Arcadium Lithium plc (ALTM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALTM - JE00BM9HZ112 - Common Stock
5.84 USD
0 (0%)
5.84 USD
0 (0%)
ALTM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. There are concerns on the financial health of ALTM while its profitability can be described as average. While showing a medium growth rate, ALTM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year ALTM was profitable.
ALTM had a negative operating cash flow in the past year.
ALTM had positive earnings in 4 of the past 5 years.
Of the past 5 years ALTM 4 years had a positive operating cash flow.
1.2 Ratios
ALTM's Return On Assets of 1.01% is in line compared to the rest of the industry. ALTM outperforms 47.06% of its industry peers.
ALTM's Return On Equity of 1.65% is in line compared to the rest of the industry. ALTM outperforms 45.88% of its industry peers.
ALTM has a Return On Invested Capital of 2.86%. This is in the lower half of the industry: ALTM underperforms 63.53% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALTM is above the industry average of 6.10%.
The 3 year average ROIC (8.50%) for ALTM is well above the current ROIC(2.86%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | 1.65% | ||
| ROIC | 2.86% |
ROA(3y)8.14%
ROA(5y)4.55%
ROE(3y)13.03%
ROE(5y)7.26%
ROIC(3y)8.5%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 10.24%, ALTM belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
ALTM's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 36.16%, ALTM belongs to the best of the industry, outperforming 96.47% of the companies in the same industry.
In the last couple of years the Operating Margin of ALTM has grown nicely.
ALTM has a better Gross Margin (49.37%) than 92.94% of its industry peers.
In the last couple of years the Gross Margin of ALTM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.16% | ||
| PM (TTM) | 10.24% | ||
| GM | 49.37% |
OM growth 3Y339.85%
OM growth 5Y12.09%
PM growth 3Y315.53%
PM growth 5Y-4.55%
GM growth 3Y27%
GM growth 5Y9.04%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ALTM is still creating some value.
ALTM has more shares outstanding than it did 1 year ago.
ALTM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ALTM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that ALTM is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.29, ALTM is doing worse than 68.24% of the companies in the same industry.
ALTM has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
ALTM has a Debt to Equity ratio of 0.11. This is amongst the best in the industry. ALTM outperforms 83.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.29 |
ROIC/WACC0.4
WACC7.06%
2.3 Liquidity
A Current Ratio of 1.09 indicates that ALTM should not have too much problems paying its short term obligations.
ALTM has a worse Current ratio (1.09) than 83.53% of its industry peers.
A Quick Ratio of 0.56 indicates that ALTM may have some problems paying its short term obligations.
ALTM has a worse Quick ratio (0.56) than 83.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The earnings per share for ALTM have decreased strongly by -94.56% in the last year.
ALTM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -77.97% yearly.
ALTM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.20%.
ALTM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.01% yearly.
EPS 1Y (TTM)-94.56%
EPS 3YN/A
EPS 5Y-77.97%
EPS Q2Q%-97.06%
Revenue 1Y (TTM)14.2%
Revenue growth 3Y33.84%
Revenue growth 5Y21.01%
Sales Q2Q%58.97%
3.2 Future
The Earnings Per Share is expected to grow by 53.89% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 16.62% on average over the next years. This is quite good.
EPS Next Y11.36%
EPS Next 2Y51.71%
EPS Next 3Y62.79%
EPS Next 5Y53.89%
Revenue Next Year15.71%
Revenue Next 2Y16.95%
Revenue Next 3Y27.33%
Revenue Next 5Y16.62%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
ALTM is valuated quite expensively with a Price/Earnings ratio of 44.92.
Based on the Price/Earnings ratio, ALTM is valued a bit more expensive than 65.88% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.92, ALTM is valued quite expensively.
The Price/Forward Earnings ratio is 40.34, which means the current valuation is very expensive for ALTM.
Based on the Price/Forward Earnings ratio, ALTM is valued a bit more expensive than the industry average as 68.24% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 23.57. ALTM is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.92 | ||
| Fwd PE | 40.34 |
4.2 Price Multiples
ALTM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ALTM is more expensive than 62.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALTM does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ALTM may justify a higher PE ratio.
