NYSE:LXFR

Stock Analysis Report

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Executive Summary

Luxfer Holdings PLC, a materials technology company, designs, manufactures, and supplies high-performance materials, components, and high-pressure gas cylinders for transportation, defense and emergency response, healthcare, and general industrial end-market applications.


Snowflake Analysis

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Luxfer Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LXFR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.5%

LXFR

6.2%

US Machinery

3.0%

US Market


1 Year Return

-42.4%

LXFR

-0.6%

US Machinery

9.9%

US Market

Return vs Industry: LXFR underperformed the US Machinery industry which returned -0.6% over the past year.

Return vs Market: LXFR underperformed the US Market which returned 9.9% over the past year.


Shareholder returns

LXFRIndustryMarket
7 Day-1.5%6.2%3.0%
30 Day8.2%9.1%8.2%
90 Day-8.5%-6.1%0.4%
1 Year-40.7%-42.4%1.4%-0.6%12.4%9.9%
3 Yearn/a9.3%2.2%31.0%22.3%
5 Yearn/a40.9%24.0%58.1%40.3%

Price Volatility Vs. Market

How volatile is Luxfer Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Luxfer Holdings undervalued compared to its fair value and its price relative to the market?

29.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LXFR ($13.99) is trading above our estimate of fair value ($12.75)

Significantly Below Fair Value: LXFR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LXFR is poor value based on its PE Ratio (29.3x) compared to the Machinery industry average (20x).

PE vs Market: LXFR is poor value based on its PE Ratio (29.3x) compared to the US market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: LXFR is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: LXFR is overvalued based on its PB Ratio (2.3x) compared to the US Machinery industry average (2x).


Next Steps

Future Growth

How is Luxfer Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

67.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LXFR's forecast earnings growth (67.5% per year) is above the savings rate (2.2%).

Earnings vs Market: LXFR's earnings (67.5% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LXFR's revenue (4% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: LXFR's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LXFR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Luxfer Holdings performed over the past 5 years?

-14.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LXFR has a large one-off loss of $23.4M impacting its March 29 2020 financial results.

Growing Profit Margin: LXFR's current net profit margins (3.1%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: LXFR's earnings have declined by -14.9% per year over the past 5 years.

Accelerating Growth: LXFR's earnings growth over the past year (14.4%) exceeds its 5-year average (-14.9% per year).

Earnings vs Industry: LXFR earnings growth over the past year (14.4%) exceeded the Machinery industry -5.7%.


Return on Equity

High ROE: LXFR's Return on Equity (7.7%) is considered low.


Next Steps

Financial Health

How is Luxfer Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: LXFR's short term assets ($189.0M) exceed its short term liabilities ($69.2M).

Long Term Liabilities: LXFR's short term assets ($189.0M) exceed its long term liabilities ($153.5M).


Debt to Equity History and Analysis

Debt Level: LXFR's debt to equity ratio (64.1%) is considered high.

Reducing Debt: LXFR's debt to equity ratio has reduced from 76.2% to 64.1% over the past 5 years.

Debt Coverage: LXFR's debt is not well covered by operating cash flow (8.4%).

Interest Coverage: LXFR's interest payments on its debt are well covered by EBIT (9.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Luxfer Holdings's current dividend yield, its reliability and sustainability?

3.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LXFR's dividend (3.57%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: LXFR's dividend (3.57%) is low compared to the top 25% of dividend payers in the US market (4.54%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, LXFR has been paying a dividend for less than 10 years.

Growing Dividend: LXFR has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (104.5%), LXFR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Alok Maskara (48yo)

2.92yrs

Tenure

US$2,230,190

Compensation

Mr. Alok Maskara has been the Chief Executive Officer of Luxfer Holdings PLC since 2017. Mr. Maskara served as the President of Technical Solutions Global Business Unit at Pentair plc since 2014 until Febr ...


CEO Compensation Analysis

Compensation vs Market: Alok's total compensation ($USD2.23M) is about average for companies of similar size in the US market ($USD2.21M).

