Largo Inc
TSX:LGO

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Largo Inc Logo
Largo Inc
TSX:LGO
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Price: 3.19 CAD -0.62% Market Closed
Market Cap: 204.5m CAD
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Intrinsic Value

The intrinsic value of one LGO stock under the Base Case scenario is 4.21 CAD. Compared to the current market price of 3.19 CAD, Largo Inc is Undervalued by 24%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

LGO Intrinsic Value
4.21 CAD
Undervaluation 24%
Intrinsic Value
Price
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Base Case
Best Case

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Largo Inc

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Financials
Annual
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Balance Sheet Decomposition
Largo Inc

Current Assets 113.1m
Cash & Short-Term Investments 35.8m
Receivables 16.1m
Other Current Assets 61.1m
Non-Current Assets 224m
PP&E 187.1m
Intangibles 2.7m
Other Non-Current Assets 34.2m
Current Liabilities 53.2m
Accounts Payable 28.2m
Short-Term Debt 13.5m
Other Current Liabilities 11.5m
Non-Current Liabilities 84.3m
Long-Term Debt 71.3m
Other Non-Current Liabilities 13m
Efficiency

Earnings Waterfall
Largo Inc

Revenue
158.9m USD
Cost of Revenue
-171.3m USD
Gross Profit
-12.4m USD
Operating Expenses
-36.4m USD
Operating Income
-48.8m USD
Other Expenses
-1.8m USD
Net Income
-50.6m USD

Free Cash Flow Analysis
Largo Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

In Q2 2024, Largo reported a net loss of $14.5 million due to low vanadium prices and nonrecurring expenses. However, the company saw improvements in vanadium and ilmenite production, meeting their guidance of 2,400-2,900 tonnes of V2O5. They implemented cost-reduction initiatives, resulting in a 10% decrease in June 2024 costs. Despite a challenging market, Largo achieved positive adjusted EBITDA for its mining segment. Going forward, the company remains optimistic about demand uplift from new Chinese standards and looks to advance clean energy projects through a potential partnership with Stryten Energy.

What is Earnings Call?
Fundamental Scores

LGO Profitability Score
Profitability Due Diligence

Largo Inc's profitability score is 28/100. The higher the profitability score, the more profitable the company is.

Negative Gross Profit
Positive Revenue Growth Forecast
Negative 3-Years Revenue Growth
Negative Operating Income
28/100
Profitability
Score

Largo Inc's profitability score is 28/100. The higher the profitability score, the more profitable the company is.

LGO Solvency Score
Solvency Due Diligence

Largo Inc's solvency score is 39/100. The higher the solvency score, the more solvent the company is.

Low D/E
Long-Term Solvency
Short-Term Solvency
Positive Net Debt
39/100
Solvency
Score

Largo Inc's solvency score is 39/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

LGO Price Targets Summary
Largo Inc

Wall Street analysts forecast LGO stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for LGO is 4.9 CAD with a low forecast of 4.44 CAD and a high forecast of 5.25 CAD.

Lowest
Price Target
4.44 CAD
39% Upside
Average
Price Target
4.9 CAD
53% Upside
Highest
Price Target
5.25 CAD
65% Upside
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Dividends

Largo Inc
does not pay dividends
Shareholder Yield

Current shareholder yield for LGO is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
No dividends
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Profile

Largo Inc Logo
Largo Inc

Country

Canada

Industry

Metals & Mining

Market Cap

205.8m CAD

Dividend Yield

0%

Description

Largo Inc. engages in the exploration and production of vanadium at the Maracas Menchen Mine located in Brazil. The company is headquartered in Toronto, Ontario and currently employs 478 full-time employees. The firm is into the development and sale of vanadium-based utility scale electrical energy storage systems to support the planets to renewable energy. The Company’s product includes VPURE Flakes, VPURE+ Flakes, VPURE+ Powder and Largo clean energy. Its products are sourced from vanadium deposits at the Maracas Menchen Mine in Brazil. Its VPURE Flakes are used to produce ferrovanadium and vanadium carbon nitride. The VPURE+ Flakes are used in the production of master alloys, where it provides high strength-to-weight ratios for the titanium alloy and aerospace industries. Largo Clean Energy utilizes flow battery stack technology and vanadium electrolyte processing technology to develop and deploy its VCHARGE battery systems. Its VCHARGE system is an energy storage battery that uses vanadium electrolyte liquid solution to store and release energy.

Contact

ONTARIO
TORONTO
65 Queen Street West, Suite 820
+14168619797.0
largoinc.com

IPO

1990-03-09

Employees

478

Officers

Interim CEO & Director
Mr. Daniel R. Tellechea B.Sc., MBA
Chief Commercial Officer
Mr. Francesco D'Alessio
Chief Operating Officer of Brazil
Mr. Celio Pereira
Chief Financial Officer & Corporate Controller
Mr. David Harris
Director of Investor Relations
Alex Guthrie
General Counsel & Corporate Secretary
Liz Valente

See Also

Discover More
What is the Intrinsic Value of one LGO stock?

The intrinsic value of one LGO stock under the Base Case scenario is 4.21 CAD.

Is LGO stock undervalued or overvalued?

Compared to the current market price of 3.19 CAD, Largo Inc is Undervalued by 24%.

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