Luxfer Holdings Plc

LXFR

Industrial Inorganic Chemicals

Mkt Cap

$322.1M

PE

1073.73

Debt

$78.7M

Cash

$7.1M

EV

$393.7M

FCF

$35.6M

Market Cap

$322.1M

P/E Ratio

1073.73

Debt

$78.7M

Cash

$7.1M

EV

$393.7M

FCF

$35.6M

Charts data: {"Earnings":[{"time":"2015-12-30","value":16100000},{"time":"2016-12-30","value":17800000},{"time":"2017-12-30","value":11500000},{"time":"2018-12-30","value":25000000},{"time":"2019-12-30","value":3100000},{"time":"2020-12-30","value":20000000},{"time":"2021-12-30","value":29900000},{"time":"2022-12-30","value":26900000},{"time":"2023-12-30","value":-1900000}],"Sales":[{"time":"2016-12-30","value":414800000},{"time":"2017-12-30","value":441300000},{"time":"2018-12-30","value":487900000},{"time":"2019-12-30","value":443500000},{"time":"2020-12-30","value":324800000},{"time":"2021-12-30","value":374100000},{"time":"2022-12-30","value":423400000},{"time":"2023-12-30","value":405000000}],"Net Margins":[{"time":"2016-12-30","value":0.0429122468659595},{"time":"2017-12-30","value":0.02605937004305461},{"time":"2018-12-30","value":0.05124000819840131},{"time":"2019-12-30","value":0.006989853438556934},{"time":"2020-12-30","value":0.06157635467980296},{"time":"2021-12-30","value":0.07992515370221866},{"time":"2022-12-30","value":0.06353330184222956},{"time":"2023-12-30","value":-0.004691358024691358}],"Assets":[{"time":"2016-12-30","value":399800000},{"time":"2017-12-30","value":415800000},{"time":"2018-12-30","value":390400000},{"time":"2019-12-30","value":390300000},{"time":"2020-12-30","value":346400000},{"time":"2021-12-30","value":368800000},{"time":"2022-12-30","value":407100000},{"time":"2023-12-30","value":372100000}],"Stockholders Equity":[{"time":"2015-12-30","value":183800000},{"time":"2016-12-30","value":150400000},{"time":"2017-12-30","value":174500000},{"time":"2018-12-30","value":184300000},{"time":"2019-12-30","value":174400000},{"time":"2020-12-30","value":167100000},{"time":"2021-12-30","value":209100000},{"time":"2022-12-30","value":207300000},{"time":"2023-12-30","value":212600000}],"ROE":[{"time":"2015-12-30","value":0.08759521218715996},{"time":"2016-12-30","value":0.11835106382978723},{"time":"2017-12-30","value":0.0659025787965616},{"time":"2018-12-30","value":0.13564839934888767},{"time":"2019-12-30","value":0.017775229357798166},{"time":"2020-12-30","value":0.11968880909634949},{"time":"2021-12-30","value":0.14299378287900527},{"time":"2022-12-30","value":0.1297636275928606},{"time":"2023-12-30","value":-0.008936970837253057}],"ROA":[{"time":"2016-12-30","value":0.0822911455727864},{"time":"2017-12-30","value":0.06349206349206349},{"time":"2018-12-30","value":0.08990778688524591},{"time":"2019-12-30","value":0.035357417371252885},{"time":"2020-12-30","value":0.09468822170900693},{"time":"2021-12-30","value":0.10439262472885033},{"time":"2022-12-30","value":0.11029231147138295},{"time":"2023-12-30","value":0.011287288363343187}]}

Luxfer Holdings PLC, together with its subsidiaries, designs, manufactures, and supplies high-performance materials, components, and high-pressure gas containment devices for defense and emergency response, healthcare, transportation, and general industrial end-market applications. It operates in two segments, Elektron and Gas Cylinders. The Elektron segment focuses on specialty materials based primarily on magnesium and zirconium. This segment also provides magnesium alloys for use in variety of industries; magnesium powders for use in countermeasure flares, as well as heater meals; photoengraving plates for graphic arts; and zirconium-based materials and oxides used as catalysts and in the manufacture of advanced ceramics, fiber-optic fuel cells, pharmaceuticals, and other performance products. The Gas Cylinders segment manufactures and markets specialized products using carbon composites and aluminum alloys, including pressurized cylinders for use in various applications comprising self-contained breathing apparatus (SCBA) for firefighters, containment of oxygen, and other medical gases for healthcare, alternative fuel vehicles, and general industrial applications. Luxfer Holdings PLC has operations in the United States, the United Kingdom, Germany, Italy, France, rest of Europe, the Asia Pacific, and internationally. The company was founded in 1898 and is headquartered in Milwaukee, Wisconsin.

Sector

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10/1/23
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12/31/22
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12/31/19
10-Q
9/29/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18

DCF

Discounted Cash Flow Valuation of Luxfer Holdings Plc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

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	$35.6M	$30.54M	$26.19M	$22.47M	$19.27M	$16.53M	$14.18M	$12.16M	$10.43M	$8.946M	$7.673M	$76.73M
DCF		$26.55M	$19.8M	$14.77M	$11.02M	$8.217M	$6.129M	$4.571M	$3.41M	$2.543M	$1.897M	$18.97M
Value	$117.9M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -8.5%

Earnings Stability -33%

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.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	-	4.3%	2.6%	5.1%	0.7%	6.2%	8%	6.4%	-0.47%	0.076%
ROA	-	8.2%	6.3%	9%	3.5%	9.5%	10%	11%	1.1%	0.52%
ROE	8.8%	12%	6.6%	14%	1.8%	12%	14%	13%	-0.89%	0.14%

What is the average Net Margin?

The average Net Margin over the past 5 years is +4.31%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.26%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +7.43%.

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

The trend of ROA over the past 5 years is -0.45%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +8.95%.

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

The trend of ROE over the past 5 years is -1.04%.

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.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-	-	4.70	-	-11.42	1.30	3.58	14.07	4.54	2.21
Debt Equity	-	-	0.76	0.44	0.53	0.32	0.29	0.52	0.36	0.37
MIN
Graham Stability	-	-	-	100%	17%	100%	100%	100%	-7.4%	-7.4%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 2.21.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 4.47.

What is the Graham’s Stability?

Graham’s Stability measure stands at -0.07.

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.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	-0.34%	-3.7%	7.6%	-4.3%	-0.096%
Net Income	-	-	-	-	19%
Stockholders Equity	5.1%	2.9%	8.4%	2.6%	1.4%
FCF	23%	-19%	-26%	120%	-71%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -3.66%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.1%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +19.13%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +2.9%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +1.43%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -19.28%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -71.32%.