Lithium Americas Corp. (LAC) AI Stock Analysis

• Market Cap: $904.09M
• Dividend Yield: N/A
• Average Volume (3M): 458.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 87
• Sector: Basic Materials
• Sector Strength: 56
• Industry: Mining
• EPS (TTM): -0.12
• Shares Outstanding: 218,378,420
• 10 Day Avg. Volume: 457,887
• 30 Day Avg. Volume: 458,365
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): 76.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$7.29
• Price Target Upside: 75.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Lithium Americas Corp. faces significant financial performance challenges, particularly with negative income and cash flow metrics, which heavily weigh down its overall score. The technical analysis suggests a neutral trend, and valuation metrics are weak due to negative earnings. These factors collectively lead to a lower overall stock score.

Positive Factors

Investment and Funding

Lithium Americas announced a new investment agreement with GM that will bring $625M in cash for the Thacker Pass project.

Project Development

Pre-construction work at Thacker Pass is progressing ahead of schedule, with significant milestones achieved.

Negative Factors

Commodity Prices

There are risks due to expectations that lithium prices need to rebound significantly to meet the project's financial assumptions.

Lithium Americas Corp. Business Overview & Revenue Model

Company Description

Lithium Americas Corp. (LAC) is a resource company focused on the development and production of lithium, a critical component in batteries used for electric vehicles and renewable energy storage. The company operates in the mining sector and is engaged in developing its key projects, including the Cauchari-Olaroz project in Argentina and the Thacker Pass project in Nevada, USA. Through its strategic initiatives, Lithium Americas aims to become a leading supplier of lithium to the growing battery and energy storage markets.

How the Company Makes Money

Lithium Americas Corp. generates revenue primarily through the extraction, production, and sale of lithium products. The company's key revenue streams include the sale of lithium carbonate, a form of lithium used in battery manufacturing, from its Cauchari-Olaroz project. Additionally, the development of the Thacker Pass project represents a significant future revenue opportunity, as it positions the company to supply lithium to the North American market. Strategic partnerships with companies in the battery and automotive sectors may also contribute to its earnings by ensuring long-term offtake agreements and investment in its projects. As the demand for electric vehicles and renewable energy solutions grows, Lithium Americas stands to benefit from the increasing need for lithium products.

Lithium Americas Corp. Financial Statement Overview

Summary

Lithium Americas Corp. presents financial challenges, primarily driven by negative profitability and cash flow metrics. While the balance sheet remains robust with low leverage and high equity, the company needs to improve revenue generation and manage operational costs to enhance overall financial health.

Income Statement

Lithium Americas Corp. shows a challenging income statement with negative gross profit and net income. The company has not reported positive revenue growth, and the EBIT and EBITDA margins are negative, reflecting high costs relative to minimal revenue generation.

Balance Sheet

The company's balance sheet is relatively strong with a high equity ratio and a low debt-to-equity ratio, indicating strong equity financing and low leverage. Return on equity is negative due to net losses, but the high stockholders' equity provides a stable financial base.

Cash Flow

Cash flow analysis reveals negative free cash flow growth and a negative operating cash flow to net income ratio, highlighting cash flow challenges. Despite substantial financing activities, the company faces high capital expenditures impacting free cash flow.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
53.29K	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-149.98K	0.00	-1.52M	-658.00K	-483.00K	0.00
	EBIT
-26.18M	-27.63K	-117.69M	-40.98M	-28.86M	59.66M
	EBITDA
-34.07M	―	-115.94M	-40.06M	-28.17M	60.72M
	Net Income Common Stockholders
-27.24M	-3.93M	-48.13M	-58.35M	-35.22M	51.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
83.61M	195.52M	352.10M	510.61M	148.07M	83.61M
	Total Assets
293.80M	439.50M	1.02B	817.34M	326.72M	293.80M
	Total Debt
120.22M	3.11M	207.58M	264.98M	124.77M	120.22M
	Net Debt
36.61M	-192.40M	13.11M	-245.63M	-23.30M	36.61M
	Total Liabilities
134.18M	32.04M	232.55M	281.03M	136.02M	134.18M
	Stockholders Equity
159.62M	407.46M	784.00M	536.32M	190.70M	159.62M
Cash Flow		Free Cash Flow
-194.02M	-227.79M	-71.90M	-55.06M	-92.65M	-47.50M
	Operating Cash Flow
-7.64M	-37.96M	-65.22M	-53.18M	-30.88M	-17.65M
	Investing Cash Flow
-186.67M	-190.12M	-230.88M	-115.83M	-42.60M	-8.36M
	Financing Cash Flow
334.98M	422.96M	-23.46M	531.41M	137.82M	67.91M

Lithium Americas Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.14
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LAC, the sentiment is Positive. The current price of 4.14 is below the 20-day moving average (MA) of 4.16, below the 50-day MA of 4.40, and below the 200-day MA of 4.24, indicating a bullish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 56.15 is Neutral, neither overbought nor oversold. The STOCH value of 80.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LAC.

Lithium Americas Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGML	50 Neutral	$1.75B	―	-38.77%	―	72.76%	38.06%
CRE	49 Neutral	C$115.46M	74.65	2.13%	―	―	―
Sector *	47 Neutral	$2.64B	-4.00	-31.55%	3.33%	2.93%	-29.90%
AVL	43 Neutral	$18.06M	―	-5.00%	―	―	-1118.18%
LAC	42 Neutral	$904.09M	―	-4.13%	―	―	―
LTHM	27 Underperform	C$1.39M	―	-788.70%	―	―	14.62%

Lithium Americas Corp. Corporate Events

Lithium Americas Partners with GM for Thacker Pass

Lithium Americas Corp. has taken significant strides in the development of its Thacker Pass project, including securing a $2.26 billion loan from the U.S. Department of Energy and forming a joint venture with General Motors. The company reported a strong financial position with $341.2 million in cash reserves as they focus on expanding their role in the North American lithium supply chain.