Luxfer (LXFR) AI Stock Analysis

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Luxfer

(NYSE:LXFR)

63Neutral

Luxfer's stock is supported by strong financial performance and reasonable valuation metrics, with a notable dividend yield. However, technical indicators suggest bearish momentum, and earnings call insights reflect potential near-term challenges. The company's focus on innovation and operational efficiency may drive long-term growth, though immediate revenue growth remains a priority.

Luxfer (LXFR) vs. S&P 500 (SPY)

Market Cap

$281.59M

Dividend Yield5.39%

Average Volume (3M)158.45K

Price to Earnings (P/E)15.3

Beta (1Y)1.00

Revenue Growth-3.23%

EPS GrowthN/A

CountryUS

Employees1,450

SectorIndustrials

Sector Strength61

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)0.69

Shares Outstanding26,742,073

10 Day Avg. Volume142,102

30 Day Avg. Volume158,450

Financial Highlights & Ratios

PEG Ratio0.76

Price to Book (P/B)N/A

Price to Sales (P/S)0.79

Price to Cash Flow (P/CF)3.00

P/FCF Ratio3.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$17.00

Price Target Upside61.44% Upside

Rating ConsensusHold

Number of Analyst Covering1

Luxfer Business Overview & Revenue Model

Company DescriptionLuxfer Holdings PLC (LXFR) is a global materials technology company specializing in the design and manufacture of high-performance materials, components, and gas cylinders. Operating across multiple sectors including aerospace, defense, healthcare, and transportation, Luxfer provides advanced solutions that enhance safety, reliability, and performance. The company's core products include lightweight, high-strength aluminum and magnesium alloys, as well as composite cylinders used for the safe storage of gases.

How the Company Makes MoneyLuxfer 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 has shown improvement in profitability with a net profit margin of 4.7% in 2024, along with increased gross profit margin and free cash flow. However, revenue fell by 3.2%, indicating a need for revenue growth to maintain momentum. The balance sheet remains stable with low leverage and improving equity returns.

Income Statement

Positive

Luxfer has shown improvement in profitability with a net profit margin of 4.7% in 2024, rebounding from a negative margin in 2023. Gross profit margin increased to 21.9% from 18.9% in 2023. However, revenue fell by 3.2% from 2023 to 2024, indicating a need for revenue growth to maintain momentum.

Balance Sheet

Positive

The company maintains a moderate debt-to-equity ratio of 0.21 in 2024, showing manageable leverage. Stockholders’ equity has increased, leading to an equity ratio of 57.4%, slightly up from 57.1% in 2023. The return on equity improved significantly to 8.4% in 2024, indicating efficient use of equity.

Cash Flow

Positive

Luxfer saw a substantial increase in free cash flow to $40.8 million in 2024 from $16.9 million in 2023, indicating enhanced cash generation. The operating cash flow to net income ratio of 2.8 suggests strong cash flow relative to profits, enhancing financial stability.

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

Luxfer Technical Analysis

Technical Analysis Sentiment

Negative

Last Price10.53

Price Trends

50DMA

12.66

Negative

100DMA

13.15

Negative

200DMA

12.54

Negative

Market Momentum

MACD

-0.36

Negative

RSI

39.92

Neutral

STOCH

38.45

Neutral

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 10.53 is below the 20-day moving average (MA) of 11.44, below the 50-day MA of 12.66, and below the 200-day MA of 12.54, indicating a bearish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 39.92 is Neutral, neither overbought nor oversold. The STOCH value of 38.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LXFR.

Luxfer Risk Analysis

Luxfer disclosed 29 risk factors in its most recent earnings report. Luxfer reported the most risks in the “Production” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Luxfer Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRS	75 Outperform	$7.65B	28.91	16.82%	0.53%	5.65%	84.17%
HWM	73 Outperform	$51.88B	45.55	26.89%	0.27%	11.90%	52.65%
ATI	70 Outperform	$6.86B	19.05	22.82%	―	4.51%	-2.90%
LXFR	63 Neutral	$281.59M	15.34	8.47%	5.39%	-3.23%	―
Sector *	62 Neutral	$7.67B	13.25	3.04%	3.47%	3.63%	-13.99%
KALU	56 Neutral	$882.63M	19.12	7.09%	6.13%	-2.04%	-1.36%
CSTM	51 Neutral	$1.27B	28.42	5.86%	―	-6.31%	-65.09%

* Industrials Sector Average

Performance Comparison

LXFR

Luxfer

10.53

0.62

6.26%

ATI

48.66

-3.43

-6.58%

CRS

Carpenter Technology

175.03

96.64

123.28%

KALU

Kaiser Aluminum

54.82

-32.95

-37.54%

CSTM

Constellium

8.84

-12.83

-59.21%

HWM

Howmet Aerospace

128.09

62.70

95.89%

Luxfer Earnings Call Summary

Earnings Call Date: Feb 25, 2025 | % Change Since: -23.86% | Next Earnings Date: Apr 28, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a strong financial performance in 2024 with substantial growth in key segments like Electron and strategic initiatives that improved operational efficiency. However, there are notable challenges in segments like Gas Cylinders and clean energy, with anticipated softness in early 2025. The company remains optimistic about long-term growth opportunities.

Highlights

Adjusted EPS Growth

Adjusted EPS rose to $0.29 in Q4, up 61% year over year, demonstrating strong financial performance.

Significant Cash Flow and Debt Reduction

Cash flow from operations was $25.7 million in Q4, and net debt was reduced to $41 million, marking a reduction of $28.9 million in 2024.

Electron Segment Growth

Electron segment sales rose 31.6% year over year in Q4, driven by strong defense demand and transportation sales, with adjusted EBITDA margin reaching 19.8%.

Operational Efficiency and Strategic Initiatives

The company executed strategic initiatives such as the planned sale of the graphic arts business and operational consolidations, contributing to an adjusted EBITDA margin of 13.7% for the full year.

Hydrogen Transportation Solutions Development

Luxfer Holdings PLC made progress in hydrogen transportation solutions, with European certifications for G Store Go HydroSphere trailers, positioning the company for future growth in clean energy.

Lowlights

Gas Cylinders Segment Challenges

Gas Cylinders' Q4 sales were down 6% year over year, with adjusted EBITDA also declining due to unfavorable mix and lower production leverage.

Market Weakness in Automotive Catalysis

The Electron segment faced headwinds from competitive pressures and market weakness in automotive catalysis.

Softer Demand in Clean Energy

Near-term headwinds in clean energy, with softer demand for hydrogen adoption and sluggish CNG-powered engine adoption in North America.

Expected Q1 2025 Softness

The company anticipates Q1 2025 earnings to be softer than the previous year's first quarter due to pull forward of orders and mixed market dynamics.

Company Guidance

During Luxfer Holdings PLC's fourth-quarter and full-year 2024 earnings call, the company provided detailed guidance for 2025. Despite anticipated macroeconomic uncertainties, such as geopolitical tensions and evolving trade policies, Luxfer projects revenue to remain flat compared to 2024. They forecast adjusted EPS between $0.95 and $1.05 and adjusted EBITDA in the range of $48 million to $52 million. The firm plans to maintain a strong balance sheet with expected free cash flow between $20 million and $25 million, despite the absence of 2024's one-time benefits from legal recovery and land sale. Luxfer also aims to keep full-year net debt to EBITDA around 0.7 times while maintaining dividend and share buyback levels. The company remains focused on innovation, particularly in clean energy, and operational efficiencies as part of its long-term strategic goals.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.