Livent Corporation
Livent Corporation Fundamental Analysis
Livent Corporation (LTHM) shows strong financial fundamentals with a PE ratio of 12.14, profit margin of 33.63%, and ROE of 24.44%. The company generates $0.7B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze LTHM's fundamental strength across five key dimensions:
Efficiency Score
ExcellentLTHM demonstrates superior asset utilization.
Valuation Score
ExcellentLTHM trades at attractive valuation levels.
Growth Score
ModerateLTHM shows steady but slowing expansion.
Financial Health Score
ExcellentLTHM maintains a strong and stable balance sheet.
Profitability Score
ExcellentLTHM achieves industry-leading margins.
Key Financial Metrics
Is LTHM Expensive or Cheap?
P/E Ratio
LTHM trades at 12.14 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LTHM's PEG of 0.12 indicates potential undervaluation.
Price to Book
The market values Livent Corporation at 2.30 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.49 times EBITDA. This is generally considered low.
How Well Does LTHM Make Money?
Net Profit Margin
For every $100 in sales, Livent Corporation keeps $33.63 as profit after all expenses.
Operating Margin
Core operations generate 38.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.44 in profit for every $100 of shareholder equity.
ROA
Livent Corporation generates $13.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Livent Corporation generates strong operating cash flow of $406.81M, reflecting robust business health.
Free Cash Flow
Livent Corporation generates strong free cash flow of $105.39M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.59 in free cash annually.
FCF Yield
LTHM converts 3.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How LTHM Stacks Against Its Sector Peers
| Metric | LTHM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.14 | 27.41 | Better (Cheaper) |
| ROE | 24.44% | 859.00% | Weak |
| Net Margin | 33.63% | -120873.00% (disorted) | Strong |
| Debt/Equity | 0.17 | 0.51 | Strong (Low Leverage) |
| Current Ratio | 3.66 | 4.80 | Strong Liquidity |
| ROA | 13.19% | -3590.00% (disorted) | Strong |
LTHM outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Livent Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Commodity, Value
EPS CAGR
N/A
Industry Style: Cyclical, Commodity, Value
FCF CAGR
N/A
Industry Style: Cyclical, Commodity, Value