NYSE:LTHM

Stock Analysis Report

Executive Summary

Livent Corporation manufactures and sells performance lithium compounds for energy storage, specialty polymer, and chemical synthesis applications in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LTHM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-15.9%

LTHM

-3.6%

US Chemicals

-4.2%

US Market


1 Year Return

-27.6%

LTHM

-9.8%

US Chemicals

14.0%

US Market

Return vs Industry: LTHM underperformed the US Chemicals industry which returned -7.4% over the past year.

Return vs Market: LTHM underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

LTHMIndustryMarket
7 Day-15.9%-3.6%-4.2%
30 Day2.9%-2.7%-1.8%
90 Day19.2%-3.6%2.6%
1 Year-27.6%-27.6%3.4%-9.8%16.3%14.0%
3 Yearn/a24.2%0.4%43.2%34.0%
5 Yearn/a32.7%3.9%65.9%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate LTHM's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate LTHM's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: LTHM is poor value based on its PE Ratio (29.3x) compared to the Chemicals industry average (22.6x).

PE vs Market: LTHM is poor value based on its PE Ratio (29.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: LTHM is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: LTHM is overvalued based on its PB Ratio (2.7x) compared to the US Chemicals industry average (2.1x).


Next Steps

Future Growth

How is Livent forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

27.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LTHM's forecast earnings growth (27.9% per year) is above the savings rate (1.7%).

Earnings vs Market: LTHM's earnings (27.9% per year) are forecast to grow faster than the US market (14.1% per year).

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

Revenue vs Market: LTHM's revenue (11% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: LTHM's revenue (11% 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 (13%).


Next Steps

Past Performance

How has Livent performed over the past 5 years?

-60.2%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: LTHM has high quality earnings.

Growing Profit Margin: LTHM's current net profit margins (12.9%) are lower than last year (28.5%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if LTHM's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: LTHM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LTHM had negative earnings growth (-60.2%) over the past year, making it difficult to compare to the Chemicals industry average (-15.9%).


Return on Equity

High ROE: LTHM's Return on Equity (9.2%) is considered low.


Next Steps

Financial Health

How is Livent's financial position?


Financial Position Analysis

Short Term Liabilities: LTHM's short term assets ($266.7M) exceed its short term liabilities ($117.2M).

Long Term Liabilities: LTHM's short term assets ($266.7M) exceed its long term liabilities ($193.1M).


Debt to Equity History and Analysis

Debt Level: LTHM's debt to equity ratio (25.2%) 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 well covered by operating cash flow (42.4%).

Interest Coverage: LTHM's interest payments on its debt are well covered by EBIT (237x coverage).


Balance Sheet

Inventory Level: LTHM has a high level of physical assets or inventory.

Debt Coverage by Assets: LTHM's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

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


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 payouts.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LTHM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Paul Graves (47yo)

1.8yrs

Tenure

US$5,608,948

Compensation

Mr. Paul W. Graves has been President, Chief Executive Officer & Director of Livent Corporation since May 2018. Mr. Graves was Chief Executive Officer of Planned FMC Lithium Company since May 2018 until 20 ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD5.61M) is above average for companies of similar size in the US market ($USD3.81M).

Compensation vs Earnings: Paul's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Graves
President1.8yrsUS$5.61m0.11% $1.5m
Gilberto Antoniazzi
VP & CFO1.8yrsUS$1.49m0.0048% $66.1k
Barbara Fochtman
Global Head of Manufacturing & Operations1.1yrsno datano data
Ronald Stark
Corporate Controller & Chief Accounting Officer0.9yrsno datano data
Daniel Rosen
Investor Relations Manager0yrsno datano data
Sara Ponessa
VP, General Counsel & Secretary1.8yrsno datano data
Juan Cruz
Chief Communications Officer & Global Head of Public Affairs0yrsno datano data
Kathleen Weslock
Chief Human Resources Officer0yrsno datano data
Walter Czarnecki
Chief Commercial Officer0yrsno datano data

1.8yrs

Average Tenure

48yo

Average Age

Experienced Management: LTHM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Paul Graves
President1.8yrsUS$5.61m0.11% $1.5m
G. D'Aloia
Independent Director2.1yrsUS$69.70k0.097% $1.3m
Michael Barry
Independent Director2.1yrsUS$73.89k0.026% $350.7k
Pierre Brondeau
Chairman1.3yrsno data0.19% $2.6m
Andrea Utecht
Director1.3yrsno data0.072% $985.8k
Robert Pallash
Independent Director2.1yrsUS$71.10k0.034% $469.0k
Pablo Marcet
Director0yrsno data0.0064% $88.0k
Christina Lampe-Önnerud
Director0yrsno data0.0016% $22.4k
Steven Merkt
Independent Director2.1yrsUS$69.70k0.0082% $111.9k

2.1yrs

Average Tenure

61yo

Average Age

Experienced Board: LTHM's board of directors are not considered experienced ( 2.1 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: 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 14.4%.


Top Shareholders

Company Information

Livent Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Livent Corporation
  • Ticker: LTHM
  • Exchange: NYSE
  • Founded: 2018
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$1.368b
  • Shares outstanding: 145.98m
  • Website: https://www.livent.com

Number of Employees


Location

  • Livent Corporation
  • 2929 Walnut Street
  • Philadelphia
  • Pennsylvania
  • 19104
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LTHMNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2018
8LVDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2018

Biography

Livent Corporation manufactures and sells performance lithium compounds for energy storage, specialty polymer, 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 as a synthesizer 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 the production of lightweight materials for aerospace applications and non-rechargeable batteries. It also provides lithium phosphate, pharmaceutical-grade lithium carbonate, high purity lithium chloride, and specialty organics, as well as lithium carbonate and lithium chloride for use as feedstock in the process of producing performance lithium compounds. The company was incorporated in 2018 and is headquartered in Philadelphia, Pennsylvania. Livent Corporation operates independently of FMC Corporation as of March 1, 2019.  


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 02:07
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
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.