ASX:LIT

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent 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

0%

LIT

-1.9%

AU Metals and Mining

1.9%

AU Market


1 Year Return

20.0%

LIT

9.4%

AU Metals and Mining

-10.0%

AU Market

Return vs Industry: LIT exceeded the Australian Metals and Mining industry which returned 9.4% over the past year.

Return vs Market: LIT exceeded the Australian Market which returned -10% over the past year.


Shareholder returns

LITIndustryMarket
7 Day0%-1.9%1.9%
30 Day3.8%-2.8%-1.9%
90 Day12.5%6.6%3.1%
1 Year20.0%20.0%14.5%9.4%-6.8%-10.0%
3 Year-59.6%-60.0%64.3%41.5%17.5%2.4%
5 Year-27.4%-28.0%141.2%94.9%43.6%13.4%

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?

1.08x

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 AU 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 (1.1x) compared to the AU Metals and Mining industry average (2.2x).


Next Steps

Future Growth

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

2.6%

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?

-40.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LIT is currently unprofitable.

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 40.4% 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 (15.3%).


Return on Equity

High ROE: LIT has a negative Return on Equity (-33.37%), as it is currently unprofitable.


Next Steps

Financial Health

How is Lithium Australia's financial position?


Financial Position Analysis

Short Term Liabilities: LIT's short term assets (A$7.2M) exceed its short term liabilities (A$2.8M).

Long Term Liabilities: LIT's short term assets (A$7.2M) exceed its long term liabilities (A$844.6K).


Debt to Equity History and Analysis

Debt Level: LIT's debt to equity ratio (1.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if LIT's debt to equity ratio has reduced 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: LIT has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: LIT is forecast to have sufficient cash runway for 9 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate LIT'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 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

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

9.7yrs

Average board tenure


CEO

Adrian Griffin (67 yo)

9.67yrs

Tenure

AU$634,860

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Adrian's total compensation ($USD448.03K) is above average for companies of similar size in the Australian market ($USD274.37K).

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


Board Members

NamePositionTenureCompensationOwnership
Adrian Griffin
MD & Director9.67yrsAU$634.86k2.13%
A$ 877.8k
Bryan Garrie Dixon
Independent Non-Executive Director10.75yrsAU$126.54k0.062%
A$ 25.6k
George Bauk
Independent Non-Executive Chairman5.17yrsAU$156.54k0.27%
A$ 109.7k

9.7yrs

Average Tenure

50yo

Average Age

Experienced Board: LIT's board of directors are considered experienced (9.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LIT insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 48.3%.


Top Shareholders

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$41.198m
  • Shares outstanding: 792.27m
  • 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
LITCFASX (Australian Securities Exchange)SHSAUAUDMar 2020
LITCFCHIA (Chi-X Australia)SHSAUAUDMar 2020

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 Analysis2020/09/29 10:34
End of Day Share Price2020/09/29 00:00
Earnings2019/12/31
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.