TSX:NMX

Stock Analysis Report

Executive Summary

Nemaska Lithium Inc. operates as a developing chemical company in Canada.

Risk Analysis

Earnings have declined by -88.81% per year over past 5 years

Shares are highly illiquid

Currently unprofitable and not forecast to become profitable over the next 3 years

Has less than 1 year of cash runway

+ 2 more risks


Snowflake Analysis

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

NMX

4.6%

CA Metals and Mining

0.2%

CA Market


1 Year Return

-44.1%

NMX

4.5%

CA Metals and Mining

4.9%

CA Market

Return vs Industry: NMX underperformed the Canadian Metals and Mining industry which returned 4.5% over the past year.

Return vs Market: NMX underperformed the Canadian Market which returned 4.9% over the past year.


Shareholder returns

NMXIndustryMarket
7 Day0%4.6%0.2%
30 Day0%3.7%0.4%
90 Day0%10.7%3.7%
1 Year-44.1%-44.1%5.1%4.5%8.2%4.9%
3 Year-88.0%-88.0%-5.4%-7.0%15.9%5.5%
5 Year-8.3%-8.3%26.4%22.6%33.8%14.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.56x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate NMX's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate NMX's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NMX is good value based on its PB Ratio (0.6x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Nemaska Lithium forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

15.8%

Forecasted Materials industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if NMX's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if NMX's earnings are forecast to grow faster than the Canadian market

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

Revenue vs Market: Insufficient data to determine if NMX's revenue is forecast to grow faster than the Canadian market.

High Growth Revenue: Insufficient data to determine if NMX's revenue 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 NMX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Nemaska Lithium performed over the past 5 years?

-88.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NMX is currently unprofitable.

Growing Profit Margin: NMX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NMX is unprofitable, and losses have increased over the past 5 years at a rate of -88.8% per year.

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

Earnings vs Industry: NMX is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (10.1%).


Return on Equity

High ROE: NMX has a negative Return on Equity (-140.07%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nemaska Lithium's financial position?


Financial Position Analysis

Short Term Liabilities: NMX's short term assets (CA$135.4M) do not cover its short term liabilities (CA$241.9M).

Long Term Liabilities: NMX's short term assets (CA$135.4M) exceed its long term liabilities (CA$30.8M).


Debt to Equity History and Analysis

Debt Level: NMX's debt to equity ratio (55.5%) is considered high.

Reducing Debt: Insufficient data to determine if NMX's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: NMX'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: NMX has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: NMX has sufficient cash runway for 1.1 years if free cash flow continues to reduce at historical rates of -59.4% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if NMX'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 NMX'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?

5.2yrs

Average management tenure


CEO

Guy Bourassa (61yo)

12.1yrs

Tenure

CA$1,773,278

Compensation

Mr. Guy G. Bourassa has been the President and Chief Executive Officer of Nemaska Lithium Inc. (formerly known as Nemaska Exploration Inc.) since 2008 and served as its Secretary. Mr. Bourassa has been Sec ...


CEO Compensation Analysis

Compensation vs Market: Guy's total compensation ($USD1.34M) is above average for companies of similar size in the Canadian market ($USD154.66K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Guy Bourassa
President12.1yrsCA$1.77m0.72% CA$735.0k
Steve Nadeau
Chief Financial Officer11.8yrsCA$953.97k0.13% CA$128.6k
Robert Beaulieu
Vice President of Operations1.1yrsCA$492.06kno data
Marc Dagenais
VP of Legal Affairs & Corporate Secretary3.4yrsCA$794.11k0.0013% CA$1.3k
Chantal Francoeur
Vice President of Human Resources & Organizational Development3.3yrsCA$527.45k0.0080% CA$8.2k
Gary Pearse
Technical Consultant0yrsno datano data
Jean Magnan
Technical Manager7yrsno datano data

5.2yrs

Average Tenure

61yo

Average Age

Experienced Management: NMX's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Guy Bourassa
President12.1yrsCA$1.77m0.72% CA$735.0k
Paul-Henri Couture
Independent Director6.6yrsCA$75.27k0.049% CA$49.8k
Michel Baril
Independent Director11.3yrsCA$100.40k0.14% CA$142.1k
Jacques Mallette
Independent Chairman of the Board0.08yrsCA$26.58kno data
Luc Séguin
Director0.9yrsCA$29.15kno data
François Biron
Independent Director4.3yrsCA$91.08k0.021% CA$21.0k
Shigeki Miwa
Independent Director1.8yrsCA$35.44kno data
Vanessa Laplante
Independent Director1.2yrsCA$53.44k0.0017% CA$1.7k

3.0yrs

Average Tenure

62yo

Average Age

Experienced Board: NMX's board of directors are considered experienced (3 years average tenure).


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 28.1%.


Top Shareholders

Company Information

Nemaska Lithium Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nemaska Lithium Inc.
  • Ticker: NMX
  • Exchange: TSX
  • Founded: 2007
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$101.801m
  • Shares outstanding: 847.63m
  • Website: https://www.nemaskalithium.com

Number of Employees


Location

  • Nemaska Lithium Inc.
  • 450, rue de la Gare du Palais
  • 1st Floor
  • Quebec City
  • Quebec
  • G1K 3X2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NMXTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 2010
NMKE.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 2010
0V8HLSE (London Stock Exchange)YesCommon SharesGBCADJan 2010

Biography

Nemaska Lithium Inc. operates as a developing chemical company in Canada. The company focuses on integrating activities from spodumene mining to the commercialization of lithium hydroxide and lithium carbonate. It owns 100% interests in the Whabouchi property that consists of 35 claims covering an area of 1,632.24 hectares located in the Eeyou Istchee/James Bay area of Quebec province. The company was formerly known as Nemaska Exploration Inc. and changed its name to Nemaska Lithium Inc. in November 2011. Nemaska Lithium Inc. was incorporated in 2007 and is headquartered in Quebec City, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 01:23
End of Day Share Price2019/12/20 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.