Arcadium Lithium plc
Find Ratings ReportsARCADIUM LITHIUM PLC's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. ARCADIUM LITHIUM PLC has average liquidity. Currently, the Quick Ratio is 1.28 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 58.26% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 181.8 | 219.4 |
EBITDA ($mil) | 86.3 | 110.3 |
EBIT ($mil) | 78.2 | 102.0 |
Net Income ($mil) | 37.7 | 82.7 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 237.6 | 189.0 |
Total Assets ($mil) | 3230.1 | 2074.2 |
Total Debt ($mil) | 517.4 | 247.0 |
Equity ($mil) | 2283.8 | 1443.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 57.7 | 57.52 |
EBITDA Margin | 47.46 | 50.27 |
Operating Margin | 43.01 | 46.49 |
Sales Turnover | 0.27 | 0.39 |
Return on Assets | 10.21 | 13.18 |
Return on Equity | 14.45 | 18.95 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 2.41 | 3.66 |
Debt/Capital | 0.18 | 0.15 |
Interest Expense | 0.0 | 0.0 |
Interest Coverage | 0.0 | 0.0 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 432.43 | 431.99 |
Div / share | 0.0 | 0.0 |
EPS | 0.07 | 0.16 |
Book value / share | 5.28 | 3.34 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1.5566947E7 | 4883096.0 |
HOLD. ARCADIUM LITHIUM PLC's P/E ratio indicates a significant discount compared to an average of 85.83 for the Chemical Manufacturing subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 0.86 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 19.07. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, ARCADIUM LITHIUM PLC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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ALTM 6.91 | Peers 85.83 | ALTM 6.60 | Peers 38.76 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. ALTM is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. ALTM is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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ALTM 14.19 | Peers 18.08 | ALTM NM | Peers 1.16 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. ALTM is trading at a significant premium to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. ALTM's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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ALTM 0.86 | Peers 19.07 | ALTM 17.03 | Peers 12.58 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. ALTM is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. ALTM is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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ALTM 2.22 | Peers 84.44 | ALTM 8.52 | Peers 42.35 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. ALTM is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. ALTM significantly trails its peers on the basis of sales growth. |
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