Shares of Mid-cap industrials company Livent moved -0.2% this morning, and are now trading at $24.84 per share. The average analyst target price for the stock is $32.79.
Livent Corporation manufactures and sells performance lithium compounds primarily used in lithium-based batteries, specialty polymers, and chemical synthesis applications in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific.
Based on its trailing earning per share of 1.6, Livent has a trailing 12 month Price to Earnings (P/E) ratio of 15.5 LTHM has a forward P/E ratio of 10.7 based on its earnings guidance.
The company has a price to earnings growth (PEG) ratio of 12.38. A number between 0 and 1 could mean that the market is undervaluing Livent's estimated growth potential
The Company May Be Profitable, but Its Balance Sheet Is Highly Leveraged
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (k) | $388,400 | $288,200 | $420,400 | $813,200 |
| Gross Margins | 29.6% | 12.8% | 21.0% | 48.7% |
| Operating Margins | 18.3% | -4.0% | 8.4% | 41.4% |
| Net Margins | 12.92% | -6.56% | 0.14% | 33.63% |
| Net Income (k) | $50,200 | -$18,900 | $600 | $273,500 |
| Net Interest Income | $0 | -$3,700 | -$300 | $0 |
| Depreciation & Amort. | -$20,900 | -$25,000 | -$25,100 | -$27,700 |
| Earnings Per Share | $0.34 | -$0.11 | $0.0 | $1.6 |
| EPS Growth | n/a | -132.35% | 100.0% | n/a |
| Diluted Shares (k) | 146,400 | 146,200 | 184,300 | 179,688 |
| Free Cash Flow (k) | $58,100 | $6,300 | $26,400 | $454,700 |
| Capital Expenditures | -$184,300 | -$124,000 | -$131,900 | -$336,900 |
| Net Current Assets (k) | -$43,600 | -$121,200 | -$7,800 | -$87,200 |
| Current Ratio | 2.28 | 3.04 | 3.04 | 3.66 |
| Long Term Debt (k) | $154,600 | $236,700 | $240,400 | $241,900 |
| Net Debt / EBITDA | 1.78 | 68.64 | 2.61 | 0.15 |
Livent has growing revenues and increasing reinvestment in the business, exceptional EPS growth, and an excellent current ratio. The company also benefits from wider gross margins than its peer group, decent operating margins with a positive growth rate, and generally positive cash flows. However, the firm has a highly leveraged balance sheet.
