Lantheus Holdings Inc (LNTH, Financial) has recently caught the attention of investors with its notable stock performance. The company's market capitalization stands at $5.05 billion, with the current stock price at $73.71. Over the past week, the stock has experienced a slight dip of 0.11%, but this minor loss is overshadowed by an impressive gain of 11.01% over the past three months. According to GF Value, the stock is currently modestly undervalued at $86.94, compared to its past GF Value of $64.57, which indicated it was fairly valued. This shift in valuation suggests that Lantheus Holdings may have more room to grow, making it an intriguing prospect for value investors.
Introduction to Lantheus Holdings Inc
Lantheus Holdings Inc, operating within the drug manufacturing industry, specializes in the development of diagnostic products across three main segments: Precision Diagnostics, Radiopharmaceutical Oncology, and Strategic Partnerships. The company's Precision Diagnostic products are designed to assist healthcare professionals in the detection and monitoring of diseases, particularly in cardiology. Its Radiopharmaceutical Oncology segment provides diagnostics and therapeutics for cancer care. Additionally, Lantheus Holdings fosters Strategic Partnerships to advance precision medicine through biomarkers, digital solutions, and pharma services platforms, including the licensing of RELISTOR to Bausch Health Companies, Inc.
Assessing Profitability
Lantheus Holdings Inc's profitability is commendable, with a Profitability Rank of 6/10. The company's operating margin stands at 4.60%, which is more competitive than 45.95% of 1,036 companies in the same industry. Its Return on Equity (ROE) is an impressive 18.71%, surpassing 88.26% of its peers. The Return on Assets (ROA) at 7.86% and Return on Invested Capital (ROIC) at 7.64% also indicate that Lantheus is more efficient in generating profits from its assets and capital than the majority of its competitors. Over the past decade, the company has maintained profitability for five years, which is better than 29.01% of 872 companies in the industry.
Growth Prospects of Lantheus Holdings
The Growth Rank for Lantheus Holdings is 4/10. The company has demonstrated a strong 3-Year Revenue Growth Rate per Share of 15.20%, outperforming 77.51% of 916 companies. However, the 5-Year Revenue Growth Rate per Share is a modest 2.60%, which is better than 34.71% of 798 companies. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at an impressive 19.77%, which is higher than 95.06% of 162 companies. Despite these positive indicators, the 3-Year EPS without NRI Growth Rate has declined by 22.50%, which is still better than 15.68% of 842 companies.
Notable Shareholders in Lantheus Holdings
Among the notable holders of Lantheus Holdings stock, Private Capital (Trades, Portfolio) leads with 435,481 shares, representing a 0.64% share percentage. Following closely is renowned investor Jim Simons (Trades, Portfolio), holding 251,431 shares, which equates to a 0.37% stake in the company. Ken Fisher (Trades, Portfolio) also has a significant investment with 161,784 shares, accounting for a 0.24% share percentage. These investments by prominent figures and firms underscore the potential they see in Lantheus Holdings.
Competitive Landscape
In comparison to its competitors, Lantheus Holdings Inc holds its own within the drug manufacturing industry. Elanco Animal Health Inc (ELAN, Financial) has a slightly higher market cap of $6.31 billion, while Alkermes PLC (ALKS, Financial) is valued at $4.32 billion. Intra-Cellular Therapies Inc (ITCI, Financial) is another close competitor with a market cap of $5.8 billion. Lantheus Holdings' recent stock performance and growth prospects suggest that it is well-positioned to compete effectively in this space.
Conclusion
In summary, Lantheus Holdings Inc has demonstrated a strong stock performance with an 11.01% gain over the past three months and is currently considered modestly undervalued according to GF Value. The company's profitability and growth metrics are solid, with particularly promising future revenue growth estimates. Its competitive standing in the drug manufacturing industry, alongside the confidence shown by notable shareholders, positions Lantheus Holdings as a potentially lucrative investment for value investors seeking growth opportunities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
