TSX:LAC

Stock Analysis Report

Lithium Americas

Executive Summary

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

Snowflake

Fundamentals

Slightly overvalued with limited growth.


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

-1.7%

LAC

0.1%

CA Metals and Mining

-0.2%

CA Market


1 Year Return

-22.1%

LAC

12.3%

CA Metals and Mining

1.1%

CA Market

Return vs Industry: LAC underperformed the Canadian Metals and Mining industry which returned 12.3% over the past year.

Return vs Market: LAC underperformed the Canadian Market which returned 1.1% over the past year.


Shareholder returns

LACIndustryMarket
7 Day-1.7%0.1%-0.2%
30 Day-7.1%-5.2%-3.3%
90 Day-22.9%-4.8%-1.6%
1 Year-22.1%-22.1%13.2%12.3%4.6%1.1%
3 Year-3.7%-3.7%-11.5%-13.1%13.1%3.1%
5 Year-2.5%-2.5%7.5%3.4%24.7%6.7%

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?

48.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: LAC (CA$3.95) is trading below our estimate of fair value (CA$7.66)

Significantly Undervalued: LAC is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

Low 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 PB Ratio (3.6x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

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

50.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: LAC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: LAC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: LAC's revenue (56.8% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: LAC's revenue (56.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

-36.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LAC is unprofitable, and losses have increased over the past 5 years at a rate of -36.4% 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 (-13.7%).


Return on Equity

High ROE: LAC has a negative Return on Equity (-37.52%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: LAC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: LAC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Lithium Americas's financial position?


Financial Position Analysis

Short Term Liabilities: LAC's short term assets ($36.4M) exceeds its short term liabilities ($4.6M)

Long Term Liabilities: LAC's short term assets (36.4M) do not cover its long term liabilities (85.2M)


Debt to Equity History and Analysis

Debt Level: LAC's debt to equity ratio (113.7%) is considered high

Reducing Debt: LAC's debt to equity ratio has increased from 5.5% to 113.7% over the past 5 years.


Balance Sheet

Inventory Level: LAC has a low level of unsold assets or inventory.

Debt Coverage by Assets: LAC's 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.

Stable Cash Runway: LAC has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: LAC has less than a year of cash runway if free cash flow continues to reduce 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 vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

1.2yrs

Average management tenure


CEO

Jon Evans (48yo)

0.4yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Canadian market.

Compensation vs Earnings: Jon's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.2yrs

Average Tenure

48yo

Average Age

Experienced Management: LAC's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

53yo

Average Age

Experienced Board: LAC's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$235,43822 Aug 19
Bangchak Corporation Public Company Limited
EntityCompany
Shares50,900
Max PriceUS$4.63
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

Ownership Breakdown


Management Team

  • Tom Hodgson (66yo)

    Consultant

    • Tenure: 0.4yrs
    • Compensation: US$1.04m
  • Eduard Epshtein (44yo)

    Chief Financial Officer

    • Tenure: 11.4yrs
    • Compensation: US$483.89k
  • Jon Evans (48yo)

    President

    • Tenure: 0.4yrs
    • Compensation: US$541.85k
  • Alexi Zawadzki (47yo)

    President of North American Operations

    • Tenure: 2.2yrs
    • Compensation: US$784.37k
  • John Kanellitsas (57yo)

    Executive Vice Chairman

    • Tenure: 3.9yrs
    • Compensation: US$1.04m
  • Dennis Bryan

    Senior Vice President of Development

    • Tenure: 11yrs
    • Compensation: US$206.50k
  • Franco Mignacco (37yo)

    President of Minera Exar & Director

    • Tenure: 4.1yrs
  • Alec Meikle

    Vice President of Corporate Development

    • Tenure: 1.2yrs
  • Gabriel Rubacha (53yo)

    President of South American Operations & Director

    • Tenure: 3.6yrs
    • Compensation: US$918.76k
  • Rene LeBlanc

    Chief Technical Officer

    • Tenure: 1.2yrs

Board Members

  • George Ireland (62yo)

    Non-Executive Chairman

    • Tenure: 3.6yrs
    • Compensation: US$161.00k
  • Gary Cohn (58yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$121.00k
  • Jon Evans (48yo)

    President

    • Tenure: 0.4yrs
    • Compensation: US$541.85k
  • John Kanellitsas (57yo)

    Executive Vice Chairman

    • Tenure: 3.9yrs
    • Compensation: US$1.04m
  • Franco Mignacco (37yo)

    President of Minera Exar & Director

    • Tenure: 4.1yrs
  • Graham Thompson

    Member of Advisory Committee

    • Tenure: 0yrs
  • Fabi Chubbs (53yo)

    Independent Director

    • Tenure: 0.3yrs
  • Xiaoshen Wang (51yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$92.50k
  • Chaiwat Kovavisarach (52yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$92.50k
  • Gabriel Rubacha (53yo)

    President of South American Operations & Director

    • Tenure: 3.6yrs
    • 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$351.751m
  • 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 Analysis2019/10/19 23:59
End of Day Share Price2019/10/18 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.