Compensation vs Earnings: Alok's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Alok Maskara
CEO & Director2.92yrsUS$2.23m0.68% $2.6m
Heather Harding
Chief Financial Officer2.42yrsUS$727.53k0.12% $477.0k
Andrew William Butcher
President of Luxfer Gas Cylinders6.17yrsUS$737.88k0.35% $1.4m
Graham Wardlow
Managing Director of Luxfer MEL Technologies2.67yrsUS$508.44k0.096% $369.2k
James Gardella
President of Luxfer Magtech2.92yrsUS$595.13k0.20% $769.6k
Jeffrey Moorefield
Vice President of Operations1.25yrsno datano data
Douglas Fox
Director of Investor Relationsno datano datano data
Megan Glise
Associate General Counsel1.33yrsno data0.0011% $4.1k
Mark Chivers
Managing Director of Luxfer Superform2.25yrsno data0.012% $44.7k
Stephen M. Webster
Corporate Controller3.75yrsno data0.022% $86.6k

2.7yrs

Average Tenure

50yo

Average Age

Experienced Management: LXFR's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alok Maskara
CEO & Director2.92yrsUS$2.23m0.68% $2.6m
Richard Hipple
Independent Non-Executive Director1.58yrsUS$82.00k0.022% $84.6k
Clive Snowdon
Independent Non-Executive Director3.92yrsUS$125.34k0.023% $90.2k
David Landless
Independent Chairman of the Board1.08yrsUS$157.71k0.036% $138.5k
Allisha Elliott
Non-Executive Independent Director1.25yrsUS$67.49kno data
Lisa Trimberger
Independent Non-Executive Director0.75yrUS$27.33k0.018% $69.9k

1.4yrs

Average Tenure

59yo

Average Age

Experienced Board: LXFR's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LXFR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Luxfer Holdings PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Luxfer Holdings PLC
  • Ticker: LXFR
  • Exchange: NYSE
  • Founded: 1898
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$385.390m
  • Shares outstanding: 27.55m
  • Website: https://www.luxfer.com

Number of Employees


Location

  • Luxfer Holdings PLC
  • Lumns Lane
  • Manchester
  • Greater Manchester
  • M27 8LN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LX4ADB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2017
LXFRNYSE (New York Stock Exchange)YesOrdinary SharesUSUSDDec 2017

Biography

Luxfer Holdings PLC, a materials technology company, designs, manufactures, and supplies high-performance materials, components, and high-pressure gas cylinders for transportation, defense and emergency response, healthcare, and general industrial end-market applications. It operates in two segments, Gas Cylinders and Elektron. The Gas Cylinders segment manufactures and markets aluminum, titanium, and carbon composite cylinders, which are used for self-contained breathing apparatus that are used by firefighters and other emergency-responders, as well as scuba divers and personnel in potentially hazardous environments, such as mines; and aluminum and composite cylinders for use in the containment of oxygen and other medical gases that are used by patients, healthcare facilities, and laboratories. This segment also offers carbon composite cylinders for compressed natural gas and hydrogen containment in alternative fuel vehicles; lightweight aluminum cylinders for a variety of industrial applications, such as fire extinguishers and containment of high-purity specialty gases; and lightweight aluminum and titanium panels primarily for use in the aerospace and luxury-auto industries. The Elektron segment focuses on specialty materials based on magnesium, zircon sand, and rare earths. It develops and manufactures magnesium alloys; magnesium powders; and magnesium, copper, and zinc photoengraving plates for graphic arts and luxury packaging. This segment also develops and manufactures zirconium-based materials and oxides used as catalysts and in the manufacture of advanced ceramics, fiber-optic fuel cells, and other performance products. Luxfer Holdings PLC has operations in the United States, the United Kingdom, Germany, Italy, France, rest of Europe, the Asia Pacific, Canada, South America, Latin America, and Africa. The company was founded in 1898 and is headquartered in Manchester, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 05:19
End of Day Share Price2020/05/29 00:00
Earnings2020/03/29
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.