One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Sigma Lithium Corporation
SGML · NCM · Basic Materials · Other Industrial Metals & Mining
Current price
$5.35
52-week range
$4.81 - $24.48
Market cap
$602.24M
Balance sheet
Distressed
-0.54x Concerning
Net debt $260.31M. Interest coverage shows how many times profit covers the interest bill.
What stands out
0 Rewards
2 Risks
0 rewards · 2 risks
- Risk Return on equity was -31.6% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 3.3% (peer median: 7.5%).
What this company does
Sigma Lithium Corporation
Sigma Lithium Corporation explores and develops lithium deposits in Brazil, crucial for the electric vehicle battery supply chain. This means they're digging up the raw materials that go into making batteries for electric cars. Their success directly impacts the availability and cost of these batteries, which is important for the growth of the electric vehicle market.
How the company got here
Sigma Lithium Corporation, formerly known as Sigma Lithium Resources Corporation, was founded in 2011 and changed its name in July 2021. The company went public on the Nasdaq Capital Market in September 2021. Sigma Lithium's journey has been focused on exploring and developing lithium deposits in Brazil, specifically in the state of Minas Gerais. The company's core strategy has always been centered around producing lithium concentrate for the electric vehicle battery supply chain, with a strong emphasis on environmental and social sustainability from its inception. This commitment to ESG (Environmental, Social, and Governance) principles has guided its development and operations.
What it actually does
Sigma Lithium is a mining company that extracts and processes lithium, a key component in batteries for electric vehicles and energy storage systems. They operate in Brazil, focusing on environmentally sustainable methods to produce high-purity lithium concentrate. This concentrate is then supplied to the global battery supply chain, supporting the transition to cleaner energy and transportation.
Lithium Concentrate Production
Sigma Lithium's primary business is the production of lithium concentrate. They extract lithium-bearing minerals from their Grota do Cirilo operations in Brazil. This raw material is then processed at their "Greentech Plant" into a high-purity lithium concentrate. This concentrate is a crucial ingredient for manufacturers of lithium-ion batteries, which power electric vehicles and other electronic devices. The company emphasizes that its production process is environmentally friendly, using 100% recycled water, renewable energy, and avoiding toxic chemicals and tailings (waste material from mining).
What management is betting on now
Management is focused on expanding the company's production capacity to meet the growing global demand for lithium. They are currently progressing through Phase 2 and Phase 3 expansions of their operations, which aim to significantly increase the amount of lithium concentrate they can produce annually. This expansion is crucial for Sigma Lithium to solidify its position as a major supplier in the electric vehicle battery supply chain and to capitalize on the increasing demand for sustainable energy solutions.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value — vs current price $5.35
We couldn't calculate a fair value right now.
Is it drowning in debt?
Distressed
Net debt $260.3M. Interest coverage -0.5x.
Net debt
$260.31M
Interest coverage
-0.54x
Sigma Lithium Corporation's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
SGML
BASELINE
Sigma Lithium Corporation
Total debt $276.97M Interest coverage -0.54x This is the baseline the peer rows are being compared against.
Total debt $78.09M Interest coverage 0.17x This peer still has a real interest-payment cushion, while SGML does not.
Total debt $166.00K Interest coverage -723.73x Neither company has much profit cushion over interest right now.
What you should know
The case for and against SGML
0 Rewards
2 Risks
Rewards
Risks
-
Return on equity was -31.6% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 3.3% (peer median: 7.5%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
2.92x
P/B
7.29x
P/S
4.23x
EV/EBITDA
21.48x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
49.1%
Operating margin
24.6%
Net margin
-19.3%
ROE
-31.6%
ROA
4.1%
Health
Liquidity and balance-sheet strength
Debt / equity
3.37x
Current ratio
0.34x
Quick ratio
0.18x
Total debt
$276.97M
Total cash
$16.66M
Growth
How the business has been compounding
Revenue TTM
$142.49M
Revenue 5Y CAGR
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EPS TTM
-0.24
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$2.44M
Free CF TTM
$-8.44M
FCF margin
-5.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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