Luxfer (LXFR) AI Stock Analysis

• Market Cap: $304.51M
• Dividend Yield: 4.64%
• Average Volume (3M): 121.83K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.99
• Revenue Growth: 1.63%
• EPS Growth: 7162.39%
• Country: US
• Employees: 1,450
• Sector: Industrials
• Sector Strength: 92
• Industry: Industrial - Machinery
• EPS (TTM): 0.23
• Shares Outstanding: 27,236,677
• 10 Day Avg. Volume: 101,314
• 30 Day Avg. Volume: 121,834
• PEG Ratio: 0.90
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.47
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $17.00
• Price Target Upside: 52.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $12.50 ▲( 11.81% Upside)

Luxfer's solid financial health and attractive valuation are key strengths, supporting its overall score. Technical analysis presents a neutral outlook, while the positive earnings call sentiment adds a bullish nuance. Continued monitoring of profitability margins and market momentum will be crucial for future performance.

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 makes money by manufacturing and selling its specialized materials and products to a diverse range of industries. Revenue is primarily generated through the sale of aluminum and magnesium alloys, which are integral to lightweighting and performance enhancement in automotive and aerospace applications. Additionally, Luxfer's composite cylinders are sold to various sectors for use in storing gases under high pressure, such as in medical oxygen delivery systems and fire extinguishing equipment. The company also benefits from longstanding partnerships with industry leaders and government contracts, which provide stable revenue streams. Luxfer's focus on innovation and quality allows it to maintain competitive pricing and secure recurring business from its clients.

Luxfer Financial Statement Overview

Summary

Luxfer demonstrates solid financial health with strong cash flow management and stable revenue growth. While profitability margins and leverage remain areas for improvement, the company maintains a strong equity base and efficient operations.

Income Statement

Luxfer's income statement shows a stable gross profit margin of approximately 22.2% in TTM, reflecting efficient cost management. The net profit margin of 5.3% in TTM indicates moderate profitability, with a slight improvement from the previous year. Revenue growth is positive, with a 1.9% increase from the previous annual report, signaling steady growth. The EBIT and EBITDA margins of 9.5% and 13.9% in TTM, respectively, suggest solid operational efficiency, although there is room for improvement in profit margins.

Balance Sheet

The balance sheet indicates a healthy equity ratio of 58.9% in TTM, demonstrating strong financial stability. However, the debt-to-equity ratio of 0.20 in TTM, while manageable, suggests potential leverage risks if debt levels increase. The return on equity (ROE) of 9.4% in TTM shows satisfactory profitability from shareholders' equity, but there is potential for further improvement.

Cash Flow

Luxfer's cash flow statement reflects robust free cash flow generation, with a free cash flow to net income ratio of approximately 1.98 in TTM, indicating strong cash conversion. The operating cash flow to net income ratio of 2.48 in TTM underscores effective cash management. The free cash flow growth rate of 3.1% highlights consistent cash flow growth, supporting future investments and debt servicing.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
399.50M	391.90M	405.00M	423.40M	374.10M	324.80M
	Gross Profit
88.70M	85.70M	76.60M	95.00M	96.00M	80.90M
	EBIT
38.00M	30.10M	4.20M	44.80M	36.20M	41.70M
	EBITDA
59.10M	45.10M	9.30M	60.70M	62.90M	55.00M
	Net Income Common Stockholders
21.20M	18.40M	-1.90M	26.90M	29.90M	20.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.10M	4.10M	2.30M	12.60M	6.20M	1.50M
	Total Assets
385.20M	382.40M	372.10M	407.10M	368.80M	346.40M
	Total Debt
60.20M	59.80M	91.90M	81.20M	59.60M	53.40M
	Net Debt
56.10M	55.70M	89.60M	68.60M	53.40M	51.90M
	Total Liabilities
158.50M	162.90M	159.50M	199.80M	159.70M	179.30M
	Stockholders Equity
226.70M	219.50M	212.60M	207.30M	209.10M	167.10M
Cash Flow		Free Cash Flow
42.28M	40.80M	16.90M	7.60M	17.00M	41.60M
	Operating Cash Flow
52.77M	51.10M	26.30M	15.90M	26.10M	49.60M
	Investing Cash Flow
-3.29M	-3.40M	-9.50M	-5.70M	-5.10M	-6.80M
	Financing Cash Flow
-50.48M	-44.00M	-27.50M	-2.00M	-16.10M	-52.50M

Luxfer Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.18
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LXFR, the sentiment is Negative. The current price of 11.18 is below the 20-day moving average (MA) of 11.43, above the 50-day MA of 11.04, and below the 200-day MA of 12.27, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 47.02 is Neutral, neither overbought nor oversold. The STOCH value of 10.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LXFR.

Luxfer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GHM	77 Outperform	$401.12M	44.12	8.41%	―	11.22%	229.35%
OFLX	71 Outperform	$323.22M	18.62	21.33%	4.21%	-6.47%	-9.76%
LXFR	71 Outperform	$304.51M	14.18	9.61%	4.64%	1.63%	7162.39%
TWIN	67 Neutral	$98.33M	23.85	2.77%	2.22%	11.49%	-66.66%
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.38%	3.96%	-12.36%
PKOH	63 Neutral	$258.12M	6.80	12.58%	2.68%	-0.59%	190.35%
HURC	48 Neutral	$95.18M	―	-9.12%	1.09%	-13.86%	-1497.93%