LUXFER HOLDINGS PLC (LXFR)
GB00BNK03D49 - Common Stock
LXFR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. While LXFR seems to be doing ok healthwise, there are quite some concerns on its profitability. LXFR has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Of the past 5 years LXFR 4 years were profitable.
LXFR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LXFR has a worse Return On Assets (-0.51%) than 68.99% of its industry peers.
The Return On Equity of LXFR (-0.89%) is worse than 68.22% of its industry peers.
LXFR's Return On Invested Capital of 5.92% is in line compared to the rest of the industry. LXFR outperforms 45.74% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LXFR is in line with the industry average of 10.77%.
The 3 year average ROIC (10.20%) for LXFR is well above the current ROIC(5.92%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.51% | ||
| ROE | -0.89% | ||
| ROIC | 5.92% |
ROA(3y)4.73%
ROA(5y)4.15%
ROE(3y)8.79%
ROE(5y)8.03%
ROIC(3y)10.2%
ROIC(5y)10.63%
1.3 Margins
With a Operating Margin value of 5.75%, LXFR perfoms like the industry average, outperforming 44.19% 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 18.91%, LXFR is doing worse than 71.32% of the companies in the same industry.
LXFR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.75% | ||
| PM (TTM) | N/A | ||
| GM | 18.91% |
OM growth 3Y-20.93%
OM growth 5Y-16.51%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.77%
GM growth 5Y-8.4%
2. Health
2.1 Basic Checks
LXFR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for LXFR remains at a similar level compared to 1 year ago.
LXFR has more 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 2.99 indicates that LXFR is not in any danger for bankruptcy at the moment.
The Altman-Z score of LXFR (2.99) is comparable to the rest of the industry.
The Debt to FCF ratio of LXFR is 4.27, which is a neutral value as it means it would take LXFR, 4.27 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.27, LXFR perfoms like the industry average, outperforming 58.91% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that LXFR is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.32, LXFR is doing good in the industry, outperforming 62.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.27 | ||
| Altman-Z | 2.99 |
ROIC/WACC0.73
WACC8.15%
2.3 Liquidity
A Current Ratio of 2.60 indicates that LXFR has no problem at all paying its short term obligations.
LXFR has a better Current ratio (2.60) than 67.44% of its industry peers.
LXFR has a Quick Ratio of 1.13. This is a normal value and indicates that LXFR is financially healthy and should not expect problems in meeting its short term obligations.
LXFR's Quick ratio of 1.13 is in line compared to the rest of the industry. LXFR outperforms 44.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
LXFR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -55.22%.
The earnings per share for LXFR have been decreasing by -19.27% on average. This is quite bad
Looking at the last year, LXFR shows a decrease in Revenue. The Revenue has decreased by -4.35% in the last year.
Measured over the past years, LXFR shows a small growth in Revenue. The Revenue has been growing by 0.15% on average per year.
EPS 1Y (TTM)-55.22%
EPS 3Y-15.37%
EPS 5Y-19.27%
EPS growth Q2Q-70.97%
Revenue 1Y (TTM)-4.35%
Revenue growth 3Y7.63%
Revenue growth 5Y0.15%
Revenue growth Q2Q-17.82%
3.2 Future
Based on estimates for the next years, LXFR will show a very strong growth in Earnings Per Share. The EPS will grow by 36.12% on average per year.
The Revenue is expected to decrease by -2.28% on average over the next years.
EPS Next Y25.8%
EPS Next 2Y36.12%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-7.47%
Revenue Next 2Y-2.28%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
LXFR is valuated rather expensively with a Price/Earnings ratio of 17.63.
LXFR's Price/Earnings ratio is a bit cheaper when compared to the industry. LXFR is cheaper than 71.32% of the companies in the same industry.
LXFR is valuated rather cheaply when we compare the Price/Earnings ratio to 24.55, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.02, the valuation of LXFR can be described as correct.
83.72% of the companies in the same industry are more expensive than LXFR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LXFR to the average of the S&P500 Index (20.92), we can say LXFR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.63 | ||
| Fwd PE | 14.02 |
4.2 Price Multiples
78.29% of the companies in the same industry are more expensive than LXFR, based on the Enterprise Value to EBITDA ratio.
79.07% of the companies in the same industry are more expensive than LXFR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.8 | ||
| EV/EBITDA | 9.12 |
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.
LXFR's earnings are expected to grow with 36.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.68
PEG (5Y)N/A
EPS Next 2Y36.12%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LXFR has a Yearly Dividend Yield of 5.23%, which is a nice return.
Compared to an average industry Dividend Yield of 1.71, LXFR pays a better dividend. On top of this LXFR pays more dividend than 98.45% 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 | 5.23% |
5.2 History
The dividend of LXFR decreases each year by -0.42%.
LXFR has paid a dividend for at least 10 years, which is a reliable track record.
As LXFR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-0.42%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
LXFR has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-736.84%
EPS Next 2Y36.12%
EPS Next 3YN/A
LUXFER HOLDINGS PLC
NYSE:LXFR (5/1/2024, 7:04:00 PM)
After market: 10.5 -0.08 (-0.76%)10.58
+0.95 (+9.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap283.86M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.63 | ||
| Fwd PE | 14.02 | ||
| 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)0.68
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.51% | ||
| ROE | -0.89% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.75% | ||
| PM (TTM) | N/A | ||
| GM | 18.91% | ||
| 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 Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.13 | ||
| 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)-55.22%
EPS 3Y-15.37%
EPS 5Y
EPS growth Q2Q
EPS Next Y25.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.35%
Revenue growth 3Y7.63%
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
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y