TSXV:NLC

Stock Analysis Report

Executive Summary

Neo Lithium Corp. engages in the exploration and development of resource properties.

Snowflake

Fundamentals

Flawless balance sheet and overvalued.

Risks

  • Neo Lithium has significant price volatility in the past 3 months.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-6.8%

TSXV:NLC

0.08%

CA Metals and Mining

1.0%

CA Market


1 Year Return

-42.7%

TSXV:NLC

20.3%

CA Metals and Mining

-5.0%

CA Market

NLC underperformed the Metals and Mining industry which returned 20.3% over the past year.

NLC underperformed the Market in Canada which returned -5% over the past year.


Share holder returns

NLCIndustryMarket
7 Day-6.8%0.08%1.0%
30 Day-16.7%-0.9%-2.8%
90 Day-30.4%24.4%-1.7%
1 Year-42.7%-42.7%21.2%20.3%-1.7%-5.0%
3 Year-63.3%-63.3%-8.9%-10.6%14.7%4.4%
5 Yearn/a-8.6%-12.0%12.5%-3.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Neo Lithium undervalued based on future cash flows and its price relative to the stock market?

81.07x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Neo Lithium to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Neo Lithium to establish if it is available at substantial discount.


Price Based on Earnings

Neo Lithium is overvalued based on earnings compared to the CA Metals and Mining industry average.

Neo Lithium is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

Neo Lithium earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Neo Lithium is good value based on assets compared to the CA Metals and Mining industry average.


Next Steps

Future Growth

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

-90.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Neo Lithium is high growth as no revenue estimate data is available.

Neo Lithium's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Neo Lithium's revenue growth to the Canada market average as no estimate data is available.

Neo Lithium's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.

Neo Lithium's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Neo Lithium will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

How has Neo Lithium performed over the past 5 years?

0.3%

Historical Materials annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Insufficient data to establish if Neo Lithium's year on year earnings growth rate was positive over the past 5 years.

Neo Lithium has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Neo Lithium has become profitable in the last year making it difficult to compare the CA Metals and Mining industry average.


Return on Equity

Neo Lithium has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Neo Lithium used its assets less efficiently than the CA Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Neo Lithium 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 Neo Lithium's financial position?


Financial Position Analysis

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

Neo Lithium's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Neo Lithium has no debt.

Neo Lithium has not taken on any debt in the past 5 years.

Neo Lithium has no debt, it does not need to be covered by operating cash flow.

Neo Lithium has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Neo Lithium has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

No need to calculate the sustainability of Neo Lithium's dividends in 3 years as they are not expected to pay a notable one for Canada.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Waldo Perez (55yo)

3.6yrs

Tenure

CA$390,000

Compensation

Dr. Waldo A. Perez, Ph.D., P.Geo. has been Chief Executive Officer and President of Neo Lithium Corp. since January 15, 2016. Dr. Perez served as the Chief Executive Officer and President of Lithium Americ ...


CEO Compensation Analysis

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

Waldo's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.0yrs

Average Tenure

The tenure for the Neo Lithium management team is about average.


Board Age and Tenure

3.5yrs

Average Tenure

56.5yo

Average Age

The tenure for the Neo Lithium board of directors is about average.


Insider Trading

More shares have been bought than sold by Neo Lithium individual insiders in the past 3 months.


Recent Insider Transactions

BuyCA$64,83018 Jul 19
Waldo Perez
EntityIndividual
Role
Chief Executive Officer
President
Shares103,000
Max PriceCA$0.63
BuyCA$29,62514 Feb 19
Constantine Karayannopoulos
EntityIndividual
Role
Chairman of the Board
Non- Executive Chairman
Shares37,500
Max PriceCA$0.79
BuyCA$84,60221 Jan 19
Ruben Pindar
EntityIndividual
Role
Member of the Board of Directors
COO & Director
Shares100,000
Max PriceCA$0.88
BuyCA$44,53018 Jan 19
Waldo Perez
EntityIndividual
Role
Chief Executive Officer
President
Shares55,800
Max PriceCA$0.80
SellCA$54,00026 Sep 18
Thomas Pladsen
EntityIndividual
Role
Member of the Board of Directors
Director
Shares50,000
Max PriceCA$1.08

Ownership Breakdown


Management Team

  • Waldo Perez (55yo)

    President

    • Tenure: 3.6yrs
    • Compensation: CA$390.00k
  • Ruben Pindar (47yo)

    COO & Director

    • Tenure: 3.5yrs
    • Compensation: CA$357.50k
  • Carlos Vicens

    Chief Financial Officer

    • Tenure: 3.0yrs
    • Compensation: CA$300.00k

Board Members

  • Tom Pladsen (59yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: CA$48.00k
  • Constantine Karayannopoulos (58yo)

    Non- Executive Chairman

    • Tenure: 3.5yrs
    • Compensation: CA$160.00k
  • Waldo Perez (55yo)

    President

    • Tenure: 3.6yrs
    • Compensation: CA$390.00k
  • Estanislao Auriemma

    Director

    • Tenure: 0.8yrs
    • Compensation: CA$2.50k
  • Ruben Pindar (47yo)

    COO & Director

    • Tenure: 3.5yrs
    • Compensation: CA$357.50k
  • Mark King

    Member of The Technical Advisory Team

    • Tenure: 1.3yrs

Company Information

Neo Lithium Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Neo Lithium Corp.
  • Ticker: NLC
  • Exchange: TSXV
  • Founded: 2016
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$64.626m
  • Shares outstanding: 117.50m
  • Website: https://www.neolithium.ca

Location

  • Neo Lithium Corp.
  • 401 Bay Street
  • Suite 2702
  • Toronto
  • Ontario
  • M5H 2Y4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NLCTSXV (TSX Venture Exchange)YesCommon SharesCACADJul 2016
NTTH.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 2016
NE2DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2016

Biography

Neo Lithium Corp. engages in the exploration and development of resource properties. The company explores for lithium deposits. It holds 100% interests in the Tres Quebradas project comprising 11 mining cl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 01:13
End of Day Share Price2019/08/23 00:00
Earnings2019/03/31
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.