Livent Corp Return On Asset vs. Current Valuation

LTHMDelisted Stock  USD 24.95  1.05  4.04%   
Considering Livent Corp's profitability and operating efficiency indicators, Livent Corp may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Livent Corp's ability to earn profits and add value for shareholders.
For Livent Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Livent Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Livent Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Livent Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Livent Corp over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in rate.
Please note, there is a significant difference between Livent Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Livent Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Livent Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Livent Corp Current Valuation vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Livent Corp's current stock value. Our valuation model uses many indicators to compare Livent Corp value to that of its competitors to determine the firm's financial worth.
Livent Corp is currently regarded as number one stock in return on asset category among its peers. It is rated below average in current valuation category among its peers reporting about  24,449,953,753  of Current Valuation per Return On Asset. Comparative valuation analysis is a catch-all technique that is used if you cannot value Livent Corp by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Livent Current Valuation vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Livent Corp

Return On Asset

 = 

Net Income

Total Assets

 = 
0.13
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Livent Corp

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
3.11 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Livent Current Valuation vs Competition

Livent Corp is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Materials industry is now estimated at about 655.86 Billion. Livent Corp adds roughly 3.11 Billion in current valuation claiming only tiny portion of all equities under Materials industry.

Livent Corp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Livent Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Livent Corp will eventually generate negative long term returns. The profitability progress is the general direction of Livent Corp's change in net profit over the period of time. It can combine multiple indicators of Livent Corp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Livent Corporation manufactures and sells performance lithium compounds primarily used in lithium-based batteries, specialty polymers, and chemical synthesis applications in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. The company was incorporated in 2018 and is headquartered in Philadelphia, Pennsylvania. Livent Corp operates under Specialty Chemicals classification in the United States and is traded on New York Stock Exchange. It employs 1100 people.

Livent Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Livent Corp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Livent Corp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Livent Corp's important profitability drivers and their relationship over time.

Use Livent Corp in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Livent Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Livent Corp will appreciate offsetting losses from the drop in the long position's value.

Livent Corp Pair Trading

Livent Corp Pair Trading Analysis

The ability to find closely correlated positions to Livent Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Livent Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Livent Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Livent Corp to buy it.
The correlation of Livent Corp is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Livent Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Livent Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Livent Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Livent Corp position

In addition to having Livent Corp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Business Supplies Thematic Idea Now

Business Supplies
Business Supplies Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Business Supplies theme has 24 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Business Supplies Theme or any other thematic opportunities.
View All  Next Launch
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in rate.
You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

Other Consideration for investing in Livent Stock

If you are still planning to invest in Livent Corp check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Livent Corp's history and understand the potential risks before investing.
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing