TSXV:NLC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.8%

NLC

-3.5%

CA Metals and Mining

2.2%

CA Market


1 Year Return

-19.1%

NLC

26.7%

CA Metals and Mining

-10.1%

CA Market

Return vs Industry: NLC underperformed the Canadian Metals and Mining industry which returned 26.7% over the past year.

Return vs Market: NLC underperformed the Canadian Market which returned -10.1% over the past year.


Shareholder returns

NLCIndustryMarket
7 Day5.8%-3.5%2.2%
30 Day10.0%-4.9%5.8%
90 Day-23.6%16.9%-5.3%
1 Year-19.1%-19.1%27.6%26.7%-7.1%-10.1%
3 Year-56.3%-56.3%10.3%8.4%1.8%-7.7%
5 Yearn/a52.9%48.7%19.1%1.5%

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 compared to its fair value and its price relative to the market?

3.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NLC (CA$0.55) is trading above our estimate of fair value (CA$0.43)

Significantly Below Fair Value: NLC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NLC is good value based on its PE Ratio (3.1x) compared to the Metals and Mining industry average (17.7x).

PE vs Market: NLC is good value based on its PE Ratio (3.1x) compared to the Canadian market (13.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NLC is good value based on its PB Ratio (1x) compared to the CA Metals and Mining industry average (1.8x).


Next Steps

Future Growth

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

24.5%

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 Neo Lithium 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 Neo Lithium performed over the past 5 years?

94.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NLC has a high level of non-cash earnings.

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


Past Earnings Growth Analysis

Earnings Trend: NLC has become profitable over the past 5 years, growing earnings by 94.7% per year.

Accelerating Growth: NLC's earnings growth over the past year (2770.4%) exceeds its 5-year average (94.7% per year).

Earnings vs Industry: NLC earnings growth over the past year (2770.4%) exceeded the Metals and Mining industry 14.8%.


Return on Equity

High ROE: NLC's Return on Equity (32.3%) is considered high.


Next Steps

Financial Health

How is Neo Lithium's financial position?


Financial Position Analysis

Short Term Liabilities: NLC's short term assets (CA$31.7M) exceed its short term liabilities (CA$1.2M).

Long Term Liabilities: NLC's short term assets (CA$31.7M) exceed its long term liabilities (CA$2.7M).


Debt to Equity History and Analysis

Debt Level: NLC is debt free.

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

Debt Coverage: NLC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NLC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

3.8yrs

Average management tenure


CEO

Waldo Perez (55yo)

4.42yrs

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

Compensation vs Market: Waldo's total compensation ($USD288.43K) is above average for companies of similar size in the Canadian market ($USD165.66K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Waldo Perez
President4.42yrsCA$390.00k4.46% CA$2.9m
Carlos Vicens
Chief Financial Officer3.83yrsCA$300.00k0.015% CA$9.9k
Ruben Pindar
COO & Director4.33yrsCA$357.50k4.25% CA$2.7m

3.8yrs

Average Tenure

Experienced Management: NLC's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Waldo Perez
President4.42yrsCA$390.00k4.46% CA$2.9m
Ruben Pindar
COO & Director4.33yrsCA$357.50k4.25% CA$2.7m
Thomas Pladsen
Independent Director4.33yrsCA$48.00k0.13% CA$82.5k
Constantine Karayannopoulos
Independent Non- Executive Chairman4.33yrsCA$160.00k1.57% CA$1.0m
Estanislao Auriemma
Director1.58yrsCA$2.50kno data
Mark King
Member of The Technical Advisory Team2.17yrsno datano data

4.3yrs

Average Tenure

56.5yo

Average Age

Experienced Board: NLC's board of directors are considered experienced (4.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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. It explores for lithium deposits. The company holds interests in the Tres Quebradas project located in the southern end of the lithium triangle in the Puna Plateau in northern Argentina. Neo Lithium Corp. was incorporated in 2016 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 05:40
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.