Arcadium Lithium plc
Arcadium Lithium plc Fundamental Analysis
Arcadium Lithium plc (ALTM) shows moderate financial fundamentals with a PE ratio of 60.54, profit margin of 10.24%, and ROE of 2.57%. The company generates $1.0B in annual revenue with strong year-over-year growth of 14.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ALTM's fundamental strength across five key dimensions:
Efficiency Score
WeakALTM struggles to generate sufficient returns from assets.
Valuation Score
ModerateALTM shows balanced valuation metrics.
Growth Score
ModerateALTM shows steady but slowing expansion.
Financial Health Score
ExcellentALTM maintains a strong and stable balance sheet.
Profitability Score
WeakALTM struggles to sustain strong margins.
Key Financial Metrics
Is ALTM Expensive or Cheap?
P/E Ratio
ALTM trades at 60.54 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ALTM's PEG of -1.35 indicates potential undervaluation.
Price to Book
The market values Arcadium Lithium plc at 1.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 19.24 times EBITDA. This signals the market has high growth expectations.
How Well Does ALTM Make Money?
Net Profit Margin
For every $100 in sales, Arcadium Lithium plc keeps $10.24 as profit after all expenses.
Operating Margin
Core operations generate -5.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.57 in profit for every $100 of shareholder equity.
ROA
Arcadium Lithium plc generates $1.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Arcadium Lithium plc generates limited operating cash flow of $-177.16M, signaling weaker underlying cash strength.
Free Cash Flow
Arcadium Lithium plc generates weak or negative free cash flow of $-177.16M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.16 in free cash annually.
FCF Yield
ALTM converts -2.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
60.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.00
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How ALTM Stacks Against Its Sector Peers
| Metric | ALTM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 60.54 | 24.08 | Worse (Expensive) |
| ROE | 2.57% | 921.00% | Weak |
| Net Margin | 10.24% | -113338.00% (disorted) | Strong |
| Debt/Equity | 0.16 | 0.53 | Strong (Low Leverage) |
| Current Ratio | 1.09 | 5.09 | Neutral |
| ROA | 1.01% | -9816.00% (disorted) | Weak |
ALTM outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Arcadium Lithium plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-14.80%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
-32.50%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-199.47%
Industry Style: Cyclical, Commodity, Value
Declining