TSX:LAC

Stock Analysis Report

Lithium Americas

Executive Summary

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

Snowflake

Fundamentals

High growth potential with mediocre balance sheet.


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


Market Performance


7 Day Return

-1.1%

TSX:LAC

0.08%

CA Metals and Mining

1.0%

CA Market


1 Year Return

-15.4%

TSX:LAC

20.3%

CA Metals and Mining

-5.0%

CA Market

LAC underperformed the Metals and Mining industry which returned 19.8% over the past year.

LAC underperformed the Market in Canada which returned -4.1% over the past year.


Share holder returns

LACIndustryMarket
7 Day-1.1%0.08%1.0%
30 Day-11.5%-0.9%-2.8%
90 Day-12.7%24.4%-1.7%
1 Year-15.4%-15.4%21.2%20.3%-1.7%-5.0%
3 Year-1.1%-1.1%-8.9%-10.6%14.7%4.4%
5 Year55.9%55.9%-8.6%-12.0%12.5%-3.3%

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 based on future cash flows and its price relative to the stock market?

47%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Lithium Americas's share price is below the future cash flow value, and at a moderate discount (> 20%).

Lithium Americas's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Lithium Americas is loss making, we can't compare its value to the CA Metals and Mining industry average.

Lithium Americas is loss making, we can't compare the value of its earnings to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Lithium Americas, we can't assess if its growth is good value.


Price Based on Value of Assets

Lithium Americas is overvalued based on assets compared to the CA Metals and Mining industry average.


Next Steps

Future Growth

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

54.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Lithium Americas's revenue is expected to grow significantly at over 20% yearly.

Lithium Americas's earnings are expected to grow significantly at over 20% yearly.

Lithium Americas's revenue growth is expected to exceed the Canada market average.

Lithium Americas's earnings growth is expected to exceed the Canada market average.

Lithium Americas's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Lithium Americas will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Lithium Americas performed over the past 5 years?

-36.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Lithium Americas does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Lithium Americas's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Lithium Americas's 1-year growth to the CA Metals and Mining industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Lithium Americas has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Lithium Americas has efficiently used its assets last year compared to the CA Metals and Mining industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Lithium Americas improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Lithium Americas's financial position?


Financial Position Analysis

Lithium Americas is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Lithium Americas's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Lithium Americas's level of debt (113.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (5.5% vs 113.7% today).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.4x 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.

Lithium Americas has sufficient cash runway for 1.4 years based on current free cash flow.

Lithium Americas has sufficient cash runway for 1.4 years if free cash flow continues to grow at historical rates of 28.8% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Lithium Americas's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Lithium Americas's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Lithium Americas has not reported any payouts.

Unable to verify if Lithium Americas's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Lithium Americas has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Jon Evans (48yo)

0.3yrs

Tenure

US$1,498,426

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

Jon's remuneration is higher than average for companies of similar size in Canada.

Jon's compensation has increased whilst company is loss making.


Management Age and Tenure

1.0yrs

Average Tenure

48yo

Average Age

The average tenure for the Lithium Americas management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.2yrs

Average Tenure

53yo

Average Age

The average tenure for the Lithium Americas board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Lithium Americas individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUS$463,32021 Aug 19
Bangchak Corporation Public Company Limited
EntityCompany
Shares100,000
Max PriceUS$4.63
BuyUS$19,99027 Jun 19
Jonathan Evans
EntityIndividual
Role
Chief Executive Officer
President
Shares4,000
Max PriceUS$5.00
BuyUS$57,32923 May 19
Jonathan Evans
EntityIndividual
Role
Chief Executive Officer
President
Shares11,000
Max PriceUS$5.21
BuyUS$53,81625 Apr 19
Gabriel Rubacha
EntityIndividual
Role
Member of the Board of Directors
President of South American Operations & Director
Shares10,000
Max PriceUS$5.38
BuyUS$57,97803 Apr 19
Jonathan Evans
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceUS$5.80
BuyUS$194,67401 Jan 19
George Ireland
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares50,000
Max PriceUS$3.95
BuyUS$440,47221 Dec 18
John Kanellitsas
EntityIndividual
Role
Vice Chairman
Executive Vice Chairman
Shares100,000
Max PriceUS$4.76
BuyUS$22,62630 Oct 18
Gabriel Rubacha
EntityIndividual
Role
Member of the Board of Directors
President of South American Operations & Director
Shares5,000
Max PriceUS$4.53
BuyUS$118,14829 Oct 18
John Kanellitsas
EntityIndividual
Role
Vice Chairman
Executive Vice Chairman
Shares25,000
Max PriceUS$4.73
BuyUS$45,03317 Oct 18
Jonathan Evans
EntityIndividual
Role
Chief Executive Officer
President
Shares8,500
Max PriceUS$5.30
BuyUS$43,54510 Oct 18
Gabriel Rubacha
EntityIndividual
Role
Member of the Board of Directors
President of South American Operations & Director
Shares8,000
Max PriceUS$5.44
BuyUS$34,53809 Oct 18
Jonathan Evans
EntityIndividual
Role
Chief Executive Officer
President
Shares6,500
Max PriceUS$5.31
BuyUS$314,06121 Sep 18
George Ireland
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares55,000
Max PriceUS$5.71
BuyUS$241,82420 Sep 18
George Ireland
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares45,000
Max PriceUS$5.37
BuyUS$257,78019 Sep 18
George Ireland
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares50,000
Max PriceUS$5.16

Ownership Breakdown


Management Team

  • Tom Hodgson (66yo)

    Consultant

    • Tenure: 0.3yrs
    • Compensation: US$1.04m
  • Eduard Epshtein (44yo)

    Chief Financial Officer

    • Tenure: 11.3yrs
    • Compensation: US$483.89k
  • Jon Evans (48yo)

    President

    • Tenure: 0.3yrs
    • Compensation: US$1.50m
  • Alexi Zawadzki (47yo)

    President of North American Operations

    • Tenure: 2.0yrs
    • Compensation: US$784.37k
  • John Kanellitsas (57yo)

    Executive Vice Chairman

    • Tenure: 3.8yrs
    • Compensation: US$1.04m
  • Dennis Bryan

    Senior Vice President of Development

    • Tenure: 10.8yrs
    • Compensation: US$310.51k
  • Franco Mignacco (37yo)

    President of Minera Exar & Director

    • Tenure: 3.9yrs
  • Alec Meikle

    Vice President of Corporate Development

    • Tenure: 1.0yrs
  • Gabriel Rubacha (53yo)

    President of South American Operations & Director

    • Tenure: 3.4yrs
    • Compensation: US$918.76k
  • Rene LeBlanc

    Chief Technical Officer

    • Tenure: 1.0yrs

Board Members

  • George Ireland (62yo)

    Non-Executive Chairman

    • Tenure: 3.4yrs
    • Compensation: US$161.00k
  • Gary Cohn (58yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$121.00k
  • Jon Evans (48yo)

    President

    • Tenure: 0.3yrs
    • Compensation: US$1.50m
  • John Kanellitsas (57yo)

    Executive Vice Chairman

    • Tenure: 3.8yrs
    • Compensation: US$1.04m
  • Franco Mignacco (37yo)

    President of Minera Exar & Director

    • Tenure: 3.9yrs
  • Graham Thompson

    Member of Advisory Committee

    • Tenure: 0.0yrs
  • Fabi Chubbs (53yo)

    Director

    • Tenure: 0.2yrs
  • Xiaoshen Wang (51yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$92.50k
  • Chaiwat Kovavisarach (52yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$92.50k
  • Gabriel Rubacha (53yo)

    President of South American Operations & Director

    • Tenure: 3.4yrs
    • Compensation: US$918.76k

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$409.635m
  • Shares outstanding: 89.05m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 00:09
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
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.