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.

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

20.9%

NLC

-0.8%

CA Metals and Mining

0.2%

CA Market


1 Year Return

-45.0%

NLC

13.6%

CA Metals and Mining

2.4%

CA Market

Return vs Industry: NLC underperformed the Canadian Metals and Mining industry which returned 13.6% over the past year.

Return vs Market: NLC underperformed the Canadian Market which returned 2.4% over the past year.


Shareholder returns

NLCIndustryMarket
7 Day20.9%-0.8%0.2%
30 Day-3.5%-8.4%-3.3%
90 Day-21.4%-7.6%-1.8%
1 Year-45.0%-45.0%14.5%13.6%6.0%2.4%
3 Year-53.8%-53.8%-10.6%-12.2%14.2%4.0%
5 Yearn/a16.7%12.9%27.2%8.6%

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?

0.95x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: NLC 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 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 (0.9x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Neo Lithium forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

40.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NLC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NLC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NLC is forecast to remain unprofitable over the next 3 years.

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

High Growth Revenue: Insufficient data to determine if NLC's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NLC is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Neo Lithium performed over the past 5 years?

21.0%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NLC is unprofitable, and there is insufficient past data to establish if their past 5-year earnings growth rate was positive.

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

Earnings vs Industry: NLC is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-11.9%).


Return on Equity

High ROE: NLC has a negative Return on Equity (-7.29%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NLC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NLC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Neo Lithium's financial position?


Financial Position Analysis

Short Term Liabilities: NLC's short term assets (CA$35.7M) exceeds its short term liabilities (CA$3.5M)

Long Term Liabilities: NLC's short term assets (35.7M) exceeds its long term liabilities (40.1K)


Debt to Equity History and Analysis

Debt Level: NLC is debt free.

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if NLC'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: NLC has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: NLC has sufficient cash runway for 2.824958 years if free cash flow continues to grow at historical rates of 4.5% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

3.2yrs

Average management tenure


CEO

Waldo Perez (55yo)

3.8yrs

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: Insufficient data to establish whether Waldo's total compensation is reasonable compared to companies of similar size in the Canadian market.

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


Management Age and Tenure

3.2yrs

Average Tenure

Experienced Management: NLC's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

56.5yo

Average Age

Experienced Board: NLC's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

Insider Buying: NLC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$38,14121 Aug 19
Waldo Perez
EntityIndividual
Role
Chief Executive Officer
President
Shares65,000
Max PriceCA$0.59
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

Ownership Breakdown


Management Team

  • Waldo Perez (55yo)

    President

    • Tenure: 3.8yrs
    • Compensation: CA$390.00k
  • Ruben Pindar (47yo)

    COO & Director

    • Tenure: 3.7yrs
    • Compensation: CA$357.50k
  • Carlos Vicens

    Chief Financial Officer

    • Tenure: 3.2yrs
    • Compensation: CA$300.00k

Board Members

  • Tom Pladsen (59yo)

    Director

    • Tenure: 3.7yrs
    • Compensation: CA$48.00k
  • Constantine Karayannopoulos (58yo)

    Non- Executive Chairman

    • Tenure: 3.7yrs
    • Compensation: CA$160.00k
  • Waldo Perez (55yo)

    President

    • Tenure: 3.8yrs
    • Compensation: CA$390.00k
  • Estanislao Auriemma

    Director

    • Tenure: 0.9yrs
    • Compensation: CA$2.50k
  • Ruben Pindar (47yo)

    COO & Director

    • Tenure: 3.7yrs
    • Compensation: CA$357.50k
  • Mark King

    Member of The Technical Advisory Team

    • Tenure: 1.5yrs

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 interests in the Tres Quebradas project located in the southern end  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:54
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.