Lantheus logged a -1.8% change during today's morning session, and is now trading at a price of $114.68 per share.
Lantheus returned gains of 36.5% last year, with its stock price reaching a high of $126.89 and a low of $50.2. Over the same period, the stock outperformed the S&P 500 index by 14.7%. More recently, the company's 50-day average price was $86.87. Lantheus Holdings, Inc. develops, manufactures, and commercializes diagnostic and therapeutic products that assist clinicians in the diagnosis and treatment of heart, cancer, and other diseases worldwide. Based in Bedford, MA, the Mid-Cap Health Care company has 834 full time employees. Lantheus has not offered a dividend during the last year.
Strong Revenue Growth but Similar Gross Margins to the Industry Average of 61.0%:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $343,374 | $347,337 | $339,410 | $425,208 | $935,061 | $1,296,429 |
| Gross Margins | 51% | 50% | 41% | 44% | 62% | 55% |
| Net Margins | 12% | 9% | -4% | -17% | 3% | 25% |
| Net Income (k) | $40,518 | $31,667 | -$13,473 | -$71,279 | $28,067 | $326,661 |
| Net Interest Expense (k) | $17,405 | $13,617 | $9,479 | $7,752 | $7,185 | $20,019 |
| Depreciation & Amort. (k) | $13,929 | $13,379 | $24,689 | $42,288 | $47,929 | $60,043 |
| Diluted Shares (k) | 39,501 | 40,113 | 54,134 | 67,486 | 70,671 | 70,239 |
| Earnings Per Share | $1.03 | $0.79 | -$0.25 | -$1.06 | $0.4 | $4.65 |
| EPS Growth | n/a | -23.3% | -131.65% | -324.0% | 137.74% | 1062.5% |
| Avg. Price | $16.17 | $22.58 | $13.99 | $23.52 | $50.82 | $114.68 |
| P/E Ratio | 15.25 | 27.88 | -55.96 | -22.19 | 123.95 | 23.94 |
| Free Cash Flow (k) | $41,061 | $58,323 | $16,396 | $53,916 | $263,434 | $258,705 |
| EV / EBITDA | 9.76 | 15.09 | 34.58 | -89.71 | 42.63 | 17.88 |
| Total Debt (k) | $266,459 | $204,213 | $239,101 | $186,405 | $558,420 | $562,493 |
| Net Debt / EBITDA | 1.95 | 1.71 | 7.78 | -4.74 | 1.7 | -0.36 |
| Current Ratio | 3.7 | 2.62 | 2.29 | 2.61 | 2.74 | 5.8 |
Lantheus benefits from rapidly growing revenues and increasing reinvestment in the business, exceptional EPS growth, and generally positive cash flows. The company's financial statements show an excellent current ratio of 5.8 and healthy leverage levels. Furthermore, Lantheus has similar gross margins to its peers.
a Very Low P/E Ratio but Trades Above Its Graham Number:
Lantheus has a trailing twelve month P/E ratio of 13.2, compared to an average of 27.61 for the Health Care sector. Based on its EPS guidance of $7.56, the company has a forward P/E ratio of 11.5. According to the 32.9% compound average growth rate of Lantheus's historical and projected earnings per share, the company's PEG ratio is 0.4. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 17.5%. On this basis, the company's PEG ratio is 0.76. This suggests that its shares are undervalued. In contrast, Lantheus is likely overvalued compared to the book value of its equity, since its P/B ratio of 8.4 is higher than the sector average of 3.69. The company's shares are currently trading 229.0% below their Graham number. Ultimately, Lantheus's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
Analysts Give Lantheus an Average Rating of Buy:
The 10 analysts following Lantheus have set target prices ranging from $105.0 to $165.0 per share, for an average of $136.4 with a buy rating. The company is trading -15.9% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Lantheus has an above average percentage of its shares sold short because 8.3% of the company's shares are sold short. Institutions own 100.1% of the company's shares, and the insider ownership rate stands at 2.58%, suggesting a decent amount of insider shareholders. The largest shareholder is Blackrock Inc., whose 12% stake in the company is worth $967,017,886.
