ALTM Fundamental Analysis - Arcadium Lithium plc

Fundamental Rating

Overall ALTM gets a fundamental rating of 4 out of 10. We evaluated ALTM 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.

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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.

Of the past 5 years ALTM 4 years had a positive operating cash flow.

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.

ALTM has a Return On Equity (1.65%) which is comparable to the rest of the industry.

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 6.34%.

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.

ALTM's Operating Margin of 36.16% is amongst the best of the industry. ALTM outperforms 96.47% of its industry peers.

ALTM's Operating Margin has improved in the last couple of years.

ALTM's Gross Margin of 49.37% is amongst the best of the industry. ALTM outperforms 92.94% of its industry peers.

ALTM's Gross Margin has improved in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

The number of shares outstanding for ALTM has been increased compared to 1 year ago.

ALTM has more shares outstanding than it did 5 years ago.

Compared to 1 year ago, ALTM has a worse debt to assets ratio.

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's Altman-Z score of 1.29 is on the low side compared to the rest of the industry. ALTM is outperformed by 68.24% of its industry peers.

ALTM has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.

The Debt to Equity ratio of ALTM (0.11) is better 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

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.

ALTM has a Current ratio of 1.09. This is amonst the worse of the industry: ALTM underperforms 83.53% of its industry peers.

ALTM has a Quick Ratio of 1.09. This is a bad value and indicates that ALTM is not financially healthy enough and could expect problems in meeting its short term obligations.

ALTM has a Quick ratio of 0.56. This is amonst the worse of the industry: ALTM underperforms 83.53% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.09
Quick Ratio	0.56

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for ALTM have decreased strongly by -94.56% in the last year.

ALTM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -77.97% yearly.

The Revenue has grown by 14.20% in the past year. This is quite good.

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.

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.

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.

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4. Valuation

4.1 Price/Earnings Ratio

ALTM is valuated quite expensively with a Price/Earnings ratio of 44.92.

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.

When comparing the Price/Earnings ratio of ALTM to the average of the S&P500 Index (27.38), we can say ALTM is valued expensively.

The Price/Forward Earnings ratio is 40.34, which means the current valuation is very expensive for ALTM.

68.24% of the companies in the same industry are cheaper than ALTM, based on the Price/Forward Earnings ratio.

ALTM is valuated expensively when we compare the Price/Forward Earnings ratio to 22.86, 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

62.35% 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	14.62

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%

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5. Dividend

5.1 Amount

ALTM does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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Arcadium Lithium plc

NYSE:ALTM (3/5/2025, 8:04:00 PM)

After market: 5.84 0 (0%)

5.84

0 (0%)

Chartmill FA Rating

GICS SectorMaterials

GICS IndustryGroupMaterials

GICS IndustryChemicals

Earnings (Last)02-27 2025-02-27/amc

Earnings (Next)05-05 2025-05-05/amc

Inst Owners71.08%

Inst Owner Change8.26%

Ins Owners0.22%

Ins Owner Change0%

Market Cap6.27B

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

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

ROICexcg growth 3Y191.49%

ROICexcg 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) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

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