inc. - GB00BNK03D49 - Common Stock - Currency: USD
Taking everything into account, LXFR scores 6 out of 10 in our fundamental rating. LXFR was compared to 128 industry peers in the Machinery industry. LXFR has an excellent financial health rating, but there are some minor concerns on its profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on LXFR. 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.
In the past year LXFR had a positive cash flow from operations.
LXFR had positive earnings in 4 of the past 5 years.
LXFR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.50%, LXFR is doing good in the industry, outperforming 60.94% of the companies in the same industry.
LXFR has a Return On Equity (9.35%) which is comparable to the rest of the industry.
LXFR has a Return On Invested Capital of 9.91%. This is in the better half of the industry: LXFR outperforms 68.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LXFR is in line with the industry average of 10.30%.
The last Return On Invested Capital (9.91%) for LXFR is above the 3 year average (8.65%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 5.31%, LXFR perfoms like the industry average, outperforming 50.78% of the companies in the same industry.
In the last couple of years the Profit Margin of LXFR has grown nicely.
LXFR has a Operating Margin of 10.71%. This is comparable to the rest of the industry: LXFR outperforms 57.03% of its industry peers.
In the last couple of years the Operating Margin of LXFR has declined.
The Gross Margin of LXFR (22.20%) is worse than 67.97% of its industry peers.
In the last couple of years the Gross Margin of LXFR has declined.
| 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
Compared to 5 years ago, LXFR has less shares outstanding
Compared to 1 year ago, LXFR has an improved debt to assets ratio.
2.2 Solvency
LXFR has an Altman-Z score of 3.27. This indicates that LXFR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LXFR (3.27) is comparable to the rest of the industry.
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.
The Debt to FCF ratio of LXFR (1.09) is better than 84.38% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that LXFR is not too dependend on debt financing.
LXFR has a better Debt to Equity ratio (0.20) than 72.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.09 | ||
| Altman-Z | 3.27 |
ROIC/WACC0.98
WACC10.07%
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.
LXFR has a Current ratio (2.02) which is comparable to the rest of the 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.
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 1.63%.
Measured over the past years, LXFR shows a small growth in Revenue. The Revenue has been growing by 0.97% on average per year.
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
The Earnings Per Share is expected to grow by 13.16% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.80% on average over the next years.
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
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
A Price/Earnings ratio of 11.29 indicates a reasonable valuation of LXFR.
LXFR's Price/Earnings ratio is rather cheap when compared to the industry. LXFR is cheaper than 90.63% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.17, LXFR is valued rather cheaply.
A Price/Forward Earnings ratio of 9.47 indicates a reasonable valuation of LXFR.
LXFR's Price/Forward Earnings ratio is rather cheap when compared to the industry. LXFR is cheaper than 87.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, LXFR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.29 | ||
| Fwd PE | 9.47 |
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 91.41% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LXFR is valued cheaper than 96.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.21 | ||
| EV/EBITDA | 6.26 |
4.3 Compensation for Growth
LXFR's 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)1.33
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.
Compared to an average industry Dividend Yield of 1.90, LXFR pays a better dividend. On top of this LXFR pays more dividend than 96.09% 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 2.40.
| 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
11.4
-0.34 (-2.9%)
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 Cap305.18M
Analysts43.33
Price Target17.34 (52.11%)
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 | 11.29 | ||
| Fwd PE | 9.47 | ||
| P/S | 0.76 | ||
| P/FCF | 7.21 | ||
| P/OCF | 5.78 | ||
| P/B | 1.35 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 6.26 |
EPS(TTM)1.01
EY8.86%
EPS(NY)1.2
Fwd EY10.56%
FCF(TTM)1.58
FCFY13.86%
OCF(TTM)1.97
OCFY17.3%
SpS14.92
BVpS8.47
TBVpS5.5
PEG (NY)1.33
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 | 3.27 |
F-Score8
WACC10.07%
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%