ALTM's earnings are expected to grow with 62.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.95
PEG (5Y)N/A
EPS Next 2Y51.71%
EPS Next 3Y62.79%
5. Dividend
5.1 Amount
ALTM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.84
0 (0%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners71.08%
Inst Owner Change0%
Ins Owners0.22%
Ins Owner Change0%
Market Cap6.27B
Revenue(TTM)1.01B
Net Income(TTM)103.20M
Analysts70
Price Target6.03 (3.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-39.28%
Min EPS beat(2)-74.86%
Max EPS beat(2)-3.69%
EPS beat(4)1
Avg EPS beat(4)-11.38%
Min EPS beat(4)-74.86%
Max EPS beat(4)34.36%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-10.28%
Min Revenue beat(2)-25.87%
Max Revenue beat(2)5.31%
Revenue beat(4)2
Avg Revenue beat(4)-7.56%
Min Revenue beat(4)-25.87%
Max Revenue beat(4)5.31%
Revenue beat(8)5
Avg Revenue beat(8)295.85%
Revenue beat(12)9
Avg Revenue beat(12)401.08%
Revenue beat(16)13
Avg Revenue beat(16)354.95%
PT rev (1m)0%
PT rev (3m)-3.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)119.38%
EPS NY rev (1m)0%
EPS NY rev (3m)1.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.96%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-5.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.92 | ||
| Fwd PE | 40.34 | ||
| P/S | 6.22 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 14.62 |
EPS(TTM)0.13
EY2.23%
EPS(NY)0.14
Fwd EY2.48%
FCF(TTM)-1.14
FCFYN/A
OCF(TTM)-0.16
OCFYN/A
SpS0.94
BVpS5.83
TBVpS4.5
PEG (NY)3.95
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | 1.65% | ||
| ROCE | 3.88% | ||
| ROIC | 2.86% | ||
| ROICexc | 2.89% | ||
| ROICexgc | 3.41% | ||
| OM | 36.16% | ||
| PM (TTM) | 10.24% | ||
| GM | 49.37% | ||
| FCFM | N/A |
ROA(3y)8.14%
ROA(5y)4.55%
ROE(3y)13.03%
ROE(5y)7.26%
ROIC(3y)8.5%
ROIC(5y)N/A
ROICexc(3y)10.83%
ROICexc(5y)N/A
ROICexgc(3y)11.51%
ROICexgc(5y)N/A
ROCE(3y)11.53%
ROCE(5y)N/A
ROICexgc growth 3Y191.49%
ROICexgc growth 5Y-15.97%
ROICexc growth 3Y175.9%
ROICexc growth 5Y-18.7%
OM growth 3Y339.85%
OM growth 5Y12.09%
PM growth 3Y315.53%
PM growth 5Y-4.55%
GM growth 3Y27%
GM growth 5Y9.04%
F-Score2
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 841.13% | ||
| Cap/Sales | 103.49% | ||
| Interest Coverage | 12.57 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.29 |
F-Score2
WACC7.06%
ROIC/WACC0.4
Cap/Depr(3y)1054.15%
Cap/Depr(5y)836.79%
Cap/Sales(3y)60.66%
Cap/Sales(5y)51.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-94.56%
EPS 3YN/A
EPS 5Y-77.97%
EPS Q2Q%-97.06%
EPS Next Y11.36%
EPS Next 2Y51.71%
EPS Next 3Y62.79%
EPS Next 5Y53.89%
Revenue 1Y (TTM)14.2%
Revenue growth 3Y33.84%
Revenue growth 5Y21.01%
Sales Q2Q%58.97%
Revenue Next Year15.71%
Revenue Next 2Y16.95%
Revenue Next 3Y27.33%
Revenue Next 5Y16.62%
EBIT growth 1Y-8.97%
EBIT growth 3Y488.68%
EBIT growth 5Y35.64%
EBIT Next Year99.7%
EBIT Next 3Y72.01%
EBIT Next 5Y51.11%
FCF growth 1Y-3990.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-159.2%
OCF growth 3YN/A
OCF growth 5YN/A
Arcadium Lithium plc / ALTM FAQ
What is the ChartMill fundamental rating of Arcadium Lithium plc (ALTM) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ALTM.
What is the valuation status of Arcadium Lithium plc (ALTM) stock?
ChartMill assigns a valuation rating of 1 / 10 to Arcadium Lithium plc (ALTM). This can be considered as Overvalued.
How profitable is Arcadium Lithium plc (ALTM) stock?
Arcadium Lithium plc (ALTM) has a profitability rating of 6 / 10.
What is the valuation of Arcadium Lithium plc based on its PE and PB ratios?
The Price/Earnings (PE) ratio for Arcadium Lithium plc (ALTM) is 44.92 and the Price/Book (PB) ratio is 1.
Can you provide the expected EPS growth for ALTM stock?
The Earnings per Share (EPS) of Arcadium Lithium plc (ALTM) is expected to grow by 11.36% in the next year.