Arcadium Lithium plc (ALTM) Stock Fundamental Analysis
USA - NYSE:ALTM - JE00BM9HZ112 - Common Stock
5.84 USD
0 (0%)
5.84 USD
0 (0%)
Taking everything into account, ALTM scores 4 out of 10 in our fundamental rating. ALTM was compared to 82 industry peers in the Chemicals industry. There are concerns on the financial health of ALTM while its profitability can be described as average. ALTM is valied quite expensively at the moment, while it does show a decent growth rate.
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.
ALTM had positive earnings in 4 of the past 5 years.
ALTM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.01%, ALTM is in line with its industry, outperforming 47.06% of the companies in the same industry.
ALTM has a Return On Equity of 1.65%. This is comparable to the rest of the industry: ALTM outperforms 45.88% of its industry peers.
ALTM's Return On Invested Capital of 2.86% is on the low side compared to the rest of the industry. ALTM is outperformed by 63.53% of its industry peers.
ALTM had an Average Return On Invested Capital over the past 3 years of 8.50%. This is above the industry average of 6.23%.
The last Return On Invested Capital (2.86%) for ALTM is well below the 3 year average (8.50%), which needs to be investigated, but indicates that ALTM had better years and this may not be a problem.
| 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.
ALTM's Operating Margin of 36.16% is amongst the best of the industry. ALTM outperforms 96.47% of its industry peers.
In the last couple of years the Operating Margin of ALTM has grown nicely.
The Gross Margin of ALTM (49.37%) is better 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ALTM is creating some value.
Compared to 1 year ago, ALTM has more shares outstanding
Compared to 5 years ago, ALTM has more shares outstanding
ALTM has a worse debt/assets ratio than last year.
2.2 Solvency
ALTM has an Altman-Z score of 1.29. This is a bad value and indicates that ALTM is not financially healthy and even 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.
A Debt/Equity ratio of 0.11 indicates that ALTM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.11, ALTM belongs to the top of the industry, outperforming 83.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.29 |
ROIC/WACC0.4
WACC7.06%
2.3 Liquidity
ALTM has a Current Ratio of 1.09. This is a normal value and indicates that ALTM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ALTM (1.09) is worse 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's Quick ratio of 0.56 is on the low side compared to the rest of the industry. ALTM is outperformed by 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.
Measured over the past years, ALTM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -77.97% on average per year.
Looking at the last year, ALTM shows a quite strong growth in Revenue. The Revenue has grown by 14.20% in the last year.
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
ALTM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 53.89% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 44.92, ALTM can be considered very expensive at the moment.
ALTM's Price/Earnings ratio is a bit more expensive when compared to the industry. ALTM is more expensive than 65.88% of the companies in the same industry.
ALTM is valuated expensively when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 40.34, ALTM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALTM indicates a slightly more expensive valuation: ALTM is more expensive than 68.24% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ALTM to the average of the S&P500 Index (22.35), we can say ALTM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.92 | ||
| Fwd PE | 40.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALTM is valued a bit more expensive than the industry average as 62.35% of the companies are valued more cheaply.
| 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.
ALTM has a very decent profitability rating, which 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
No dividends for ALTM!.
| 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 Change1.42%
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.
Can you provide the valuation status for Arcadium Lithium plc?
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.
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.
How sustainable is the dividend of Arcadium Lithium plc (ALTM) stock?
The dividend rating of Arcadium Lithium plc (ALTM) is 0 / 10 and the dividend payout ratio is 0%.