Lithium Americas (TSX:LAC) - Share price, News & Analysis

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

LAC Stock Overview

Lithium Americas Corp. operates as a resource company in the United States and Argentina.

Rewards

Earnings are forecast to grow 111.81% per year

Risk Analysis

Makes less than USD$1m in revenue ($0)

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year

Lithium Americas Competitors

Critical Elements Lithium

TSXV:CRE

CA$292.8m

Sociedad Química y Minera de Chile

NYSE:SQM

US$28.6b

Albemarle

NYSE:ALB

US$28.5b

Tianqi Lithium

SZSE:002466

CN¥142.4b

Price History & Performance

Summary of all time highs, changes and price drops for Lithium Americas
Historical stock prices
Current Share Price	CA$31.66
52 Week High	CA$53.09
52 Week Low	CA$16.03
Beta	1.59
1 Month Change	-7.56%
3 Month Change	-3.27%
1 Year Change	94.35%
3 Year Change	476.69%
5 Year Change	580.86%
Change since IPO	644.94%

Shareholder Returns

	LAC	CA Metals and Mining	CA Market
7D	2.1%	2.3%	-0.7%
1Y	94.4%	-6.3%	5.2%

Return vs Industry: LAC exceeded the Canadian Metals and Mining industry which returned -7.4% over the past year.

Return vs Market: LAC exceeded the Canadian Market which returned 4.8% over the past year.

Price Volatility

Is LAC's price volatile compared to industry and market?
LAC volatility
LAC Average Weekly Movement	12.5%
Metals and Mining Industry Average Movement	10.8%
Market Average Movement	9.8%
10% most volatile stocks in CA Market	16.9%
10% least volatile stocks in CA Market	4.3%

Stable Share Price: LAC is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: LAC's weekly volatility (13%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2007	351	Jon Evans	https://www.lithiumamericas.com

Lithium Americas Corp. operates as a resource company in the United States and Argentina. The company explores for lithium deposits. It owns interests in the Cauchari-Olaroz project located in Jujuy province of Argentina; Thacker Pass project located in north-western Nevada; and Pastos Grandes project located in the Salta province of Argentina.

Lithium Americas Fundamentals Summary

How do Lithium Americas's earnings and revenue compare to its market cap?
LAC fundamental statistics
Market Cap	US$3.31b
Earnings (TTM)	-US$74.70m
Revenue (TTM)	n/a

0.0x

P/S Ratio

-44.3x

P/E Ratio

Is LAC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LAC income statement (TTM)
Revenue	US$0
Cost of Revenue	US$0
Gross Profit	US$0
Other Expenses	US$74.70m
Earnings	-US$74.70m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.56
Gross Margin	0.00%
Net Profit Margin	0.00%
Debt/Equity Ratio	35.1%

How did LAC perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate LAC's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate LAC's fair value for valuation analysis.

Price To Earnings Ratio

PE vs Industry: LAC is unprofitable, so we can't compare its Price-To-Earnings Ratio to the Canadian Metals and Mining industry average.

PE vs Market: LAC is unprofitable, so we can't compare its Price-To-Earnings Ratio to the Canadian market.

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: LAC is overvalued based on its Price-To-Book Ratio (4x) compared to the CA Metals and Mining industry average (2x).

Future Growth

How is Lithium Americas forecast to perform in the next 1 to 3 years based on estimates from 8 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

111.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

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

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

Revenue vs Market: LAC's revenue (46.6% per year) is forecast to grow faster than the Canadian market (6.4% per year).

High Growth Revenue: LAC's revenue (46.6% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: LAC's Return on Equity is forecast to be low in 3 years time (17.6%).

Past Performance

How has Lithium Americas 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

-10.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LAC is currently unprofitable.

Growing Profit Margin: LAC is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: LAC is unprofitable, and losses have increased over the past 5 years at a rate of 10.5% per year.

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

Earnings vs Industry: LAC is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-1.3%).

Return on Equity

High ROE: LAC has a negative Return on Equity (-9.02%), as it is currently unprofitable.

Financial Health

How is Lithium Americas's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: LAC's short term assets ($498.4M) exceed its short term liabilities ($9.7M).

Long Term Liabilities: LAC's short term assets ($498.4M) exceed its long term liabilities ($298.7M).

Debt to Equity History and Analysis

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

Reducing Debt: LAC's debt to equity ratio has increased from 2% to 35.1% 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: LAC has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: LAC has sufficient cash runway for 2.2 years if free cash flow continues to reduce at historical rates of 34.1% each year.

Dividend

What is Lithium Americas's 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

Dividend Yield vs Market

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

High Dividend: Unable to evaluate LAC'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 LAC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LAC'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 LAC has not reported any payouts.

Discover strong dividend paying companies

Management

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

3.8yrs

Average management tenure

CEO

Jon Evans (50 yo)

3.75yrs

Tenure

US$1,337,610

Compensation

Mr. Jonathan D. Evans, also known as Jon, has been Chief Executive Officer at Lithium Americas Corp. since May 2019, has been its President since September 2018, and has been its Director since June 2017....

CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD1.34M) is below average for companies of similar size in the Canadian market ($USD3.45M).

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

Leadership Team

Experienced Management: LAC's management team is considered experienced (3.8 years average tenure).

Board Members

Experienced Board: LAC's board of directors are considered experienced (4.9 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: LAC insiders have only sold shares 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 12.2%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31