Last Updated: 16 Sep 2024
Executive Summary
Arcadium Lithium plc (ALTM) is a lithium exploration and development company focused on the production of battery-grade lithium hydroxide. The company has a market capitalization of $4.08 billion and is headquartered in Philadelphia, Pennsylvania. ALTM's financial performance has been strong in recent quarters, with revenue growing by 2.04% year-over-year and EBITDA increasing by 42.97% year-over-year. The company's profit margin is 37.4% and its return on assets is 9.43%. ALTM has a strong balance sheet with no debt and $1.07 billion in cash and cash equivalents.
Company Overview
Arcadium Lithium plc was founded in 2018 and is focused on the development of lithium resources in Argentina. The company has a portfolio of projects in various stages of development, including the Salar de Cauchari project in Jujuy, Argentina. The Salar de Cauchari project is one of the largest undeveloped lithium brine projects in the world, with an estimated resource of 4.8 million tonnes of lithium carbonate equivalent. ALTM is also exploring for lithium in other parts of Argentina, as well as in Chile and Bolivia.
Fundamental Analysis
ALTM's financial performance has been strong in recent quarters. Revenue grew by 2.04% year-over-year to $882.5 million in the most recent quarter. EBITDA increased by 42.97% year-over-year to $429.7 million. The company's profit margin is 37.4% and its return on assets is 9.43%. ALTM has a strong balance sheet with no debt and $1.07 billion in cash and cash equivalents.
Technical Analysis
ALTM's stock price has been trading in a range between $2.19 and $8.27 over the past 52 weeks. The stock is currently trading at $2.44, which is below its 50-day and 200-day moving averages. The relative strength index (RSI) is 35.67, which indicates that the stock is oversold.
Short Term Outlook
The short-term outlook for ALTM is mixed. The company's financial performance has been strong, but the stock price has been weak. The stock is currently trading below its moving averages and is oversold. This suggests that the stock could continue to decline in the short term.
Long Term Outlook
The long-term outlook for ALTM is positive. The company has a strong portfolio of lithium projects and is well-positioned to benefit from the growing demand for lithium. The company's financial performance is expected to continue to improve as its projects come online. This suggests that the stock could appreciate significantly over the long term.
Analyst Recommendations
The majority of analysts have a buy rating on ALTM. The average analyst target price is $8.76, which represents a potential upside of 257.8%.
