Li-Cycle Holdings Corp.
Li-Cycle Holdings Corp. Fundamental Analysis
Li-Cycle Holdings Corp. (LICY) shows moderate financial fundamentals with a PE ratio of 2.92, profit margin of 46.75%, and ROE of 2.58%. The company generates $0.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LICY's fundamental strength across five key dimensions:
Efficiency Score
WeakLICY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLICY trades at attractive valuation levels.
Growth Score
WeakLICY faces weak or negative growth trends.
Financial Health Score
WeakLICY carries high financial risk with limited liquidity.
Profitability Score
ModerateLICY maintains healthy but balanced margins.
Key Financial Metrics
Is LICY Expensive or Cheap?
P/E Ratio
LICY trades at 2.92 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LICY's PEG of -0.05 indicates potential undervaluation.
Price to Book
The market values Li-Cycle Holdings Corp. at 0.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -7.33 times EBITDA. This is generally considered low.
How Well Does LICY Make Money?
Net Profit Margin
For every $100 in sales, Li-Cycle Holdings Corp. keeps $46.75 as profit after all expenses.
Operating Margin
Core operations generate -3.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.58 in profit for every $100 of shareholder equity.
ROA
Li-Cycle Holdings Corp. generates $0.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Li-Cycle Holdings Corp. generates limited operating cash flow of $-48.97M, signaling weaker underlying cash strength.
Free Cash Flow
Li-Cycle Holdings Corp. generates weak or negative free cash flow of $-61.06M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.72 in free cash annually.
FCF Yield
LICY converts -1.44% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.70
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
-0.08
vs 25 benchmark
How LICY Stacks Against Its Sector Peers
| Metric | LICY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.92 | 26.66 | Better (Cheaper) |
| ROE | 2.58% | 1305.00% | Weak |
| Net Margin | 46.75% | -5148.00% (disorted) | Strong |
| Debt/Equity | 1.70 | 0.82 | Weak (High Leverage) |
| Current Ratio | 0.58 | 10.84 | Weak Liquidity |
| ROA | 0.84% | -1553219.00% (disorted) | Weak |
LICY outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Li-Cycle Holdings Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure