Luxfer (LXFR) AI Stock Analysis

• Market Cap: $361.32M
• Dividend Yield: 3.85%
• Average Volume (3M): 131.54K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.04
• Revenue Growth: 5.60%
• EPS Growth: N/A
• Country: US
• Employees: 1,450
• Sector: Industrials
• Sector Strength: 74
• Industry: Industrial - Machinery
• EPS (TTM): 0.30
• Shares Outstanding: 26,764,076
• 10 Day Avg. Volume: 134,324
• 30 Day Avg. Volume: 131,541
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 4.30
• Enterprise Value/Ebitda: 7.23
• 1Y Price Target: $14.00
• Price Target Upside: 2.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: $14.00 ▲(2.19% Upside)

Luxfer's strong earnings performance and strategic initiatives drive a positive outlook. The stock's attractive valuation and technical momentum further support its potential, despite challenges in cash flow and certain market segments.

Luxfer Business Overview & Revenue Model

Company Description

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 on magnesium and zirconium. It 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, and other performance products. The Gas Cylinders segment manufactures and markets specialized products using carbon composites and aluminum, 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. 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 based in Manchester, the United Kingdom.

How the Company Makes Money

Luxfer generates revenue through multiple streams, primarily from the sale of its gas cylinders and engineered products. The Gas Cylinders segment serves a diverse customer base, including industries such as healthcare, where it supplies cylinders for medical oxygen, and industrial applications, providing gas storage solutions. The Engineered Products segment contributes revenue through the sale of specialized materials and components tailored for specific customer needs, including aerospace and defense applications. Additionally, Luxfer benefits from long-term contracts and partnerships with key customers, which provide stable revenue streams. The company's focus on innovation and sustainability further enhances its market position, allowing it to capitalize on growing trends in lightweight materials and energy-efficient solutions.

Luxfer Financial Statement Overview

Summary

Luxfer shows strong recovery in profitability with improved margins and return on equity. The balance sheet is stable with reduced leverage, but cash flow generation remains a challenge.

Income Statement

Luxfer's income statement shows a solid performance with a consistent increase in gross profit margin from 18.91% in 2023 to 22.46% in TTM 2025. The net profit margin improved significantly from a negative margin in 2023 to 6.02% in TTM 2025, indicating a turnaround in profitability. Revenue growth has been volatile, with a notable recovery in TTM 2025 at 1.08% after a decline in previous years. EBIT and EBITDA margins have also shown improvement, reflecting better operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a declining debt-to-equity ratio from 0.43 in 2023 to 0.22 in TTM 2025, indicating reduced leverage. Return on equity has improved to 10.69% in TTM 2025, showcasing better utilization of equity. The equity ratio remains stable, suggesting a balanced asset structure. However, the company should continue monitoring its debt levels to maintain financial stability.

Cash Flow

Cash flow analysis reveals a mixed performance. The free cash flow growth rate has been negative in TTM 2025 at -16.27%, indicating challenges in generating free cash flow. However, the operating cash flow to net income ratio is healthy at 0.41, and the free cash flow to net income ratio is strong at 0.78, suggesting efficient cash conversion. The company should focus on improving free cash flow generation to enhance liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	403.80M	391.90M	405.00M	423.40M	374.10M	324.80M
Gross Profit	90.70M	85.70M	76.60M	95.00M	96.00M	80.90M
EBITDA	53.90M	45.10M	9.30M	60.70M	62.90M	55.00M
Net Income	24.30M	18.40M	-1.90M	26.90M	29.90M	20.00M
Balance Sheet
Total Assets	399.20M	382.40M	372.10M	407.10M	368.80M	346.40M
Cash, Cash Equivalents and Short-Term Investments	4.40M	4.10M	2.30M	12.60M	6.20M	1.50M
Total Debt	52.60M	59.80M	91.90M	104.10M	72.40M	63.00M
Total Liabilities	161.50M	162.90M	159.50M	199.80M	159.70M	179.30M
Stockholders Equity	237.70M	219.50M	212.60M	207.30M	209.10M	167.10M
Cash Flow
Free Cash Flow	35.40M	40.80M	16.90M	7.60M	17.00M	41.60M
Operating Cash Flow	45.10M	51.10M	26.30M	15.90M	26.10M	49.60M
Investing Cash Flow	-2.50M	-3.40M	-9.50M	-5.70M	-5.10M	-6.80M
Financing Cash Flow	-40.90M	-44.00M	-27.50M	-2.00M	-16.10M	-52.50M

Luxfer Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LXFR, the sentiment is Positive. The current price of 13.7 is above the 20-day moving average (MA) of 12.92, above the 50-day MA of 12.42, and above the 200-day MA of 12.27, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 66.42 is Neutral, neither overbought nor oversold. The STOCH value of 73.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LXFR.

Luxfer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LXFR	77 Outperform	$361.32M	14.66	11.89%	3.85%	5.60%	―
OFLX	72 Outperform	$356.23M	20.46	20.68%	3.85%	-4.53%	-11.25%
GHM	69 Neutral	$539.68M	39.24	11.97%	―	14.64%	182.19%
TWIN	68 Neutral	$185.19M	29.82	-1.19%	1.22%	15.45%	-117.28%
PKOH	64 Neutral	$294.24M	8.15	11.16%	2.38%	-2.82%	69.68%
Sector *	64 Neutral	$10.73B	15.74	7.64%	2.01%	2.76%	-15.10%
HURC	48 Neutral	$108.53M	―	-6.59%	1.15%	-6.13%	-6.61%

Luxfer Corporate Events

Luxfer Appoints Stewart Watson as Non-Executive Director

Luxfer Holdings PLC announced the appointment of Stewart Watson as a Non-Executive Director to its Board, effective September 1, 2025. With over 35 years of leadership experience, primarily in the aerospace and defense industry, Watson’s expertise in strategic planning and international business leadership is expected to enhance Luxfer’s Board capabilities, supporting operational excellence and strategic growth.

Luxfer Relocates Executive Office to Riverside, CA

Luxfer Holdings PLC has announced a change in its principal executive office location, moving to 3016 Kansas Avenue, Riverside, CA, effective August 5, 2025. This relocation from Milwaukee, WI, does not entail any operational changes, indicating a strategic decision focused solely on office logistics without impacting the company’s operations or stakeholders.

Luxfer Announces Quarterly Dividend for Shareholders

On July 7, 2025, Luxfer Holdings PLC announced a quarterly dividend of $0.13 per ordinary share, payable on August 6, 2025, to shareholders recorded by July 18, 2025. This announcement reflects Luxfer’s ongoing commitment to shareholder value and may impact its financial positioning and stakeholder interests.

Luxfer Completes Divestiture of Graphic Arts Business

On July 2, 2025, Luxfer Holdings PLC announced the completion of its divestiture of the Graphic Arts business to Vulcan Metals Specialty Products, Inc., an affiliate of TerraMar Capital LLC. This move is part of Luxfer’s strategic initiative to focus on its core Gas Cylinders and Elektron segments, enhancing performance and maintaining strategic optionality for long-term value creation. The divestiture allows Luxfer to concentrate on innovation and growth in its primary segments, while the Graphic Arts business is expected to thrive under new ownership.

Luxfer Approves Key Resolutions at 2025 AGM

Luxfer held its 2025 Annual General Meeting (AGM) on June 5, 2025, in Manchester, England, with a quorum of 84.9% of shareholders represented. During the AGM, shareholders voted on fourteen resolutions, including the election of directors, approval of executive compensation, and the re-appointment of PricewaterhouseCoopers LLP as the independent auditor. Notably, shareholders approved the Board’s recommendation to hold annual ‘say-on-pay’ votes and authorized the Board to issue shares and repurchase up to 10% of the company’s share capital, impacting the company’s governance and financial strategies.