Allkem (ASX:AKE) - Share price, News & Analysis

AKE fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	5/6
Past Performance	0/6
Financial Health	3/6
Dividends	0/6

AKE Stock Overview

Allkem Limited engages in the exploration, development, and production of lithium and boron in Argentina.

Rewards

Earnings are forecast to grow 40.74% per year

Risk Analysis

Shareholders have been substantially diluted in the past year

Allkem Competitors

Mineral Resources

ASX:MIN

AU$11.2b

Lynas Rare Earths

ASX:LYC

AU$8.6b

Pilbara Minerals

ASX:PLS

AU$8.4b

IGO

ASX:IGO

AU$8.8b

Price History & Performance

Summary of all time highs, changes and price drops for Allkem
Historical stock prices
Current Share Price	AU$13.46
52 Week High	AU$14.27
52 Week Low	AU$5.45
Beta	1.76
1 Month Change	5.49%
3 Month Change	43.50%
1 Year Change	113.99%
3 Year Change	302.99%
5 Year Change	264.77%
Change since IPO	5,284.00%

Recent News & Updates

Mar 28

Is Allkem (ASX:AKE) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

	AKE	AU Metals and Mining	AU Market
7D	11.6%	4.4%	0.6%
1Y	114.0%	6.3%	0.5%

Return vs Industry: AKE exceeded the Australian Metals and Mining industry which returned 6.3% over the past year.

Return vs Market: AKE exceeded the Australian Market which returned 0.5% over the past year.

Price Volatility

Is AKE's price volatile compared to industry and market?
AKE volatility
AKE Average Weekly Movement	8.1%
Metals and Mining Industry Average Movement	11.0%
Market Average Movement	9.3%
10% most volatile stocks in AU Market	16.5%
10% least volatile stocks in AU Market	4.2%

Stable Share Price: AKE is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: AKE's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2005	n/a	Martin de Solay	https://www.allkem.co

Allkem Limited engages in the exploration, development, and production of lithium and boron in Argentina. The company’s flagship project is the Olaroz Lithium Facility located in Jujuy province in northern Argentina. Allkem Limited was incorporated in 2005 and is based in Brisbane, Australia.

Allkem Fundamentals Summary

How do Allkem's earnings and revenue compare to its market cap?
AKE fundamental statistics
Market Cap	US$5.88b
Earnings (TTM)	-US$24.07m
Revenue (TTM)	US$241.23m

25.3x

P/S Ratio

-253.5x

P/E Ratio

Is AKE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AKE income statement (TTM)
Revenue	US$241.23m
Cost of Revenue	US$85.88m
Gross Profit	US$155.35m
Other Expenses	US$179.42m
Earnings	-US$24.07m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.038
Gross Margin	64.40%
Net Profit Margin	-9.98%
Debt/Equity Ratio	12.1%

How did AKE perform over the long term?

See historical performance and comparison

New valuation analysis is now available for all ASX stocks. This is in beta.

Future Growth

How is Allkem forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

40.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AKE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.8%).

Earnings vs Market: AKE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AKE's is expected to become profitable in the next 3 years.

Revenue vs Market: AKE's revenue (26% per year) is forecast to grow faster than the Australian market (4.8% per year).

High Growth Revenue: AKE's revenue (26% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: AKE's Return on Equity is forecast to be low in 3 years time (16.3%).

Past Performance

How has Allkem performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-51.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AKE is currently unprofitable.

Growing Profit Margin: AKE is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: AKE is unprofitable, and losses have increased over the past 5 years at a rate of 51.2% per year.

Accelerating Growth: Unable to compare AKE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AKE is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (57.8%).

Return on Equity

High ROE: AKE has a negative Return on Equity (-1.72%), as it is currently unprofitable.

Financial Health

How is Allkem's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: AKE's short term assets ($560.6M) exceed its short term liabilities ($132.2M).

Long Term Liabilities: AKE's short term assets ($560.6M) do not cover its long term liabilities ($1.1B).

Debt to Equity History and Analysis

Debt Level: AKE has more cash than its total debt.

Reducing Debt: AKE's debt to equity ratio has increased from 0.9% to 12.1% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AKE has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if AKE has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

Dividend

What is Allkem current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.83%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate AKE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AKE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AKE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AKE's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AKE has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.9yrs

Average management tenure

CEO

Martin de Solay (51 yo)

3.5yrs

Tenure

US$1,190,148

Compensation

Mr. Martin Perez de Solay, (I.ENG), has been CEO and Managing Director of Allkem Limited (formerly known as Orocobre Limited) since November 23, 2018 and its Director since January 18, 2018. He is a qualif...

CEO Compensation Analysis

Compensation vs Market: Martin's total compensation ($USD1.19M) is below average for companies of similar size in the Australian market ($USD2.35M).

Compensation vs Earnings: Martin's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: AKE's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.

Board Members

Experienced Board: AKE's board of directors are considered experienced (3.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 85.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30