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Livent Corp.

LTHM

Chemicals & Allied Products

Mkt Cap

$388.2B

PE

1034.89

Debt

$243.1M

Cash

$112.6M

EV

$388.3B

FCF

$40.3M

Market Cap

$388.2B

P/E Ratio

1034.89

Debt

$243.1M

Cash

$112.6M

EV

$388.3B

FCF

$40.3M
Charts data: {"Earnings":[{"time":"2016-12-30","value":47100000},{"time":"2017-12-30","value":42200000},{"time":"2018-12-30","value":126100000},{"time":"2019-12-30","value":50200000},{"time":"2020-12-30","value":-18900000},{"time":"2021-12-30","value":600000},{"time":"2022-12-30","value":273500000}],"Sales":[{"time":"2016-12-30","value":264100000},{"time":"2017-12-30","value":347400000},{"time":"2018-12-30","value":442500000},{"time":"2019-12-30","value":388400000},{"time":"2020-12-30","value":288200000},{"time":"2021-12-30","value":420400000},{"time":"2022-12-30","value":813200000}],"Net Margins":[{"time":"2016-12-30","value":0.1783415372964786},{"time":"2017-12-30","value":0.12147380541162925},{"time":"2018-12-30","value":0.28497175141242936},{"time":"2019-12-30","value":0.12924819773429455},{"time":"2020-12-30","value":-0.0655794587092297},{"time":"2021-12-30","value":0.0014272121788772598},{"time":"2022-12-30","value":0.33632562715199216}],"Assets":[{"time":"2017-12-30","value":496200000},{"time":"2018-12-30","value":660000000},{"time":"2019-12-30","value":859600000},{"time":"2020-12-30","value":936800000},{"time":"2021-12-30","value":1202500000},{"time":"2022-12-30","value":2074200000}],"Stockholders Equity":[{"time":"2016-12-30","value":310700000},{"time":"2017-12-30","value":385400000},{"time":"2018-12-30","value":487900000},{"time":"2019-12-30","value":544000000},{"time":"2020-12-30","value":565800000},{"time":"2021-12-30","value":795400000},{"time":"2022-12-30","value":1443000000}],"ROE":[{"time":"2016-12-30","value":0.15159317669777922},{"time":"2017-12-30","value":0.10949662688116243},{"time":"2018-12-30","value":0.25845460135273624},{"time":"2019-12-30","value":0.09227941176470589},{"time":"2020-12-30","value":-0.03340402969247084},{"time":"2021-12-30","value":0.0007543374402816193},{"time":"2022-12-30","value":0.18953568953568953}],"ROA":[{"time":"2017-12-30","value":0.2045546150745667},{"time":"2018-12-30","value":0.23212121212121212},{"time":"2019-12-30","value":0.06817124243834341},{"time":"2020-12-30","value":-0.022523484201537148},{"time":"2021-12-30","value":0.024698544698544697},{"time":"2022-12-30","value":0.1617008967312699}]}

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. The company was founded in 1940 and is headquartered in Philadelphia, Pennsylvania.

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Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$40.3M$52.39M$66.65M$82.94M$100.9M$120M$139.3M$157.9M$174.5M$188.1M$197.5M$1.975B
DCF$45.56M$50.4M$54.54M$57.7M$59.65M$60.23M$59.35M$57.06M$53.48M$48.83M$488.3M
Value$1.035B

In the chart Earnings are multiplied by this value.

Earnings Growth 19%
Earnings Stability -54%


Competitiveness and MOAT

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.

Years12-201612-201712-201812-201912-202012-202112-2022TTM
Net Margin18%12%28%13%-6.6%0.14%34%41%
ROA-20%23%6.8%-2.3%2.5%16%18%
ROE15%11%26%9.2%-3.3%0.075%19%22%

What is the average Net Margin?

The average Net Margin over the past 5 years is +13.46%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.08%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +11.15%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -2.65%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +10.29%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -1.42%.


Safety & Stabiliy

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.

Years12-201612-201712-201812-201912-202012-202112-2022TTM
Debt FCF-0.001.85-1.23-2.01-2.282.056.03
Debt Equity-0.000.070.280.420.300.170.14
MIN
Graham Stability---70%-26%1.1%100%-26%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 6.03.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.08.

What is the Graham’s Stability?

Graham’s Stability measure stands at -0.26.


Growth

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.

Years12-201712-201912-2021Trend
Revenue19%28%93%10%
Net Income45%76%45K%9.7K%
Stockholders Equity30%38%81%9.2%
FCF66%--160%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +18.54%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +10.04%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +45.32%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +9.73K%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +30.22%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +9.18%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +65.81%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +158.59%.