ARCADIUM LITHIUM PLC (ALTM)
JE00BM9HZ112 - Common Stock
Taking everything into account, ALTM scores 6 out of 10 in our fundamental rating. ALTM was compared to 84 industry peers in the Chemicals industry. While ALTM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ALTM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ALTM had positive earnings in the past year.
In the past year ALTM had a positive cash flow from operations.
ALTM had positive earnings in 4 of the past 5 years.
ALTM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.82%, ALTM belongs to the top of the industry, outperforming 96.47% of the companies in the same industry.
With an excellent Return On Equity value of 17.39%, ALTM belongs to the best of the industry, outperforming 81.18% of the companies in the same industry.
ALTM's Return On Invested Capital of 11.53% is amongst the best of the industry. ALTM outperforms 85.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALTM is in line with the industry average of 7.50%.
The last Return On Invested Capital (11.53%) for ALTM is above the 3 year average (9.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.82% | ||
| ROE | 17.39% | ||
| ROIC | 11.53% |
ROA(3y)7.23%
ROA(5y)5.16%
ROE(3y)10.67%
ROE(5y)7.64%
ROIC(3y)9.12%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of ALTM (36.02%) is better than 98.82% of its industry peers.
In the last couple of years the Profit Margin of ALTM has grown nicely.
ALTM has a better Operating Margin (42.12%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of ALTM has grown nicely.
ALTM's Gross Margin of 50.00% is amongst the best of the industry. ALTM outperforms 94.12% of its industry peers.
ALTM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.12% | ||
| PM (TTM) | 36.02% | ||
| GM | 50% |
OM growth 3YN/A
OM growth 5Y12.67%
PM growth 3YN/A
PM growth 5Y5.03%
GM growth 3Y90.48%
GM growth 5Y13.61%
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.
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 an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.52 indicates that ALTM is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.52, ALTM belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
ALTM has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
ALTM's Debt to Equity ratio of 0.14 is amongst the best of the industry. ALTM outperforms 81.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.52 |
ROIC/WACC1.61
WACC7.17%
2.3 Liquidity
ALTM has a Current Ratio of 3.46. This indicates that ALTM is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ALTM (3.46) is better than 84.71% of its industry peers.
A Quick Ratio of 1.99 indicates that ALTM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.99, ALTM is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.46 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
ALTM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.23%.
ALTM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.21% yearly.
ALTM shows a decrease in Revenue. In the last year, the revenue decreased by -8.97%.
Measured over the past years, ALTM shows a very strong growth in Revenue. The Revenue has been growing by 22.24% on average per year.
EPS 1Y (TTM)6.23%
EPS 3YN/A
EPS 5Y0.21%
EPS growth Q2Q-22.73%
Revenue 1Y (TTM)-8.97%
Revenue growth 3Y61.23%
Revenue growth 5Y22.24%
Revenue growth Q2Q-16.61%
3.2 Future
The Earnings Per Share is expected to decrease by -21.60% on average over the next years. This is quite bad
ALTM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.86% yearly.
EPS Next Y-81.1%
EPS Next 2Y-46.19%
EPS Next 3Y-21.6%
EPS Next 5YN/A
Revenue Next Year-30.39%
Revenue Next 2Y-1.78%
Revenue Next 3Y6.86%
Revenue Next 5YN/A
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.62, the valuation of ALTM can be described as very cheap.
Based on the Price/Earnings ratio, ALTM is valued cheaply inside the industry as 94.12% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 24.84. ALTM is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 12.19, the valuation of ALTM can be described as correct.
80.00% of the companies in the same industry are more expensive than ALTM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.35. ALTM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.62 | ||
| Fwd PE | 12.19 |
4.2 Price Multiples
ALTM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ALTM is cheaper than 63.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.05 |
4.3 Compensation for Growth
ALTM has an outstanding profitability rating, which may justify a higher PE ratio.
ALTM's earnings are expected to decrease with -21.60% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)26.73
EPS Next 2Y-46.19%
EPS Next 3Y-21.6%
5. Dividend
5.1 Amount
ALTM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ARCADIUM LITHIUM PLC
NYSE:ALTM (4/26/2024, 7:04:00 PM)
After market: 3.93 +0.05 (+1.29%)3.88
-0.09 (-2.27%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.62 | ||
| Fwd PE | 12.19 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)26.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.82% | ||
| ROE | 17.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 42.12% | ||
| PM (TTM) | 36.02% | ||
| GM | 50% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.46 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)6.23%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-81.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.97%
Revenue growth 3Y61.23%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y