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%)
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. While ALTM is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
ALTM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ALTM has a Return On Assets of 1.01%. This is comparable to the rest of the industry: ALTM outperforms 47.06% of its industry peers.
The Return On Equity of ALTM (1.65%) is comparable to the rest of the industry.
ALTM has a worse Return On Invested Capital (2.86%) than 63.53% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALTM is above the industry average of 6.05%.
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
With an excellent Profit Margin value of 10.24%, ALTM belongs to the best 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's Gross Margin of 49.37% is amongst the best of the industry. ALTM outperforms 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.
Compared to 1 year ago, ALTM has more shares outstanding
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.
ALTM has a Altman-Z score of 1.29. This is in the lower half of the industry: ALTM underperforms 68.24% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that ALTM is not too dependend on debt financing.
ALTM has a better Debt to Equity ratio (0.11) than 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.
The Quick ratio of ALTM (0.56) is worse 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.
The earnings per share for ALTM have been decreasing by -77.97% on average. This is quite bad
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
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.
Based on the Price/Earnings ratio, ALTM is valued a bit more expensive than 65.88% of the companies in the same industry.
ALTM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.34.
A Price/Forward Earnings ratio of 40.34 indicates a quite expensive valuation of ALTM.
68.24% of the companies in the same industry are cheaper than ALTM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.56. 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 an expensive valuation of the company.
The decent profitability rating of ALTM may justify a higher PE ratio.
A more expensive valuation may be justified as ALTM's earnings are expected to grow with 62.79% in the coming years.
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 Change6.33%
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%.