Luxfer (LXFR) AI Stock Analysis

• Market Cap: $365.02M
• Dividend Yield: 3.81%
• Average Volume (3M): 100.93K
• Price to Earnings (P/E): 25.8
• Beta (1Y): 1.13
• Revenue Growth: 3.36%
• EPS Growth: 57.40%
• Country: US
• Employees: 1,450
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.30
• Shares Outstanding: 26,721,510
• 10 Day Avg. Volume: 116,065
• 30 Day Avg. Volume: 100,927
• PEG Ratio: -0.02
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.90
• P/FCF Ratio: 8.60
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 4.78
• Enterprise Value/Ebitda: 10.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.03
• Revenue Forecast (FY): $375.70M

• Rating: 73 Outperform
• Price Target: $14.50 ▲(15.63% Upside)

Luxfer's overall stock score is driven by strong earnings call performance and positive technical indicators. While financial performance shows moderate health, challenges in revenue growth and net profit margins need addressing. The attractive dividend yield supports valuation, but the high P/E ratio suggests caution. Strategic initiatives and raised guidance provide a positive outlook.

Positive Factors

Operational Efficiency

The implementation of Centers of Excellence will enhance operational efficiency, leading to significant cost savings and improved margins over time.

Market Position in Defense and Aerospace

Strong performance in defense and aerospace sectors indicates a robust market position, supporting long-term revenue growth and stability.

Cash Generation

Strong cash generation and reduction in net debt enhance financial flexibility, allowing for strategic investments and shareholder returns.

Negative Factors

Declining Revenue Growth

Negative revenue growth indicates potential challenges in market demand or competitive pressures, which could impact long-term profitability.

Net Profit Margin Decline

A declining net profit margin suggests reduced efficiency in converting revenue into profit, potentially affecting future earnings.

Market Softness in Clean Energy and Automotive

Weakness in clean energy and automotive markets could hinder growth prospects in these segments, impacting overall revenue diversification.

Luxfer Business Overview & Revenue Model

Company Description

Luxfer Holdings PLC is a global manufacturer of advanced materials, specializing in the production of high-performance materials and components used in a variety of applications, including aerospace, automotive, healthcare, and energy. The company operates primarily through two segments: Gas Cylinders and Electric Vehicles. Luxfer's core products include lightweight, high-strength aluminum and composite cylinders for gas storage and transportation, as well as advanced materials for electric vehicle batteries and other high-tech applications.

How the Company Makes Money

Luxfer generates revenue primarily through the sale of its gas cylinders, which are utilized in various industries such as industrial gas, medical, and aerospace. The Gas Cylinders segment contributes a significant portion of the company's income through the production and sale of lightweight cylinders that cater to a growing demand for efficient gas storage solutions. Additionally, the Electric Vehicles segment has emerged as a key revenue stream, capitalizing on the increasing adoption of electric vehicles and the need for advanced battery materials. Luxfer has established partnerships with major automotive manufacturers and energy companies, enhancing its market presence and driving sales. The company also engages in research and development to innovate and expand its product offerings, further contributing to its revenue growth.

Luxfer Financial Statement Overview

Summary

Luxfer demonstrates moderate financial health with stable margins and a solid balance sheet. However, declining revenue growth and net profit margins pose challenges. The company maintains a low leverage position, which is a positive aspect, but needs to focus on improving profitability and revenue growth to enhance its financial standing.

Income Statement

Luxfer's income statement shows a mixed performance. The TTM gross profit margin is at 22.65%, indicating moderate profitability, but the net profit margin has decreased to 3.60% from 4.70% in the previous year, reflecting a decline in net income relative to revenue. Revenue growth has been negative, with a -1.61% decline in the TTM period, which is concerning. However, the EBIT and EBITDA margins remain stable, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.19 in the TTM period, indicating low leverage. The return on equity is 6.25%, which is a decline from previous years, suggesting reduced profitability for shareholders. The equity ratio is healthy, showing that a significant portion of assets is financed by equity.

Cash Flow

Cash flow analysis reveals a positive trend in free cash flow growth at 3.28% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 0.45, showing that operating cash flow covers net income adequately. However, the free cash flow to net income ratio has decreased slightly, suggesting a need for careful cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	397.30M	391.90M	405.00M	423.40M	374.10M	324.80M
Gross Profit	90.00M	85.70M	76.60M	95.00M	96.00M	80.90M
EBITDA	43.00M	45.10M	12.60M	62.90M	54.10M	46.10M
Net Income	14.30M	18.40M	-1.90M	26.90M	29.90M	20.00M
Balance Sheet
Total Assets	377.40M	382.40M	372.10M	407.10M	368.80M	346.40M
Cash, Cash Equivalents and Short-Term Investments	6.00M	4.10M	2.30M	12.60M	6.20M	1.50M
Total Debt	56.60M	59.80M	91.90M	104.10M	72.40M	63.00M
Total Liabilities	145.80M	162.90M	159.50M	199.80M	159.70M	179.30M
Stockholders Equity	231.60M	219.50M	212.60M	207.30M	209.10M	167.10M
Cash Flow
Free Cash Flow	36.56M	40.80M	16.90M	7.60M	17.00M	41.60M
Operating Cash Flow	44.19M	51.10M	26.30M	15.90M	26.10M	49.60M
Investing Cash Flow	4.09M	-3.40M	-9.50M	-5.70M	-5.10M	-6.80M
Financing Cash Flow	-44.23M	-44.00M	-27.50M	-2.00M	-16.10M	-52.50M

Luxfer Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 12.54 is below the 20-day moving average (MA) of 12.86, below the 50-day MA of 12.78, and above the 200-day MA of 12.09, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 67.85 is Neutral, neither overbought nor oversold. The STOCH value of 81.34 is Negative, 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	73 Outperform	$365.02M	25.83	7.14%	3.81%	3.36%	57.40%
GHM	69 Neutral	$673.45M	49.34	11.39%	―	16.04%	75.37%
OFLX	68 Neutral	$302.12M	18.77	19.37%	4.56%	-2.73%	-11.67%
PKOH	67 Neutral	$325.97M	10.92	8.13%	2.18%	-3.90%	61.80%
TWIN	66 Neutral	$226.18M	646.91	0.22%	1.02%	14.24%	-96.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BW	56 Neutral	$515.50M	-2.32	―	―	-38.45%	-148.99%

Luxfer Corporate Events

Luxfer Declares Quarterly Dividend for Shareholders

On October 6, 2025, Luxfer Holdings PLC announced that its Board of Directors declared a quarterly dividend of $0.13 per ordinary share, payable on November 5, 2025, to shareholders of record as of October 17, 2025. This announcement reflects Luxfer’s ongoing commitment to shareholder value and may impact its financial positioning and investor relations positively.