Lithium Americas Corp Stock Buy Hold or Sell Recommendation
| LAC Stock | CAD 4.23 0.24 5.37% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Lithium Americas Corp is 'Strong Sell'. The recommendation algorithm takes into account all of Lithium Americas' available fundamental, technical, and predictive indicators you will find on this site.
Check out Lithium Americas Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Lithium and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Lithium Americas Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Lithium |
Execute Lithium Americas Buy or Sell Advice
The Lithium recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Lithium Americas Corp. Macroaxis does not own or have any residual interests in Lithium Americas Corp or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Lithium Americas' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | OK | Details | |
Volatility | Risky | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | About Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Lithium Americas Trading Alerts and Improvement Suggestions
| Lithium Americas is way too risky over 90 days horizon | |
| Lithium Americas appears to be risky and price may revert if volatility continues | |
| Lithium Americas has accumulated C$3.11 Million in debt which can lead to volatile earnings | |
| Net Loss for the year was (3.93 M) with profit before overhead, payroll, taxes, and interest of 0. | |
| Lithium Americas Corp has accumulated about 36.23 M in cash with (37.96 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.41. | |
| Latest headline from news.google.com: Lithium Americas Insiders Sell US1.2m Of Stock, Possibly Signalling Caution - Simply Wall St |
Lithium Americas Returns Distribution Density
The distribution of Lithium Americas' historical returns is an attempt to chart the uncertainty of Lithium Americas' future price movements. The chart of the probability distribution of Lithium Americas daily returns describes the distribution of returns around its average expected value. We use Lithium Americas Corp price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Lithium Americas returns is essential to provide solid investment advice for Lithium Americas.
| Mean Return | 0.53 | Value At Risk | -7.27 | Potential Upside | 10.36 | Standard Deviation | 5.69 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Lithium Americas historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Lithium Americas Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 42.0M | 64.5M | 362.5M | (316.1M) | 194.9M | 204.6M | |
| Free Cash Flow | (47.5M) | (92.7M) | (55.1M) | (71.9M) | (227.8M) | (216.4M) | |
| Depreciation | 1.1M | 687K | 925K | 1.7M | 196K | 186.2K | |
| Capital Expenditures | 29.9M | 61.8M | 1.9M | 6.7M | 189.8M | 199.3M | |
| Net Income | 51.7M | (36.2M) | (38.5M) | (93.6M) | (3.9M) | (4.1M) | |
| End Period Cash Flow | 83.6M | 148.1M | 510.6M | 194.5M | 195.5M | 205.3M | |
| Other Non Cash Items | 744K | 579K | (1.0M) | 12.9M | (31.5M) | (29.9M) | |
| Change To Inventory | 343K | 1.1M | (2.6M) | (9.3M) | (8.3M) | (7.9M) | |
| Investments | 79.0M | (6.1M) | (17.1M) | (230.9M) | (190.1M) | (180.6M) | |
| Net Borrowings | 17.3M | 65.8M | 36.2M | 163M | 187.5M | 196.8M | |
| Change To Netincome | (72.9M) | (540K) | (17.5M) | 5.4M | 4.9M | 5.1M |
Lithium Americas Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Lithium Americas or Metals & Mining sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Lithium Americas' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Lithium stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.51 | |
β | Beta against Dow Jones | 0.09 | |
σ | Overall volatility | 5.72 | |
Ir | Information ratio | 0.09 |
Lithium Americas Volatility Alert
Lithium Americas Corp shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Lithium Americas' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Lithium Americas' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Lithium Americas Fundamentals Vs Peers
Comparing Lithium Americas' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Lithium Americas' direct or indirect competition across all of the common fundamentals between Lithium Americas and the related equities. This way, we can detect undervalued stocks with similar characteristics as Lithium Americas or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Lithium Americas' fundamental indicators could also be used in its relative valuation, which is a method of valuing Lithium Americas by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Lithium Americas to competition |
| Fundamentals | Lithium Americas | Peer Average |
| Return On Equity | -0.0698 | -0.31 |
| Return On Asset | -0.0372 | -0.14 |
| Current Valuation | 441.66 M | 16.62 B |
| Shares Outstanding | 218.38 M | 571.82 M |
| Shares Owned By Insiders | 7.38 % | 10.09 % |
| Shares Owned By Institutions | 26.62 % | 39.21 % |
| Number Of Shares Shorted | 3 M | 4.71 M |
| Price To Earning | 30.33 X | 28.72 X |
| Price To Book | 0.98 X | 9.51 X |
| Price To Sales | 242.38 X | 11.42 X |
| EBITDA | (27.36 K) | 3.9 B |
| Net Income | (3.93 M) | 570.98 M |
| Cash And Equivalents | 36.23 M | 2.7 B |
| Cash Per Share | 0.41 X | 5.01 X |
| Total Debt | 3.11 M | 5.32 B |
| Debt To Equity | 71.50 % | 48.70 % |
| Current Ratio | 10.38 X | 2.16 X |
| Book Value Per Share | 3.02 X | 1.93 K |
| Cash Flow From Operations | (37.96 M) | 971.22 M |
| Short Ratio | 1.96 X | 4.00 X |
| Earnings Per Share | (0.16) X | 3.12 X |
| Target Price | 13.5 | |
| Beta | 1.58 | -0.15 |
| Market Capitalization | 1.28 B | 19.03 B |
| Total Asset | 439.5 M | 29.47 B |
| Retained Earnings | (264.36 M) | 9.33 B |
| Working Capital | 181.32 M | 1.48 B |
| Net Asset | 439.5 M |
Lithium Americas Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Lithium . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Lithium Americas Buy or Sell Advice
When is the right time to buy or sell Lithium Americas Corp? Buying financial instruments such as Lithium Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
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Check out Lithium Americas Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.