Skip to Content

Livent Corp LTHM

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Stewardship

PREMIUM

Trimming FVE to $13 as Livent Announces Pricing on Convertible Bonds; Shares Materially Undervalued

Seth Goldstein, CFA Equity Analyst

Analyst Note

| Seth Goldstein, CFA |

On June 23, Livent announced the pricing for the senior convertible notes the company will issue. The notes will carry a 4.125% interest rate and convert at a price of approximately $8.73 per share, which represents a 35% premium to the June 22 closing price of $6.47 per share. In our June 22 update, we assumed a 45% premium for the notes. As the premium is lower than our assumption, the notes will be slightly more dilutive than we had originally modeled, with each $1,000 bond converting into 114.4885 shares, versus our assumption of roughly 106.6 shares. 

Read Full Analysis

Company Profile

Business Description

Livent is a pure-play lithium producer formed when FMC spun off its lithium business in October 2018. Livent should benefit from increased lithium demand via higher electric vehicle adoption, as lithium is a key component of EV batteries. The company's low-cost lithium carbonate production comes from brine resources in Argentina. Livent also operates downstream lithium hydroxide conversion plants in the United States and China.

Contact
2929 Walnut Street
Philadelphia, PA, 19104
T +1 215 299-6000
Sector Basic Materials
Industry Specialty Chemicals
Most Recent Earnings Mar 31, 2020
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 800