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

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

5N Plus, Inc.

Discovery Silver Corp.

Imperial Metals Corp.

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.

-51.33%

2.47

69.99%

S&P/TSX 60

19.1%

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)

-274.38%

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)

0.56

Tax Ratio

28.15%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

66.77%

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

0.58

EV to EBIT

-4.11

EV to EBITDA

-9.02

EV to Capital Employed

0.73

EV to Sales

1.65

PEG Ratio

Dividend Yield

ROCE (Latest)

-17.70%

ROE (Latest)

-21.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

No Trend

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

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -51.94% (YoY

PRE-TAX PROFIT(Q)

Highest at CAD -7.79 MM

NET PROFIT(Q)

Highest at CAD -7.47 MM

EPS(Q)

Highest at CAD -0.12

-16What is not working for the Company

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 %

CASH AND EQV(HY)

Lowest at CAD 20.89 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.63%

INTEREST(Q)

Highest at CAD 4.08 MM

Here's what is working for Largo Inc.

Pre-Tax Profit

Highest at CAD -7.79 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Pre-Tax Profit

At CAD -7.79 MM has Grown at 62.38%

over average net sales of the previous four periods of CAD -20.7 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD -7.47 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD -0.12

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Raw Material Cost

Fallen by -51.94% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Here's what is not working for Largo Inc.

Operating Cash Flow

Lowest at CAD -5.06 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 4.08 MM has Grown at 32.32%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Net Sales

At CAD 76.66 MM has Grown at -20.12%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Debt-Equity Ratio

Highest at 54.58 % 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 4.08 MM

in the last five periods and Increased by 32.32% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Cash and Eqv

Lowest at CAD 20.89 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 6.63%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio