U.S. Markets closed

These Factors Make Livent Corporation (NYSE:LTHM) An Interesting Investment

Simply Wall St

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Livent Corporation (NYSE:LTHM) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of LTHM, it is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Livent here.

Excellent balance sheet and good value

LTHM is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that LTHM has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. LTHM seems to have put its debt to good use, generating operating cash levels of 1.39x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. LTHM's share price is trading below its true value according to its price-to-earnings ratio of 8.8x compared to its industry as well as the wider stock market, so potential investors can purchase the stock below its value.

NYSE:LTHM Price Estimation Relative to Market, June 7th 2019

Next Steps:

For Livent, there are three important factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for LTHM’s future growth? Take a look at our free research report of analyst consensus for LTHM’s outlook.
  2. Historical Performance: What has LTHM's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LTHM? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.