Sigma Lithium Corp (NASDAQ: SGML)

Sector: Basic Materials Industry: Other Industrial Metals & Mining CIK: 0001848309
Market Cap 1.45 Bn
P/B 23.94
P/E -53.65
P/S 12.51
ROIC (Qtr) -7.73
Div Yield % 0.00
Rev 1y % (Qtr) 34.66
Total Debt (Qtr) 120.59 Mn
Debt/Equity (Qtr) 1.99
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About

Investment thesis

Bull case

  • Tangible assets of 248.42M provide exceptional 82.05x coverage of deferred revenue 3.03M, showing strong service capability backing.
  • Strong free cash flow of (24.76M) provides 14.10x coverage of acquisition spending (1.76M), indicating disciplined M&A strategy.
  • Tangible assets of 248.42M provide robust 15.20x coverage of other current liabilities 16.35M, indicating strong asset backing.
  • Cash position of 4.43M provides strong 1.46x coverage of deferred revenue 3.03M, ensuring service delivery capability.
  • Tangible assets of 248.42M provide robust 2.67x coverage of current liabilities 92.98M, showing strong asset backing.

Bear case

  • With cash reserves of 4.43M against inventory of 16.17M, the 0.27 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Cash reserves of 4.43M provide limited coverage of acquisition spending of (1.76M), which is -2.52x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (16.80M) provides insufficient coverage of deferred revenue obligations of 3.03M, which is -5.55x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (16.80M) shows concerning coverage of stock compensation expenses of 4.20M, with a -4 ratio indicating potential earnings quality issues.
  • Free cash flow of (24.76M) provides weak coverage of capital expenditures of 7.97M, with a -3.11 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Other Industrial Metals & Mining
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BHP BHP Group Ltd 188.54 Bn 18.41 3.49 29.90 Bn
2 TECK Teck Resources Ltd 28.53 Bn 31.70 3.75 3.67 Bn
3 MP MP Materials Corp. / DE 9.57 Bn -81.36 41.12 1.00 Bn
4 SKE Skeena Resources Ltd 3.70 Bn -44.17 0.00 0.04 Bn
5 MTRN MATERION Corp 3.18 Bn 42.47 1.78 0.53 Bn
6 ALM Almonty Industries Inc. 2.45 Bn -216.48 122.35 0.14 Bn
7 USAS Americas Gold & Silver Corp 1.71 Bn -27.92 15.69 0.06 Bn
8 USAR USA Rare Earth, Inc. 1.68 Bn -6.60 0.00 0.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 5.39 2.89
EV to Cash from Ops. EV/CFO -79.78 -38.49
EV to Debt EV to Debt 11.11 537.19
EV to EBIT EV/EBIT -126.89 -24.27
EV to EBITDA EV/EBITDA 19,670.65 458.80
EV to Free Cash Flow [EV/FCF] EV/FCF -54.11 -18.50
EV to Market Cap EV to Market Cap 0.92 0.42
EV to Revenue EV/Rev 11.53 34.60
Price to Book Value [P/B] P/B 23.94 10.18
Price to Earnings [P/E] P/E -53.65 -32.46
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -16.19
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 1.36
Dividend per Basic Share Div per Share (Qtr) 0.00 0.05
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -4.32
Interest Coverage Int. cover (Qtr) -0.40 412.60
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 54.47 -7,554.56
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -93.21 2,335.82
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -2.77
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 45.04 -76.97
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 101.23 -2.67
EBIT Growth (1y) % EBIT 1y % (Qtr) 28.32 -36.91
EBT Growth (1y) % EBT 1y % (Qtr) 13.58 -100.70
EPS Growth (1y) % EPS 1y % (Qtr) 33.63 -24.28
FCF Growth (1y) % FCF 1y % (Qtr) -511.67 -5,480.62
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 19.20 9.93
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.34 0.14
Cash Payout Ratio Cash Payout Ratio 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.05 3.63
Current Ratio Curr Ratio (Qtr) 0.49 5.14
Debt to Equity Ratio Debt/Equity (Qtr) 1.99 0.74
Interest Cover Ratio Int Coverage (Qtr) -0.40 412.60
Times Interest Earned Times Interest Earned (Qtr) -0.40 412.60
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.10 -684.08
EBIT Margin % EBIT Margin % (Qtr) -12.54 -696.03
EBT Margin % EBT Margin % (Qtr) -31.54 -788.18
Gross Margin % Gross Margin % (Qtr) 16.90 11.20
Net Profit Margin % Net Margin % (Qtr) -23.30 -790.68