LARGO INC (LGO)
CA5170971017 - Common Stock
We assign a fundamental rating of 2 out of 10 to LGO. LGO was compared to 154 industry peers in the Metals & Mining industry. LGO may be in some trouble as it scores bad on both profitability and health. LGO has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
LGO had negative earnings in the past year.
LGO had a positive operating cash flow in the past year.
In multiple years LGO reported negative net income over the last 5 years.
Of the past 5 years LGO 4 years had a positive operating cash flow.
1.2 Ratios
LGO has a Return On Assets of -7.95%. This is in the lower half of the industry: LGO underperforms 69.48% of its industry peers.
LGO has a Return On Equity of -12.20%. This is in the lower half of the industry: LGO underperforms 66.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.95% | ||
| ROE | -12.2% | ||
| ROIC | N/A |
ROA(3y)-0.39%
ROA(5y)-1.29%
ROE(3y)-1.42%
ROE(5y)-2.29%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Gross Margin value of 12.40%, LGO perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
LGO's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for LGO so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 12.4% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-23.12%
GM growth 5Y-30.03%
2. Health
2.1 Basic Checks
LGO does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, LGO has about the same amount of shares outstanding.
LGO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for LGO is higher compared to a year ago.
2.2 Solvency
LGO has an Altman-Z score of 0.91. This is a bad value and indicates that LGO is not financially healthy and even has some risk of bankruptcy.
LGO has a Altman-Z score of 0.91. This is in the lower half of the industry: LGO underperforms 72.08% of its industry peers.
LGO has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of LGO (0.31) is worse than 61.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.91 |
ROIC/WACCN/A
WACC9.01%
2.3 Liquidity
A Current Ratio of 3.23 indicates that LGO has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.23, LGO is in the better half of the industry, outperforming 62.99% of the companies in the same industry.
LGO has a Quick Ratio of 1.78. This is a normal value and indicates that LGO is financially healthy and should not expect problems in meeting its short term obligations.
LGO has a Quick ratio (1.78) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.23 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
The earnings per share for LGO have decreased strongly by -2720.61% in the last year.
LGO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.36%.
Measured over the past years, LGO shows a very negative growth in Revenue. The Revenue has been decreasing by -13.16% on average per year.
EPS 1Y (TTM)-2720.61%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q12.58%
Revenue 1Y (TTM)-13.36%
Revenue growth 3Y17.78%
Revenue growth 5Y-13.16%
Revenue growth Q2Q-7.01%
3.2 Future
The Earnings Per Share is expected to grow by 52.86% on average over the next years. This is a very strong growth
Based on estimates for the next years, LGO will show a quite strong growth in Revenue. The Revenue will grow by 9.81% on average per year.
EPS Next Y29.69%
EPS Next 2Y52.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-9.31%
Revenue Next 2Y9.81%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LGO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for LGO. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LGO is valued a bit cheaper than 62.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.22 |
4.3 Compensation for Growth
LGO's earnings are expected to grow with 52.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y52.86%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LGO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LARGO INC
NASDAQ:LGO (5/3/2024, 7:03:26 PM)
1.67
+0.04 (+2.45%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap106.97M
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 | N/A | ||
| Fwd PE | N/A | ||
| 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)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.95% | ||
| ROE | -12.2% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 12.4% | ||
| 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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.23 | ||
| Quick Ratio | 1.78 | ||
| 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)-2720.61%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y29.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.36%
Revenue growth 3Y17.78%
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