Livent Corp. (LTHM:NYE) Fundamental Analysis is slightly Bearish

STA Research
by: STA Research
Livent Corp.

Livent Corp Stock Analysis:

Based on the Livent stock forecast from 4 analysts, the average analyst target price for Livent Corp is USD 28.19 over the next 12 months. Livent stock average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Livent stock is Slightly Bearish, which is based on 4 positive signals and 8 negative signals. At the last closing, Livent stock price was USD 30.53Livent Corp’s stock price has changed by -7.18% over the past week, +17.74% over the past month and +20.53% over the last year.

 

About Livent Corp (LTHM:NYE)

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 Corporation’s is focus is on using lithium technology to create a  more sustainable, healthier world in which to live. Livent Corporation currently has a market capitalization of $5.7 billion and the company produced $420 million in revenues during 2021.The company has been is considered the leader in lithium technology, and plans to retain that title. The company was incorporated in 2018 and is headquartered in Philadelphia, Pennsylvania.

 

Most Recent Analyst Ratings for Livent stock:

 

 

What we like:

(Bullish Signals)

Superior risk adjusted returns

Livent stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

(Bearish Signals)

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

Livent stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

Livent stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

Livent stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Overpriced on free cash flow basis

Livent stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

Livent stock has shown below median earnings growth in the previous 5 years compared to its sector

Disclaimer

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