ARCADIUM LITHIUM PLC (ALTM)
JE00BM9HZ112 - Common Stock
We assign a fundamental rating of 4 out of 10 to ALTM. ALTM was compared to 83 industry peers in the Chemicals industry. ALTM scores excellent on profitability, but there are concerns on its financial health. ALTM does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year ALTM was profitable.
In the past year ALTM has reported a negative cash flow from operations.
Of the past 5 years ALTM 4 years were profitable.
ALTM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ALTM (1.55%) is comparable to the rest of the industry.
The Return On Equity of ALTM (2.46%) is worse than 60.49% of its industry peers.
The Return On Invested Capital of ALTM (2.99%) is worse than 65.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALTM is above the industry average of 6.63%.
The 3 year average ROIC (8.67%) for ALTM is well above the current ROIC(2.99%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 2.46% | ||
| ROIC | 2.99% |
ROA(3y)7.82%
ROA(5y)5.51%
ROE(3y)12.51%
ROE(5y)8.78%
ROIC(3y)8.67%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 17.22%, ALTM belongs to the top of the industry, outperforming 95.06% of the companies in the same industry.
ALTM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 37.00%, ALTM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ALTM's Operating Margin has improved in the last couple of years.
ALTM has a Gross Margin of 50.04%. This is amongst the best in the industry. ALTM outperforms 93.83% of its industry peers.
ALTM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37% | ||
| PM (TTM) | 17.22% | ||
| GM | 50.04% |
OM growth 3YN/A
OM growth 5Y3.98%
PM growth 3YN/A
PM growth 5Y5.59%
GM growth 3Y56.48%
GM growth 5Y2.73%
2. Health
2.1 Basic Checks
ALTM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ALTM has about the same amount of shares outstanding.
ALTM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ALTM has been reduced compared to a year ago.
2.2 Solvency
ALTM has an Altman-Z score of 1.22. This is a bad value and indicates that ALTM is not financially healthy and even has some risk of bankruptcy.
ALTM's Altman-Z score of 1.22 is on the low side compared to the rest of the industry. ALTM is outperformed by 74.07% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that ALTM is not too dependend on debt financing.
The Debt to Equity ratio of ALTM (0.07) is better than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.22 |
ROIC/WACC0.42
WACC7.09%
2.3 Liquidity
A Current Ratio of 1.18 indicates that ALTM should not have too much problems paying its short term obligations.
The Current ratio of ALTM (1.18) is worse than 90.12% of its industry peers.
A Quick Ratio of 0.65 indicates that ALTM may have some problems paying its short term obligations.
The Quick ratio of ALTM (0.65) is worse than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
ALTM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -84.50%.
ALTM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.68% yearly.
ALTM shows a decrease in Revenue. In the last year, the revenue decreased by -2.12%.
The Revenue has been growing by 14.80% on average over the past years. This is quite good.
EPS 1Y (TTM)-84.5%
EPS 3YN/A
EPS 5Y12.68%
EPS Q2Q%-96.65%
Revenue 1Y (TTM)-2.12%
Revenue growth 3Y45.21%
Revenue growth 5Y14.8%
Sales Q2Q%-3.93%
3.2 Future
The Earnings Per Share is expected to decrease by -9.06% on average over the next years.
The Revenue is expected to grow by 1.36% on average over the next years.
EPS Next Y-86.17%
EPS Next 2Y-63.44%
EPS Next 3Y-33.42%
EPS Next 5Y-9.06%
Revenue Next Year-46.58%
Revenue Next 2Y-20.04%
Revenue Next 3Y-10.21%
Revenue Next 5Y1.36%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ALTM is valuated reasonably with a Price/Earnings ratio of 11.22.
Based on the Price/Earnings ratio, ALTM is valued cheaper than 86.42% of the companies in the same industry.
ALTM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.17.
Based on the Price/Forward Earnings ratio of 35.13, the valuation of ALTM can be described as expensive.
Based on the Price/Forward Earnings ratio, ALTM is valued a bit more expensive than the industry average as 72.84% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 23.59. ALTM is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.22 | ||
| Fwd PE | 35.13 |
4.2 Price Multiples
65.43% of the companies in the same industry are cheaper than ALTM, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.58 |
4.3 Compensation for Growth
ALTM has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as ALTM's earnings are expected to decrease with -33.42% in the coming years.
