Luxfer (LXFR) AI Stock Analysis

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Luxfer

(NYSE:LXFR)

72Outperform

Luxfer's solid financial performance, strong earnings call highlights, and attractive valuation contribute to a positive overall stock score. The company's robust backlog and strategic focus on defense and Elektron segments are significant strengths, despite technical indicators showing a downward trend.

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

Market Cap

$310.06M

Dividend Yield4.48%

Average Volume (3M)134.44K

Price to Earnings (P/E)14.3

Beta (1Y)0.98

Revenue Growth1.63%

EPS Growth7162.39%

CountryUS

Employees1,450

SectorIndustrials

Sector Strength80

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)0.23

Shares Outstanding27,414,429

10 Day Avg. Volume138,889

30 Day Avg. Volume134,435

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.18

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit4.28

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$17.00

Price Target Upside46.55% 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 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

Positive

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

Positive

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

Positive

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.

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

Neutral

Last Price11.60

Price Trends

50DMA

11.07

Positive

100DMA

12.24

Negative

200DMA

12.28

Negative

Market Momentum

MACD

0.08

Negative

RSI

62.79

Neutral

STOCH

88.00

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LXFR, the sentiment is Neutral. The current price of 11.6 is above the 20-day moving average (MA) of 10.39, above the 50-day MA of 11.07, and below the 200-day MA of 12.28, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 62.79 is Neutral, neither overbought nor oversold. The STOCH value of 88.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GHM	77 Outperform	$361.21M	39.73	8.41%	―	11.22%	229.35%
LXFR	72 Outperform	$310.06M	14.34	9.61%	4.48%	1.63%	7162.39%
OFLX	70 Outperform	$306.26M	17.57	21.33%	4.41%	-6.47%	-9.76%
TWIN	70 Outperform	$96.47M	10.21	2.77%	2.16%	11.49%	-66.66%
Sector *	64 Neutral	$4.24B	11.64	5.23%	249.83%	4.07%	-10.54%
PKOH	63 Neutral	$300.81M	6.70	12.58%	2.56%	-0.59%	188.79%
HURC	47 Neutral	$93.05M	―	-9.12%	1.07%	-13.86%	-1497.93%

* Industrials Sector Average

Performance Comparison

LXFR

Luxfer

11.59

0.47

4.23%

GHM

Graham

34.87

6.05

20.99%

HURC

Hurco Companies

14.96

-3.19

-17.58%

OFLX

Omega Flex

30.83

-34.05

-52.48%

PKOH

Park-Ohio Holdings

19.55

-7.21

-26.94%

TWIN

Twin Disc

7.06

-8.30

-54.04%

Luxfer Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q1-2025)

% Change Since: 15.54%|

Next Earnings Date:Jul 29, 2025

Earnings Call Sentiment Positive

Despite some underperformance in the Gas Cylinders segment and FX headwinds, Luxfer delivered strong earnings per share growth, significant sales growth, and operational improvements, particularly in the defense and Elektron segments. The introduction of new products and strategic focus areas show promising future potential.

Q1-2025 Updates

Positive Updates

Increased Earnings Per Share

Luxfer reported an adjusted earnings per share of $0.23, up from $0.20 a year ago.

Strong Sales Growth

Sales revenues grew significantly with a reported $90.5 million, up 8.9% year-over-year.

Elektron Segment Performance

Elektron sales rose to $49.4 million, up 31% from $37.7 million a year ago, with an EBITDA margin expansion to 17.6%.

Defense Market Strength

Increased demand in defense segments, with a notable 76% growth in this area, driven by flameless ration heaters and MRE products.

Introduction of Bulk Gas Transportation System

Secured first order for a bulk gas transportation system in Europe, marking a significant milestone in their international gas solutions portfolio.

Improved Cash Flow

Generated $5.1 million of cash from operations, a $1.5 million increase from the previous year.

Negative Updates

Gas Cylinders Revenue Decline

Gas Cylinders revenue was $41.1 million, down 9% from $45.4 million in the first quarter of 2024.

Margin Compression in Gas Cylinders

Adjusted EBITDA for Gas Cylinders came in at $2.6 million, reflecting a 6.3% margin versus 9% last year.

FX Headwind Impact

Foreign exchange was a modest $0.3 million headwind, impacting overall results.

Softness in Alternative Fuel Cylinders

Softer demand in alternative fuel cylinders with the heavy-duty truck market remaining subdued.

Company Guidance

During the call, Luxfer provided guidance for the full year 2025, reaffirming expectations for flat revenue growth and adjusted diluted earnings per share in the range of $0.95 to $1.05. The company also projected adjusted EBITDA between $48 million and $52 million, along with free cash flow generation of $20 million to $25 million. Luxfer emphasized its robust backlog across defense, first response, and aerospace applications, which bolsters its confidence in navigating the uncertain macroeconomic outlook. The company highlighted its tariff resilience and strategic capital deployment plans, including a routine share repurchase program with authorization for up to $10 million of opportunistic buybacks. Additionally, Luxfer expects to spend $12 million to $15 million in capital expenditures, focusing on both growth and maintenance opportunities.

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.