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. While ALTM is still in line with the averages on profitability rating, there are concerns on its financial health. ALTM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ALTM had positive earnings in the past year.
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 (1.65%) which is in line with 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.
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
The Profit Margin of ALTM (10.24%) is better than 88.24% of its industry peers.
ALTM's Profit Margin has declined in the last couple of years.
ALTM has a better Operating Margin (36.16%) than 96.47% of its industry peers.
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
ALTM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ALTM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ALTM has been increased compared to 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.
A Debt/Equity ratio of 0.11 indicates that ALTM is not too dependend on debt financing.
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.
With a Current ratio value of 1.09, ALTM is not doing good in the industry: 83.53% of the companies in the same industry are doing better.
A Quick Ratio of 0.56 indicates that ALTM may have some problems paying its short term obligations.
With a Quick ratio value of 0.56, ALTM is not doing good in the industry: 83.53% of the companies in the same industry are doing better.
| 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.
Measured over the past years, ALTM shows a very strong growth in Revenue. The Revenue has been growing by 21.01% on average per year.
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.
Based on estimates for the next years, ALTM will show a quite strong growth in Revenue. The Revenue will grow by 16.62% on average per year.
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.
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
Based on the Price/Earnings ratio of 44.92, the valuation of ALTM can be described as expensive.
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.
The average S&P500 Price/Earnings ratio is at 26.92. ALTM is valued rather expensively when compared to this.
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.
When comparing the Price/Forward Earnings ratio of ALTM to the average of the S&P500 Index (23.57), we can say ALTM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.92 | ||
| Fwd PE | 40.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALTM indicates a slightly more expensive valuation: ALTM is more expensive than 62.35% of the companies listed 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.