TSXV:LNC

Stock Analysis Report

Executive Summary

Lithion Energy Corp. operates as a mineral exploration company in the United States.

Snowflake

Fundamentals

Flawless balance sheet with poor track record.

Share Price & News

How has Lithion Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LNC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

LNC

-2.0%

CA Metals and Mining

1.1%

CA Market


1 Year Return

754.5%

LNC

23.7%

CA Metals and Mining

6.6%

CA Market

Return vs Industry: LNC exceeded the Canadian Metals and Mining industry which returned 23.7% over the past year.

Return vs Market: LNC exceeded the Canadian Market which returned 6.6% over the past year.


Shareholder returns

LNCIndustryMarket
7 Day0%-2.0%1.1%
30 Day0%-0.3%2.5%
90 Day17.5%-5.5%2.8%
1 Year754.5%754.5%24.7%23.7%10.2%6.6%
3 Year276.0%276.0%-2.8%-4.6%19.4%8.7%
5 Year-27.7%-27.7%20.2%16.1%27.3%8.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Lithion Energy undervalued compared to its fair value and its price relative to the market?

6.13x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: LNC 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 LNC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LNC is overvalued based on its PB Ratio (6.1x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Lithion Energy forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

27.1%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Lithion Energy has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Lithion Energy performed over the past 5 years?

40.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LNC has high quality earnings.

Growing Profit Margin: Insufficient data to determine if LNC's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: LNC is unprofitable, but has reduced losses over the past 5 years at a rate of 40.5% per year.

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

Earnings vs Industry: LNC is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-23.6%).


Return on Equity

High ROE: LNC has a negative Return on Equity (-5.54%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lithion Energy's financial position?


Financial Position Analysis

Short Term Liabilities: LNC's short term assets (CA$2.2M) exceeds its short term liabilities (CA$1.9K)

Long Term Liabilities: LNC has no long term liabilities


Debt to Equity History and Analysis

Debt Level: LNC is debt free.

Reducing Debt: LNC has not had any debt for past 5 years.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if LNC's debt is covered by short term assets.


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: LNC has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: LNC has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -0.2% each year


Next Steps

Dividend

What is Lithion Energy's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if LNC'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 LNC'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 Lithion Energy's salary, the management and board of directors tenure and is there insider trading?

0.5yrs

Average board tenure


CEO

Alex Granger 0

0.5yrs

Tenure

0

Mr. Alex Granger, B Com., has been the Chief Executive Officer and Director at Lithion Energy Corporation since May 2019. Mr. Granger is Managing Director of Xela Group Ltd., a consulting firm to the junio ...


CEO Compensation Analysis

Compensation vs Market: Alex's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD136.18K).

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


Board Age and Tenure

0.5yrs

Average Tenure

Experienced Board: LNC's board of directors are not considered experienced ( 0.5 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

BuyCA$7,50003 May 19
Shawn Westcott
EntityIndividual
Shares50,000
Max PriceCA$0.15

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.5%.


Management Team

  • Alex Granger

    CEO & Director

    • Tenure: 0.5yrs
  • Karen Dyczkowski (63yo)

    CFO & Corporate Secretary

    • Tenure: 3yrs
    • Compensation: CA$30.00k

Board Members

  • Warren Gilman (59yo)

    Independent Chairman of the Board

    • Tenure: 0.5yrs
  • Alex Granger

    CEO & Director

    • Tenure: 0.5yrs
  • John Anderson

    Independent Director

    • Tenure: 0.3yrs

Company Information

Lithion Energy Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lithion Energy Corp.
  • Ticker: LNC
  • Exchange: TSXV
  • Founded: 2011
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$18.943m
  • Shares outstanding: 40.30m
  • Website: https://www.lithionenergycorp.com

Location

  • Lithion Energy Corp.
  • 1140 Pender Street
  • Suite 1240
  • Vancouver
  • British Columbia
  • V6E 4G1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LNCTSXV (TSX Venture Exchange)YesCommon SharesCACADAug 2011
BRSG.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2011
B8GNDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2011

Biography

Lithion Energy Corp. operates as a mineral exploration company in the United States. It holds an interest in the Railroad Valley Lithium property, which includes 517 placer claims covering an area of appro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 00:21
End of Day Share Price2019/09/12 00:00
Earnings2019/05/31
Annual Earnings2018/08/31


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.