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LITHIUM ARGENTINA AG (LAR.CA) Stock Fundamental Analysis

TSX:LAR - Toronto Stock Exchange - CH1403212751 - Common Stock - Currency: CAD

2.66  +0.02 (+0.76%)

Fundamental Rating

3

Taking everything into account, LAR scores 3 out of 10 in our fundamental rating. LAR was compared to 807 industry peers in the Metals & Mining industry. The financial health of LAR is average, but there are quite some concerns on its profitability. LAR is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year LAR has reported negative net income.
LAR had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: LAR reported negative net income in multiple years.
LAR had a negative operating cash flow in each of the past 5 years.
LAR.CA Yearly Net Income VS EBIT VS OCF VS FCFLAR.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M 800M 1B

1.2 Ratios

Looking at the Return On Assets, with a value of 111.60%, LAR belongs to the top of the industry, outperforming 99.63% of the companies in the same industry.
LAR has a better Return On Equity (150.66%) than 99.63% of its industry peers.
Industry RankSector Rank
ROA 111.6%
ROE 150.66%
ROIC N/A
ROA(3y)36.07%
ROA(5y)22.94%
ROE(3y)45.44%
ROE(5y)29.94%
ROIC(3y)N/A
ROIC(5y)N/A
LAR.CA Yearly ROA, ROE, ROICLAR.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 100 150

1.3 Margins

LAR does not have Profit Margin and Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
LAR.CA Yearly Profit, Operating, Gross MarginsLAR.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 -500 -1K -1.5K -2K

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6

2. Health

2.1 Basic Checks

The number of shares outstanding for LAR has been increased compared to 1 year ago.
The number of shares outstanding for LAR has been increased compared to 5 years ago.
Compared to 1 year ago, LAR has an improved debt to assets ratio.
LAR.CA Yearly Shares OutstandingLAR.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
LAR.CA Yearly Total Debt VS Total AssetsLAR.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.2 Solvency

Based on the Altman-Z score of -0.23, we must say that LAR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of LAR (-0.23) is comparable to the rest of the industry.
LAR has a debt to FCF ratio of 0.85. This is a very positive value and a sign of high solvency as it would only need 0.85 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.85, LAR belongs to the top of the industry, outperforming 94.67% of the companies in the same industry.
LAR has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of LAR (0.25) is worse than 67.78% of its industry peers.
Although LAR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 0.85
Altman-Z -0.23
ROIC/WACCN/A
WACCN/A
LAR.CA Yearly LT Debt VS Equity VS FCFLAR.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M 800M

2.3 Liquidity

LAR has a Current Ratio of 4.72. This indicates that LAR is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 4.72, LAR is doing good in the industry, outperforming 73.98% of the companies in the same industry.
A Quick Ratio of 4.72 indicates that LAR has no problem at all paying its short term obligations.
LAR's Quick ratio of 4.72 is fine compared to the rest of the industry. LAR outperforms 74.47% of its industry peers.
Industry RankSector Rank
Current Ratio 4.72
Quick Ratio 4.72
LAR.CA Yearly Current Assets VS Current LiabilitesLAR.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

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2

3. Growth

3.1 Past

LAR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -100.88%.
EPS 1Y (TTM)-100.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%N/A

3.2 Future

The Earnings Per Share is expected to decrease by -53.68% on average over the next years. This is quite bad
LAR is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 135.84% yearly.
EPS Next Y-100.62%
EPS Next 2Y-41.57%
EPS Next 3Y-69.61%
EPS Next 5Y-53.68%
Revenue Next Year413.65%
Revenue Next 2Y240.77%
Revenue Next 3Y164.66%
Revenue Next 5Y135.84%

3.3 Evolution

LAR.CA Yearly Revenue VS EstimatesLAR.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2019 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B 1.5B
LAR.CA Yearly EPS VS EstimatesLAR.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 4 6 8

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for LAR. In the last year negative earnings were reported.
Also next year LAR is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
LAR.CA Price Earnings VS Forward Price EarningsLAR.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 -40

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, LAR is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 1.31
EV/EBITDA N/A
LAR.CA Per share dataLAR.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

4.3 Compensation for Growth

A cheap valuation may be justified as LAR's earnings are expected to decrease with -69.61% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-41.57%
EPS Next 3Y-69.61%

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0

5. Dividend

5.1 Amount

No dividends for LAR!.
Industry RankSector Rank
Dividend Yield N/A

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LITHIUM ARGENTINA AG

TSX:LAR (6/6/2025, 7:00:00 PM)

2.66

+0.02 (+0.76%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)05-14 2025-05-14/amc
Earnings (Next)N/A N/A
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap430.84M
Analysts74.29
Price Target6.4 (140.6%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-124.74%
Min EPS beat(2)-184.84%
Max EPS beat(2)-64.64%
EPS beat(4)1
Avg EPS beat(4)5034.2%
Min EPS beat(4)-239.78%
Max EPS beat(4)20626.1%
EPS beat(8)4
Avg EPS beat(8)2575.27%
EPS beat(12)5
Avg EPS beat(12)1657.74%
EPS beat(16)6
Avg EPS beat(16)1237.49%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-5.44%
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S N/A
P/FCF 1.31
P/OCF 1.29
P/B 0.38
P/tB 0.38
EV/EBITDA N/A
EPS(TTM)-0.1
EYN/A
EPS(NY)-0.05
Fwd EYN/A
FCF(TTM)2.03
FCFY76.35%
OCF(TTM)2.06
OCFY77.35%
SpS0
BVpS7.02
TBVpS7.02
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 111.6%
ROE 150.66%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM N/A
FCFM N/A
ROA(3y)36.07%
ROA(5y)22.94%
ROE(3y)45.44%
ROE(5y)29.94%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0
Health
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 0.85
Debt/EBITDA N/A
Cap/Depr 237.33%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 19.2%
Current Ratio 4.72
Quick Ratio 4.72
Altman-Z -0.23
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)441.15%
Cap/Depr(5y)2618.33%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-100.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
EPS Next Y-100.62%
EPS Next 2Y-41.57%
EPS Next 3Y-69.61%
EPS Next 5Y-53.68%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%N/A
Revenue Next Year413.65%
Revenue Next 2Y240.77%
Revenue Next 3Y164.66%
Revenue Next 5Y135.84%
EBIT growth 1Y24.77%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year7.4%
EBIT Next 3Y59.12%
EBIT Next 5Y48.39%
FCF growth 1Y425.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y461.36%
OCF growth 3YN/A
OCF growth 5YN/A