TSX:LAC

Stock Analysis Report

Lithium Americas

Executive Summary

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


Snowflake Analysis

High growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.7%

LAC

4.7%

CA Metals and Mining

0.1%

CA Market


1 Year Return

40.6%

LAC

5.4%

CA Metals and Mining

4.5%

CA Market

Return vs Industry: LAC exceeded the Canadian Metals and Mining industry which returned 5.2% over the past year.

Return vs Market: LAC exceeded the Canadian Market which returned 4.7% over the past year.


Shareholder returns

LACIndustryMarket
7 Day-3.7%4.7%0.1%
30 Day32.8%4.2%0.9%
90 Day84.6%14.1%3.7%
1 Year40.6%40.6%6.0%5.4%7.8%4.5%
3 Year31.3%31.3%0.2%-1.5%18.2%7.5%
5 Year98.9%98.9%26.6%22.9%33.7%14.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LAC (CA$6.96) is trading above our estimate of fair value (CA$6.06)

Significantly Below Fair Value: LAC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LAC is good value based on its PE Ratio (9.7x) compared to the Metals and Mining industry average (17.4x).

PE vs Market: LAC is good value based on its PE Ratio (9.7x) compared to the Canadian market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: LAC is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: LAC is overvalued based on its PB Ratio (2.9x) compared to the CA Metals and Mining industry average (1.6x).


Next Steps

Future Growth

How is Lithium Americas forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

54.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAC's forecast earnings growth (54% per year) is above the savings rate (1.4%).

Earnings vs Market: LAC's earnings (54% per year) are forecast to grow faster than the Canadian market (10.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LAC's revenue (51.6% per year) is forecast to grow faster than the Canadian market (4.7% per year).

High Growth Revenue: LAC's revenue (51.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LAC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Lithium Americas performed over the past 5 years?

-10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LAC has a high level of non-cash earnings.

Growing Profit Margin: LAC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LAC has become profitable over the past 5 years, growing earnings by -10% per year.

Accelerating Growth: LAC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LAC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.9%).


Return on Equity

High ROE: LAC's Return on Equity (29.3%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lithium Americas's financial position?


Financial Position Analysis

Short Term Liabilities: LAC's short term assets ($114.2M) exceed its short term liabilities ($11.3M).

Long Term Liabilities: LAC's short term assets ($114.2M) do not cover its long term liabilities ($116.1M).


Debt to Equity History and Analysis

Debt Level: LAC's debt to equity ratio (70%) is considered high.

Reducing Debt: LAC's debt to equity ratio has increased from 6.3% to 70% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: LAC's debt is not covered by short term assets (assets are 1x debt).


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 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: LAC is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


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 payouts.

High Dividend: Unable to evaluate LAC'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 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.


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 LAC's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Jon Evans (48yo)

0.8yrs

Tenure

US$541,850

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD541.85K) is below average for companies of similar size in the Canadian market ($USD966.52K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jonathan Evans
President0.8yrsUS$541.85k0.089% $556.8k
John Kanellitsas
Executive Vice Chairman4.3yrsUS$1.04m1.54% $9.6m
Eduard Epshtein
Chief Financial Officer11.8yrsUS$483.89k0.97% $6.0m
Gabriel Rubacha
President of South American Operations & Director3.9yrsUS$918.76k0.25% $1.5m
Alexi Zawadzki
President of North American Operations2.5yrsUS$784.37k0.42% $2.7m
Franco Mignacco
President of Minera Exar & Director4.4yrsno data1.67% $10.4m
William Hodgson
Consultant0.8yrsUS$1.04m0.093% $581.2k
Rene LeBlanc
Chief Technical Officer1.5yrsno data0.044% $277.3k
Alexander Meikle
Vice President of Corporate Development1.5yrsno datano data
Dennis Bryan
Senior Vice President of Development11.3yrsUS$206.50kno data

2.0yrs

Average Tenure

48yo

Average Age

Experienced Management: LAC's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jonathan Evans
President0.8yrsUS$541.85k0.089% $556.8k
John Kanellitsas
Executive Vice Chairman4.3yrsUS$1.04m1.54% $9.6m
Gabriel Rubacha
President of South American Operations & Director3.9yrsUS$918.76k0.25% $1.5m
Franco Mignacco
President of Minera Exar & Director4.4yrsno data1.67% $10.4m
George Ireland
Non-Executive Chairman3.9yrsUS$161.00k7.95% $49.7m
Gary Cohn
Independent Director2.7yrsUS$121.00k0.047% $291.6k
Graham Thompson
Member of Advisory Committee0yrsno datano data
Fabiana Chubbs
Independent Director0.7yrsno datano data
Xiaoshen Wang
Independent Director2.7yrsUS$92.50kno data
Chaiwat Kovavisarach
Independent Director2.6yrsUS$92.50k0.13% $835.2k

2.7yrs

Average Tenure

53yo

Average Age

Experienced Board: LAC's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lithium Americas Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lithium Americas Corp.
  • Ticker: LAC
  • Exchange: TSX
  • Founded: 2007
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$625.309m
  • Shares outstanding: 89.84m
  • Website: https://www.lithiumamericas.com

Number of Employees


Location

  • Lithium Americas Corp.
  • 900 West Hastings Street
  • Suite 300
  • Vancouver
  • British Columbia
  • V6C 1E5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LACTSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 2008
WUC1DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2008
LACNYSE (New York Stock Exchange)YesCommon SharesUSUSDJul 2008

Biography

Lithium Americas Corp. operates as a resource company in the United States. The company explores for lithium deposits. It primarily holds interests in the Cauchari-Olaroz Project located in Jujuy province of Argentina; and owns a 100% interest in the Thacker Pass lithium project located in north-western Nevada. The company also manufactures and sells specialty organoclay products for the use in oil and gas industry as specialty viscosifier additives for drilling fluids, as well as in other sectors. The company was formerly known as Western Lithium USA Corporation and changed its name to Lithium Americas Corp. in March 2016. Lithium Americas Corp. was incorporated in 2007 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 02:23
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.