In This Article:
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Luxfer Holdings PLC (NYSE:LXFR) due to its excellent fundamentals in more than one area. LXFR is a company with great financial health as well as a a great track record of performance. 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, take a look at the report on Luxfer Holdings here.
Proven track record with adequate balance sheet
In the previous year, LXFR has ramped up its bottom line by 72%, with its latest earnings level surpassing its average level over the last five years. Not only did LXFR outperformed its past performance, its growth also exceeded the Machinery industry expansion, which generated a 27% earnings growth. This is an optimistic signal for the future. LXFR’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. LXFR’s has produced operating cash levels of 0.6x total debt over the past year, which implies that LXFR’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For Luxfer Holdings, I’ve put together three relevant aspects you should look at:
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Future Outlook: What are well-informed industry analysts predicting for LXFR’s future growth? Take a look at our free research report of analyst consensus for LXFR’s outlook.
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Valuation: What is LXFR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether LXFR is currently mispriced by the market.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LXFR? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.