ASX:LIT

Stock Analysis Report

Executive Summary

Lithium Australia NL engages in the acquisition, exploration, and development of mineral properties, primarily lithium.

Snowflake

Adequate balance sheet and overvalued.

Share Price & News

How has Lithium Australia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LIT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.6%

LIT

0.9%

AU Metals and Mining

0.7%

AU Market


1 Year Return

-65.6%

LIT

16.1%

AU Metals and Mining

17.7%

AU Market

Return vs Industry: LIT underperformed the Australian Metals and Mining industry which returned 16.1% over the past year.

Return vs Market: LIT underperformed the Australian Market which returned 17.7% over the past year.


Shareholder returns

LITIndustryMarket
7 Day-8.6%0.9%0.7%
30 Day-30.4%5.1%2.0%
90 Day-36.0%3.2%4.9%
1 Year-65.3%-65.6%24.6%16.1%24.5%17.7%
3 Year-81.0%-81.2%58.1%36.2%40.5%21.3%
5 Year-26.6%-27.3%85.3%41.3%57.1%22.1%

Price Volatility Vs. Market

How volatile is Lithium Australia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lithium Australia undervalued compared to its fair value and its price relative to the market?

0.56x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate LIT's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate LIT's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: LIT is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: LIT is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LIT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LIT is good value based on its PB Ratio (0.6x) compared to the AU Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Lithium Australia forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.3%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Lithium Australia has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Lithium Australia performed over the past 5 years?

-41.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LIT has high quality earnings.

Growing Profit Margin: LIT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LIT is unprofitable, and losses have increased over the past 5 years at a rate of -41.6% per year.

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

Earnings vs Industry: LIT is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (7.8%).


Return on Equity

High ROE: LIT has a negative Return on Equity (-42.19%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lithium Australia's financial position?


Financial Position Analysis

Short Term Liabilities: LIT's short term assets (A$4.1M) exceeds its short term liabilities (A$1.6M)

Long Term Liabilities: LIT has no long term liabilities


Debt to Equity History and Analysis

Debt Level: LIT is debt free.

Reducing Debt: LIT had no debt 5 years ago.


Balance Sheet

Inventory Level: LIT has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if LIT's debt is covered by short term assets.


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: LIT has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: LIT has less than a year of cash runway if free cash flow continues to reduce at historical rates of -33.1% each year


Next Steps

Dividend

What is Lithium Australia's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.6%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LIT's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of Lithium Australia's salary, the management and board of directors tenure and is there insider trading?

8.8yrs

Average board tenure


CEO

Adrian Griffin (66yo)

8.8yrs

Tenure

AU$634,860

Compensation

Mr. Adrian Christopher Griffin, BSc (Hons), MAusIMM, M GSA, has been the Managing Director and Executive Director of Lithium Australia NL (formerly, Midwinter Resources NL) since February 1, 2011. Mr. Grif ...


CEO Compensation Analysis

Compensation vs Market: Adrian's total compensation ($USD433.47K) is above average for companies of similar size in the Australian market ($USD255.44K).

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


Board Age and Tenure

8.8yrs

Average Tenure

49yo

Average Age

Experienced Board: LIT's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

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


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 31.1%.


Management Team

  • Adrian Griffin (66yo)

    MD & Director

    • Tenure: 8.8yrs
    • Compensation: AU$634.86k
  • Barry Woodhouse

    CFO & Company Secretary

    • Tenure: 4.3yrs
    • Compensation: AU$345.78k

Board Members

  • Adrian Griffin (66yo)

    MD & Director

    • Tenure: 8.8yrs
    • Compensation: AU$634.86k
  • Bryan Garrie Dixon (47yo)

    Non-Executive Director

    • Tenure: 9.9yrs
    • Compensation: AU$126.54k
  • George Bauk (49yo)

    Non-Executive Chairman

    • Tenure: 4.3yrs
    • Compensation: AU$156.54k

Company Information

Lithium Australia NL's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lithium Australia NL
  • Ticker: LIT
  • Exchange: ASX
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$17.631m
  • Shares outstanding: 534.27m
  • Website: https://www.lithium-au.com

Location

  • Lithium Australia NL
  • 675 Murray Street
  • Level 1
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LITASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2007
LITCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2007
LMMF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2007
3MWDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2007
LITCEASX (Australian Securities Exchange)Partly Paid Shares 25 CentsAUAUDAug 2016

Biography

Lithium Australia NL engages in the acquisition, exploration, and development of mineral properties, primarily lithium. It operates through Tenement exploration and evaluation; and Processing Technology se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 10:36
End of Day Share Price2019/11/19 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.