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
ALTM had positive earnings in the past year.
In the past year ALTM has reported a negative cash flow from operations.
Of the past 5 years ALTM 4 years were profitable.
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 has a Return On Equity (1.65%) which 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.
ALTM had an Average Return On Invested Capital over the past 3 years of 8.50%. This is above the industry average of 6.05%.
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
ALTM has a Profit Margin of 10.24%. This is amongst the best in the industry. ALTM outperforms 88.24% of its industry peers.
In the last couple of years the Profit Margin of ALTM has declined.
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.
Looking at the Gross Margin, with a value of 49.37%, ALTM belongs to the top of the industry, outperforming 92.94% of the companies in the same industry.
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.
The number of shares outstanding for ALTM has been increased compared to 1 year ago.
The number of shares outstanding for ALTM has been increased compared to 5 years ago.
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.
The Altman-Z score of ALTM (1.29) is worse than 68.24% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that ALTM is not too dependend on debt financing.
ALTM's Debt to Equity ratio of 0.11 is amongst the best of 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.
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.
Looking at the Quick ratio, with a value of 0.56, ALTM is doing worse than 83.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
ALTM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -94.56%.
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.
The Revenue has been growing by 21.01% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, ALTM will show a very strong growth in Earnings Per Share. The EPS will grow by 53.89% on average per year.
ALTM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.62% yearly.
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.
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 the industry average as 65.88% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 26.34. ALTM is valued rather expensively when compared to this.
ALTM is valuated quite expensively with a Price/Forward Earnings ratio of 40.34.
Based on the Price/Forward Earnings ratio, ALTM is valued a bit more expensive than 68.24% of the companies in the same industry.
ALTM is valuated expensively when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| 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 an expensive valuation of the company.
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 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%.