LXFRLuxfer Holdings PLC
Is the business good?
The checks split: earnings fully cash-backed (2.0×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
A balanced mix of margins, efficiency, and leverage. ROE 4% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is LXFR?
Luxfer Holdings PLC earns 6.7% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.4 points below what the capital costs: growth destroys value
- Operating margin
- 6.3%
Operating margin · Specialty Industrial Machinery median 14% · 12 months to Q2 2026
- Cash conversion
- 2.00×
Cash conversion · 1.77× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.45%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 8.8% |
| FY2021 | 9.7% |
| FY2022 | 11% |
| FY2023 | 1.0% |
| FY2024 | 7.7% |
| FY2025 | 6.2% |
Details›
- Gross margin12 months to Q2 2026
- 25%
- Operating margin12 months to Q2 2026
- 6.3%
- Net margin12 months to Q2 2026
- 2.2%
- Free cash flow margin
- 4.6%
- R&D as % of revenue
- 1.4%
- Revenue, trailing twelve months
- $363M
- Free cash flow, trailing twelve months
- $17M
- Net income, trailing twelve months
- $8.0M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.7%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Specialty Industrial Machinery
Ranks #21 of 33 by RyuScore