In Vitro & In Vivo Diagnostic Substances
Lantheus Holdings, Inc. develops, manufactures, and commercializes diagnostic and therapeutic products that assist clinicians in the diagnosis and treatment of heart, cancer, and other diseases worldwide. It provides DEFINITY, an ultrasound enhancing agent used in echocardiography exams; TechneLite, a technetium generator for nuclear medicine; Xenon-133 to assess pulmonary function; Neurolite to identify the area within the brain where blood flow has been blocked or reduced due to stroke; and Cardiolite, an injectable Tc-99m-labeled imaging agent. The company also offers AZEDRA, a radiotherapeutic therapy; Automated Bone Scan Index that calculates the disease burden of prostate cancer by detecting and classifying bone scan tracer uptakes as metastatic or benign lesions using an artificial neural network; RELISTOR for opioid-induced constipation; and PYLARIFY for visualization of lymph nodes, bone, and soft tissue metastases to determine the presence or absence of recurrent and/or metastatic prostate cancer. It also develops flurpiridaz to assess blood flow to the heart; 1095, a PSMA-targeted iodine-131 labeled small molecule; PNT2002 for pre-chemotherapy patients; PNT2003, an SSTR therapy that treats patients with SSTR-positive neuroendocrine tumors; and PYLARIFY AI, an AI-based medical device software to perform standardized quantitative assessment of PSMA PET/CT images in prostate cancer. The company serves hospitals, independent diagnostic testing facilities, government facilities, integrated delivery networks, radiopharmacies, clinics, distirbutors, and group practices. It has strategic partnerships with NanoMab Technology Limited; Bausch Health Companies, Inc.; GE Healthcare Limited; and FUJIFILM. The company was founded in 1956 and is based in Bedford, Massachusetts.
Discounted Cash Flow Valuation of Lantheus Holdings, Inc.
Growth
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Discount
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Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $314M | $354.5M | $397.1M | $441.3M | $486.6M | $532.3M | $577.5M | $621.6M | $663.6M | $702.6M | $737.7M | $7.377B |
DCF | $308.2M | $300.2M | $290.2M | $278.2M | $264.6M | $249.7M | $233.7M | $216.9M | $199.7M | $182.4M | $1.824B | |
Value | $4.347B |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | -5% | 8.9% | 37% | 12% | 9.1% | -4% | -17% | 3% | 25% | 34% |
ROA | 18% | 22% | 15% | 15% | 13% | -0.23% | -7% | 2.7% | 25% | 32% |
ROE | 8% | -25% | 530% | 57% | 28% | -2.6% | -15% | 6.3% | 40% | 49% |
The average Net Margin over the past 5 years is +4.73%.
The trend of Net Margin over the past 5 years is +1.02%.
The average ROA over the past 5 years is +8.05%.
The trend of ROA over the past 5 years is +0.33%.
The average ROE over the past 5 years is +18.84%.
The trend of ROE over the past 5 years is -4.63%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
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Debt FCF | 41.05 | 6.58 | 7.20 | 6.49 | 3.52 | 60.96 | 4.47 | 26.42 | 2.22 | 1.83 |
Debt Equity | -1.91 | -2.61 | 11.51 | 3.75 | 1.79 | 0.46 | 0.40 | 1.29 | 0.71 | 0.61 |
MIN | ||||||||||
Graham Stability | - | - | 100% | 90% | 50% | -21% | -360% | - | - | -360% |
The Debt/FCF trailing twelve month is 1.83.
The trend of Debt/FCF over the past 5 years is -0.26.
Graham’s Stability measure stands at -3.64.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
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Revenue | 23% | 30% | 56% | 39% | 9% |
Net Income | 43% | 52% | - | 1.1K% | 160% |
Stockholders Equity | - | 63% | 17% | 82% | -33% |
FCF | 30% | 45% | 300% | 1.1K% | 72% |
The Revenue CAGR over the past 5 years is +30.44%.
The trend of Revenue growth rate over the past 5 years is +9.03%.
The Earnings CAGR over the past 5 years is +51.81%.
The trend of Earnings growth rate over the past 5 years is +157.42%.
The Equity CAGR over the past 5 years is +62.96%.
The trend of Equity growth rate over the past 5 years is -33.3%.
The FCF CAGR over the past 5 years is +44.64%.
The trend of FCF growth rate over the past 5 years is +71.85%.