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Lithium Americas (Argentina) Corp LAAC

Morningstar Rating
$4.85 +0.10 (2.11%)
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Company Report

Lithium Argentina: Incoming CEO Brings Strong Experience

Lithium Argentina announced that Sam Pigott will become the company's president and chief executive officer effective March 18. Pigott replaces interim CEO John Kanellitsas. Kanellitsas, who is also the executive chair of Lithium Argentina's board of directors will retain his executive chair role. After reviewing the announcement, we see no reason to change our outlook for the company. Accordingly, we're maintaining our $25 (CAD 34) fair value estimate. Our narrow moat rating is also unchanged.

Price vs Fair Value

LAAC is trading at a 81% discount.
Price
$4.74
Fair Value
$31.00
Uncertainty
Very High
1-Star Price
$61.39
5-Star Price
$37.60
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Lithium Argentina will become a low-cost lithium producer generating profitability regardless of lithium prices.

Bears

Lithium prices will fall as new supply comes online faster than demand, which will weigh on profitability. Lithium Argentina’s investment in its two projects will prove value-destructive in the wake of lower prices.

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News

Trading Information

Previous Close Price
$4.75
Day Range
$4.785.04
52-Week Range
$3.848.12
Bid/Ask
$4.85 / $4.86
Market Cap
$778.43 Mil
Volume/Avg
1.4 Mil / 1.8 Mil

Key Statistics

Price/Earnings (Normalized)
Price/Sales
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Lithium Argentina is a pure-play lithium producer. The company owns two neighboring lithium brine resources in northwest Argentina: Cauchari-Olaroz and Pastos Grandes. Cauchari-Olaroz entered production in 2023, while Pastos Grandes is still in development. Lithium Argentina plans for both resources to be fully integrated with onside downstream processing capabilities and will sell into the lithium chemical market.
Sector
Basic Materials
Industry
Other Industrial Metals & Mining
Stock Style Box
Small Growth
Total Number of Employees
83

Competitors

Valuation

Metric
LAAC
ALTM
ALB
Price/Earnings (Normalized)
6.355.94
Price/Book Value
0.601.281.65
Price/Sales
2.821.62
Price/Cash Flow
6.035.47
Price/Earnings
LAAC
ALTM
ALB

Financial Strength

Metric
LAAC
ALTM
ALB
Quick Ratio
3.091.900.77
Current Ratio
12.433.461.47
Interest Coverage
−1.852.71
Quick Ratio
LAAC
ALTM
ALB

Profitability

Metric
LAAC
ALTM
ALB
Return on Assets (Normalized)
−5.06%18.77%14.67%
Return on Equity (Normalized)
−6.30%26.41%28.28%
Return on Invested Capital (Normalized)
−7.47%22.73%20.38%
Return on Assets
LAAC
ALTM
ALB
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