Long-established in the Drug Manufacturers industry, Lantheus Holdings Inc (LNTH, Financial) has enjoyed a stellar reputation. It has recently witnessed a daily gain of 5.54%, juxtaposed with a three-month change of -15.11%. However, fresh insights from the GF Score hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of Lantheus Holdings Inc.
Decoding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 6/10
- Profitability rank: 6/10
- Growth rank: 4/10
- GF Value rank: 1/10
- Momentum rank: 2/10
Based on the above method, GuruFocus assigned Lantheus Holdings Inc the GF Score of 58 out of 100, which signals poor future outperformance potential.
Understanding Lantheus Holdings Inc's Business
Lantheus Holdings Inc, with a market cap of $4.89 billion, caters to the United States healthcare sector with the development of diagnostic products. Its products are in three categories: Precision Diagnostics, Radiopharmaceutical Oncology, and Strategic Partnerships and Other Revenue. Precision Diagnostic products assist healthcare professionals in finding and following diseases, with a focus on cardiology. Radiopharmaceutical Oncology diagnostics and therapeutics help healthcare professionals find, fight, and follow cancer. Strategic Partnerships focus on enabling precision medicine through the use of biomarkers, digital solutions, and pharma services platforms, and also includes the license of RELISTOR to Bausch Health Companies, Inc. The company reported sales of $1.12 billion and an operating margin of 2.57%.
Growth Prospects
A lack of significant growth is another area where Lantheus Holdings Inc seems to falter, as evidenced by the company's low Growth rank. Furthermore, Lantheus Holdings Inc's predictability rank is just one star out of five, adding to investor uncertainty regarding revenue and earnings consistency.
Conclusion
Given the company's financial strength, profitability, and growth metrics, the GF Score highlights Lantheus Holdings Inc's unparalleled position for potential underperformance. While the company has a strong history in the Drug Manufacturers industry, its current metrics suggest that it may struggle to maintain this performance in the future. Investors should consider these factors when making investment decisions.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
