Largo Resources Ltd. operates as a natural resource development and exploration company in Brazil and Canada.
Share Price & News
How has Largo Resources's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LGO is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: LGO's weekly volatility (7%) has been stable over the past year.
7 Day Return
CA Metals and Mining
1 Year Return
CA Metals and Mining
Return vs Industry: LGO exceeded the Canadian Metals and Mining industry which returned -10.4% over the past year.
Return vs Market: LGO exceeded the Canadian Market which returned 30% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Largo Resources's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall StLargo Resources (TSE:LGO) Seems To Use Debt Rather Sparingly
1 month ago | Simply Wall StReturns On Capital Are Showing Encouraging Signs At Largo Resources (TSE:LGO)
2 months ago | Simply Wall StDo Fundamentals Have Any Role To Play In Driving Largo Resources Ltd.'s (TSE:LGO) Stock Up Recently?
Largo Resources Fundamentals Summary
|LGO fundamental statistics|
Is LGO overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|LGO income statement (TTM)|
|Cost of Revenue||US$115.72m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||0.37|
|Net Profit Margin||13.44%|
How did LGO perform over the long term?See historical performance and comparison
Is Largo Resources undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LGO (CA$16.22) is trading below our estimate of fair value (CA$35.08)
Significantly Below Fair Value: LGO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LGO is poor value based on its PE Ratio (37.5x) compared to the Canadian Metals and Mining industry average (11.3x).
PE vs Market: LGO is poor value based on its PE Ratio (37.5x) compared to the Canadian market (12.9x).
Price to Earnings Growth Ratio
PEG Ratio: LGO is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: LGO is overvalued based on its PB Ratio (3.1x) compared to the CA Metals and Mining industry average (2.5x).
How is Largo Resources forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LGO's forecast earnings growth (47.3% per year) is above the savings rate (1.5%).
Earnings vs Market: LGO's earnings (47.3% per year) are forecast to grow faster than the Canadian market (12.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LGO's revenue (9.9% per year) is forecast to grow faster than the Canadian market (6.1% per year).
High Growth Revenue: LGO's revenue (9.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LGO's Return on Equity is forecast to be low in 3 years time (18.6%).
How has Largo Resources performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LGO has high quality earnings.
Growing Profit Margin: LGO became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: LGO has become profitable over the past 5 years, growing earnings by 20.8% per year.
Accelerating Growth: LGO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: LGO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (116%).
Return on Equity
High ROE: LGO's Return on Equity (8.2%) is considered low.
How is Largo Resources's financial position?
Financial Position Analysis
Short Term Liabilities: LGO's short term assets ($152.3M) exceed its short term liabilities ($39.8M).
Long Term Liabilities: LGO's short term assets ($152.3M) exceed its long term liabilities ($8.3M).
Debt to Equity History and Analysis
Debt Level: LGO's debt to equity ratio (5.6%) is considered satisfactory.
Reducing Debt: LGO's debt to equity ratio has reduced from 457.9% to 5.6% over the past 5 years.
Debt Coverage: LGO's debt is well covered by operating cash flow (173.1%).
Interest Coverage: LGO's interest payments on its debt are well covered by EBIT (39.5x coverage).
What is Largo Resources's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate LGO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate LGO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if LGO's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if LGO's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of LGO's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Paulo Misk (58 yo)
Mr. Paulo Guimarães Misk serves as Chief Executive Officer and Director of Largo Resources Ltd. since September 8, 2019. Mr. Misk is the President of Largo Resources Ltd.since October 2018 and served as i...
CEO Compensation Analysis
Compensation vs Market: Paulo's total compensation ($USD1.78M) is above average for companies of similar size in the Canadian market ($USD1.14M).
Compensation vs Earnings: Paulo's compensation has been consistent with company performance over the past year.
Experienced Management: LGO's management team is considered experienced (3.7 years average tenure).
Experienced Board: LGO's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LGO insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.7%.
Largo Resources Ltd.'s company bio, employee growth, exchange listings and data sources
- Name: Largo Resources Ltd.
- Ticker: LGO
- Exchange: TSX
- Founded: 1988
- Industry: Diversified Metals and Mining
- Sector: Materials
- Market Cap: CA$1.081b
- Shares outstanding: 64.68m
- Website: https://www.largoresources.com
Number of Employees
- Largo Resources Ltd.
- 55 University Avenue
- Suite 1105
- M5J 2H7
Largo Resources Ltd. operates as a natural resource development and exploration company in Brazil and Canada. It explores for vanadium, iron, tungsten, and molybdenum deposits. The company’s principal oper...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/16 22:52|
|End of Day Share Price||2021/09/16 00:00|
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.