PEG (NY)N/A
PEG (5Y)0.89
EPS Next 2Y-63.44%
EPS Next 3Y-33.42%
5. Dividend
5.1 Amount
No dividends for ALTM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ARCADIUM LITHIUM PLC
NYSE:ALTM (1/2/2025, 9:46:09 AM)
5.16
+0.03 (+0.58%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners62.9%
Inst Owner Change-0.35%
Ins Owners0.22%
Ins Owner Change-10.44%
Market Cap5.55B
Analysts71.43
Price Target6.22 (20.54%)
Short Float %3.84%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-38.09%
Min EPS beat(2)-74.86%
Max EPS beat(2)-1.31%
EPS beat(4)2
Avg EPS beat(4)24.76%
Min EPS beat(4)-74.86%
Max EPS beat(4)140.85%
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)-12.76%
Min Revenue beat(2)-25.87%
Max Revenue beat(2)0.35%
Revenue beat(4)1
Avg Revenue beat(4)-20.95%
Min Revenue beat(4)-48.27%
Max Revenue beat(4)0.35%
Revenue beat(8)5
Avg Revenue beat(8)383.14%
Revenue beat(12)9
Avg Revenue beat(12)424.35%
Revenue beat(16)13
Avg Revenue beat(16)364.11%
PT rev (1m)0%
PT rev (3m)29.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-96.71%
EPS NY rev (1m)1.37%
EPS NY rev (3m)-25.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-21.72%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-7.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.22 | ||
| Fwd PE | 35.13 | ||
| P/S | 6.16 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.88 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 14.58 |
EPS(TTM)0.46
EY8.91%
EPS(NY)0.15
Fwd EY2.85%
FCF(TTM)-0.92
FCFYN/A
OCF(TTM)-0.11
OCFYN/A
SpS0.84
BVpS5.85
TBVpS4.59
PEG (NY)N/A
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 2.46% | ||
| ROCE | 3.59% | ||
| ROIC | 2.99% | ||
| ROICexc | 3.04% | ||
| ROICexgc | 3.57% | ||
| OM | 37% | ||
| PM (TTM) | 17.22% | ||
| GM | 50.04% | ||
| FCFM | N/A |
ROA(3y)7.82%
ROA(5y)5.51%
ROE(3y)12.51%
ROE(5y)8.78%
ROIC(3y)8.67%
ROIC(5y)N/A
ROICexc(3y)11.3%
ROICexc(5y)N/A
ROICexgc(3y)11.89%
ROICexgc(5y)N/A
ROCE(3y)10.42%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-6.41%
ROICexc growth 3YN/A
ROICexc growth 5Y-8.15%
OM growth 3YN/A
OM growth 5Y3.98%
PM growth 3YN/A
PM growth 5Y5.59%
GM growth 3Y56.48%
GM growth 5Y2.73%
F-Score2
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 1013.33% | ||
| Cap/Sales | 96.2% | ||
| Interest Coverage | 13.07 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 1.22 |
F-Score2
WACC7.09%
ROIC/WACC0.42
Cap/Depr(3y)948.94%
Cap/Depr(5y)844.93%
Cap/Sales(3y)36.62%
Cap/Sales(5y)40.07%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-84.5%
EPS 3YN/A
EPS 5Y12.68%
EPS Q2Q%-96.65%
EPS Next Y-86.17%
EPS Next 2Y-63.44%
EPS Next 3Y-33.42%
EPS Next 5Y-9.06%
Revenue 1Y (TTM)-2.12%
Revenue growth 3Y45.21%
Revenue growth 5Y14.8%
Sales Q2Q%-3.93%
Revenue Next Year-46.58%
Revenue Next 2Y-20.04%
Revenue Next 3Y-10.21%
Revenue Next 5Y1.36%
EBIT growth 1Y-29.67%
EBIT growth 3YN/A
EBIT growth 5Y19.38%
EBIT Next Year-66.13%
EBIT Next 3Y-13.73%
EBIT Next 5Y2.1%
FCF growth 1Y-4441.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-139.35%
OCF growth 3Y261.37%
OCF growth 5Y26.44%