Luxfer Holdings PLC
Luxfer Holdings PLC Fundamental Analysis
Luxfer Holdings PLC (LXFR) shows weak financial fundamentals with a PE ratio of 29.20, profit margin of 3.60%, and ROE of 6.25%. The company generates $0.4B in annual revenue with weak year-over-year growth of -3.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LXFR's fundamental strength across five key dimensions:
Efficiency Score
WeakLXFR struggles to generate sufficient returns from assets.
Valuation Score
ModerateLXFR shows balanced valuation metrics.
Growth Score
ModerateLXFR shows steady but slowing expansion.
Financial Health Score
ExcellentLXFR maintains a strong and stable balance sheet.
Profitability Score
WeakLXFR struggles to sustain strong margins.
Key Financial Metrics
Is LXFR Expensive or Cheap?
P/E Ratio
LXFR trades at 29.20 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LXFR's PEG of -0.72 indicates potential undervaluation.
Price to Book
The market values Luxfer Holdings PLC at 1.80 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.52 times EBITDA. This is generally considered low.
How Well Does LXFR Make Money?
Net Profit Margin
For every $100 in sales, Luxfer Holdings PLC keeps $3.60 as profit after all expenses.
Operating Margin
Core operations generate 6.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.25 in profit for every $100 of shareholder equity.
ROA
Luxfer Holdings PLC generates $3.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Luxfer Holdings PLC produces operating cash flow of $44.15M, showing steady but balanced cash generation.
Free Cash Flow
Luxfer Holdings PLC produces free cash flow of $36.53M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.37 in free cash annually.
FCF Yield
LXFR converts 8.76% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.72
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.05
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.24
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How LXFR Stacks Against Its Sector Peers
| Metric | LXFR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.20 | 26.76 | Neutral |
| ROE | 6.25% | 1300.00% | Weak |
| Net Margin | 3.60% | -29570.00% (disorted) | Weak |
| Debt/Equity | 0.24 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.66 | 10.68 | Neutral |
| ROA | 3.79% | -1545134.00% (disorted) | Weak |
LXFR outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Luxfer Holdings PLC's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-10.05%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
504.20%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
796.84%
Industry Style: Cyclical, Value, Infrastructure
High Growth