NYSE:LTHM

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Livent Corporation manufactures and sells performance lithium based batteries, specialty polymer, and chemical synthesis applications in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. More Details

Rewards

Earnings are forecast to grow 117.82% per year

Risk Analysis

No risks detected for LTHM from our risk checks.


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: LTHM's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

-4.8%

LTHM

-1.5%

US Chemicals

2.6%

US Market


1 Year Return

142.9%

LTHM

25.1%

US Chemicals

26.0%

US Market

Return vs Industry: LTHM exceeded the US Chemicals industry which returned 25.1% over the past year.

Return vs Market: LTHM exceeded the US Market which returned 26% over the past year.


Shareholder returns

LTHMIndustryMarket
7 Day-4.8%-1.5%2.6%
30 Day14.0%3.5%5.1%
90 Day102.5%19.1%17.1%
1 Year142.9%142.9%28.0%25.1%28.9%26.0%
3 Yearn/a24.2%0.9%46.3%36.6%
5 Yearn/a113.9%65.4%126.9%101.6%

Long-Term 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?

5.53x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: LTHM ($21.4) is trading above our estimate of fair value ($13.92)

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


Price To Earnings Ratio

PE vs Industry: LTHM is unprofitable, so we can't compare its PE Ratio to the US Chemicals industry average.

PE vs Market: LTHM is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LTHM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LTHM is overvalued based on its PB Ratio (5.5x) compared to the US Chemicals industry average (2.6x).


Next Steps

Future Growth

How is Livent forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

117.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LTHM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: LTHM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LTHM's is expected to become profitable in the next 3 years.

Revenue vs Market: LTHM's revenue (16.8% per year) is forecast to grow faster than the US market (10.6% per year).

High Growth Revenue: LTHM's revenue (16.8% 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 (8.1%).


Next Steps

Past Performance

How has Livent performed over the past 5 years?

-20.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LTHM is currently unprofitable.

Growing Profit Margin: LTHM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LTHM is unprofitable, and losses have increased over the past 5 years at a rate of 20.2% per year.

Accelerating Growth: Unable to compare LTHM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LTHM is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-16.3%).


Return on Equity

High ROE: LTHM has a negative Return on Equity (-2.49%), as it is currently unprofitable.


Next Steps

Financial Health

How is Livent's financial position?


Financial Position Analysis

Short Term Liabilities: LTHM's short term assets ($253.6M) exceed its short term liabilities ($78.2M).

Long Term Liabilities: LTHM's short term assets ($253.6M) do not cover its long term liabilities ($258.3M).


Debt to Equity History and Analysis

Debt Level: LTHM's debt to equity ratio (39.6%) 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 operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: LTHM is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Livent 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 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.


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?

2.7yrs

Average management tenure


CEO

Paul Graves (48 yo)

2.67yrs

Tenure

US$1,329,170

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 ($USD1.33M) is below average for companies of similar size in the US market ($USD5.01M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul Graves
President2.67yrsUS$1.33m0.23%
$ 7.3m
Gilberto Antoniazzi
VP, CFO & Treasurer2.67yrsUS$601.97k0.029%
$ 903.3k
Sara Ponessa
VP, General Counsel & Secretary2.67yrsUS$490.55k0.014%
$ 434.9k
Barbara Fochtman
Chief Operations & Engineering Officer2yrsno datano data
Ronald Stark
Corporate Controller & Chief Accounting Officer1.83yrsno datano data
Daniel Rosen
Investor Relations Managerno datano datano data
Juan Cruz
Chief Communications Officer & Global Head of Public Affairsno datano datano data
Walter Czarnecki
Chief Commercial Officerno datano datano data

2.7yrs

Average Tenure

49yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Paul Graves
President2.67yrsUS$1.33m0.23%
$ 7.3m
G. D'Aloia
Independent Director3yrsUS$170.01k0.13%
$ 4.1m
Michael Barry
Independent Director3yrsUS$185.01k0.036%
$ 1.1m
Pierre Brondeau
Chairman2.25yrsUS$196.71k0.19%
$ 5.8m
Andrea Utecht
Director2.25yrsUS$175.88k0.081%
$ 2.5m
Robert Pallash
Independent Director3yrsUS$175.01k0.045%
$ 1.4m
Pablo Marcet
Independent Director0.92yrno data0.017%
$ 536.6k
Christina Lampe-Önnerud
Independent Director0.92yrno data0.012%
$ 386.7k
Steven Merkt
Independent Director3yrsUS$170.01k0.019%
$ 590.8k

2.7yrs

Average Tenure

62yo

Average Age

Experienced Board: LTHM's board of directors are not considered experienced ( 2.7 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 not been meaningfully diluted in the past year.


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$3.131b
  • Shares outstanding: 146.30m
  • 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 based batteries, specialty polymer, and chemical synthesis applications in North America, Latin America, Europe, the Middle East, Africa, and t...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/26 01:01
End of Day Share Price2021/01/25 00:00
Earnings2020/09/30
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.