What Are the Fundamentals of Livent (LTHM)?

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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