Largo Inc. (LGO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Discovery Silver Corp.

Imperial Metals Corp.

5N Plus, Inc.

Largo Inc.

Western Copper & Gold Corp.

Bravo Mining Corp.

Los Andes Copper Ltd.

Li-FT Power Ltd.

Frontier Lithium, Inc.

Canadian North Resources, Inc.

Alpha Lithium Corp.

Why is Largo Inc. ?

The company has declared Negative results for the last 10 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CAD -5.06 MM
NET SALES(HY) At CAD 76.66 MM has Grown at -20.12%
DEBT-EQUITY RATIO (HY) Highest at 54.58 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 14.66%, its profits have risen by 22.2%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Minerals & Mining)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Largo Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Largo Inc.

-42.65%

2.47

69.99%

S&P/TSX 60

21.87%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.17%

EBIT Growth (5y)

-232.37%

EBIT to Interest (avg)

7.21

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.51

Sales to Capital Employed (avg)

0.53

Tax Ratio

28.15%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

64.03%

ROCE (avg)

5.15%

ROE (avg)

2.78%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.76

EV to EBIT

-4.77

EV to EBITDA

-11.15

EV to Capital Employed

0.86

EV to Sales

1.75

PEG Ratio

Dividend Yield

ROCE (Latest)

-18.12%

ROE (Latest)

-48.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

NET PROFIT(HY)

Higher at CAD -57.63 MM

NET SALES(Q)

Highest at CAD 45.81 MM

-32What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 2.75 MM

ROCE(HY)

Lowest at -40.31%

DEBT-EQUITY RATIO (HY)

Highest at 75.08 %

RAW MATERIAL COST(Y)

Grown by 341.03% (YoY

CASH AND EQV(HY)

Lowest at CAD 19.63 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.67 times

INTEREST(Q)

Highest at CAD 5.62 MM

NET PROFIT(Q)

Lowest at CAD -50.16 MM

EPS(Q)

Lowest at CAD -0.79

Here's what is working for Largo Inc.

Net Sales

Highest at CAD 45.81 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Here's what is not working for Largo Inc.

Net Profit

At CAD -50.16 MM has Fallen at -325.91%

over average net sales of the previous four periods of CAD -11.78 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Operating Cash Flow

Lowest at CAD 2.75 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Interest

At CAD 5.62 MM has Grown at 37.63%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Debt-Equity Ratio

Highest at 75.08 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at CAD 5.62 MM

in the last five periods and Increased by 37.63% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Net Profit

Lowest at CAD -50.16 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD -0.79

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Cash and Eqv

Lowest at CAD 19.63 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 2.67 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 341.03% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales