Livent (NYSE:LTHM) - Share price, News & Analysis

LTHM fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	1/6
Financial Health	3/6
Dividends	0/6

LTHM Stock Overview

Rewards

Trading at 68.4% below our estimate of its fair value

Earnings are forecast to grow 19.53% per year

Became profitable this year

Risk Analysis

High level of non-cash earnings

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

Livent Competitors

Albemarle

NYSE:ALB

US$27.6b

Sociedad Química y Minera de Chile

NYSE:SQM

US$25.8b

Ganfeng Lithium

SZSE:002460

CN¥163.1b

Tianqi Lithium

SZSE:002466

CN¥135.2b

Price History & Performance

Summary of all time highs, changes and price drops for Livent
Historical stock prices
Current Share Price	US$28.76
52 Week High	US$33.04
52 Week Low	US$16.75
Beta	2.03
1 Month Change	10.40%
3 Month Change	26.75%
1 Year Change	64.72%
3 Year Change	316.81%
5 Year Change	n/a
Change since IPO	69.48%

Recent News & Updates

May 06

New Forecasts: Here's What Analysts Think The Future Holds For Livent Corporation (NYSE:LTHM)

Celebrations may be in order for Livent Corporation ( NYSE:LTHM ) shareholders, with the analysts delivering a...

May 04

Lithium Rush: It's High Time To Buy Livent

The lithium market will remain in a deficit until 2024 due to high demand from auto manufacturers. Due to acceleration in the adaptation of cars to new sources of energy, demand for batteries will increase. High demand for batteries will generate around 80% of demand for lithium as early as 2025, compared to 60% in 2019. Persistent high price of raw materials creates a favorable economic environment for lithium feedstock producers such as Livent, which is our favorite.

Shareholder Returns

	LTHM	US Chemicals	US Market
7D	22.7%	3.1%	0.1%
1Y	64.7%	-3.3%	-12.7%

Return vs Industry: LTHM exceeded the US Chemicals industry which returned -4.1% over the past year.

Return vs Market: LTHM exceeded the US Market which returned -11.5% over the past year.

Price Volatility

Is LTHM's price volatile compared to industry and market?
LTHM volatility
LTHM Average Weekly Movement	13.3%
Chemicals Industry Average Movement	7.1%
Market Average Movement	8.0%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	3.0%

Stable Share Price: LTHM is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: LTHM's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

Founded	Employees	CEO	Website
2018	1,109	Paul Graves	https://livent.com

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. The company offers lithium compounds for use in applications that have specific performance requirements, including battery-grade lithium hydroxide for use in high performance lithium-ion batteries; and butyllithium, which is used in the production of polymers and pharmaceutical products, as well as a range of specialty lithium compounds, including high purity lithium metal, which is used in non-rechargeable batteries and the production of lightweight materials for aerospace applications. It also provides lithium phosphate, pharmaceutical-grade lithium carbonate, high purity lithium chloride, and specialty organics; and lithium carbonate and lithium chloride for use as feedstock in the process of producing performance lithium compounds.

Livent Fundamentals Summary

How do Livent's earnings and revenue compare to its market cap?
LTHM fundamental statistics
Market Cap	US$4.39b
Earnings (TTM)	US$54.60m
Revenue (TTM)	US$472.20m

85.1x

P/E Ratio

9.8x

P/S Ratio

Is LTHM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LTHM income statement (TTM)
Revenue	US$472.20m
Cost of Revenue	US$332.10m
Gross Profit	US$140.10m
Other Expenses	US$85.50m
Earnings	US$54.60m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.34
Gross Margin	29.67%
Net Profit Margin	11.56%
Debt/Equity Ratio	28.4%

How did LTHM perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: LTHM ($28.76) is trading below our estimate of fair value ($91.06)

Significantly Below Fair Value: LTHM is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: LTHM is poor value based on its PE Ratio (85.1x) compared to the US Chemicals industry average (17.1x).

PE vs Market: LTHM is poor value based on its PE Ratio (85.1x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: LTHM is poor value based on its PEG Ratio (4.4x)

Price to Book Ratio

PB vs Industry: LTHM is overvalued based on its PB Ratio (5.5x) compared to the US Chemicals industry average (2.3x).

Future Growth

How is Livent forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

19.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LTHM's forecast earnings growth (19.5% per year) is above the savings rate (1.9%).

Earnings vs Market: LTHM's earnings (19.5% per year) are forecast to grow faster than the US market (12.4% per year).

High Growth Earnings: LTHM's earnings are forecast to grow, but not significantly.

Revenue vs Market: LTHM's revenue (16.2% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: LTHM's revenue (16.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: LTHM's Return on Equity is forecast to be low in 3 years time (18.7%).

Past Performance

How has Livent performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-48.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LTHM has a high level of non-cash earnings.

Growing Profit Margin: LTHM became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: LTHM's earnings have declined by 48.7% per year over the past 5 years.

Accelerating Growth: LTHM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LTHM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (32.3%).

Return on Equity

High ROE: LTHM's Return on Equity (6.4%) is considered low.

Financial Health

How is Livent's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: LTHM's short term assets ($364.5M) exceed its short term liabilities ($120.3M).

Long Term Liabilities: LTHM's short term assets ($364.5M) exceed its long term liabilities ($273.3M).

Debt to Equity History and Analysis

Debt Level: LTHM's net debt to equity ratio (20.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if LTHM's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: LTHM's debt is not well covered by operating cash flow (10.2%).

Interest Coverage: Insufficient data to determine if LTHM's interest payments on its debt are well covered by EBIT.

Balance Sheet

Dividend

What is Livent current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate LTHM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LTHM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LTHM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LTHM's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as LTHM has not reported any payouts.

Discover strong dividend paying companies

Management

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

3.8yrs

Average management tenure

CEO

Paul Graves (49 yo)

4yrs

Tenure

US$4,747,841

Compensation

Mr. Paul W. Graves has been President, Chief Executive Officer & Director of Livent Corporation since May 2018. Mr. Graves serves as an Independent Director at Lydall Inc. since April 20, 2021. Mr. Graves...

CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD4.75M) is below average for companies of similar size in the US market ($USD6.81M).

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

Leadership Team

Experienced Management: LTHM's management team is considered experienced (3.8 years average tenure).

Board Members

Experienced Board: LTHM's board of directors are considered experienced (4 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31