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TMC the metals company Inc. (TMC)
NASDAQ:TMC
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TMC the metals company Inc.
(NASDAQ:TMC)
37Underperform
TMC the metals company Inc. (TMC) vs. S&P 500 (SPY)
Market Cap
$626.38M
Dividend YieldN/A
Average Volume (3M)2.19M
Price to Earnings (P/E)―
Beta (1Y)1.44
Revenue GrowthN/A
EPS Growth28.23%
CountryUS
Employees46
SectorBasic Materials
Sector Strength61
IndustryIndustrial Materials
Share Statistics
EPS (TTM)-0.36
Shares Outstanding344,162,660
10 Day Avg. Volume1,172,904
30 Day Avg. Volume2,189,021
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1439.41
Price to Cash Flow (P/CF)-25.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.75Price Target Upside110.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
TMC the metals company Inc. Business Overview & Revenue Model
Company DescriptionTMC the metals company Inc. (TMC) is a company focused on the exploration and development of deep-sea mineral resources. It operates in the natural resources sector, with a particular emphasis on harvesting polymetallic nodules found on the ocean floor. These nodules contain valuable metals such as nickel, cobalt, manganese, and copper, which are essential for the production of electric vehicle batteries and renewable energy technologies.
How the Company Makes MoneyTMC the metals company Inc. generates revenue primarily through the exploration and potential extraction of polymetallic nodules from the ocean floor. The company's revenue model is based on the sale of these metals, which are in high demand for use in electric vehicles, renewable energy systems, and other technological applications. TMC may partner with technology companies, automotive manufacturers, or metal processing firms to facilitate the sale and distribution of these resources. Additionally, the company might engage in joint ventures or strategic alliances with other entities in the mining and technology sectors to enhance its operational capabilities and market reach. Revenue is also influenced by factors such as commodity prices, regulatory approvals, and technological advancements in deep-sea mining.
TMC the metals company Inc. Financial Statement Overview
Summary
TMC is experiencing significant financial difficulties with negative revenue growth, high costs, and consistent losses. The balance sheet shows high liabilities and negative equity, while cash flow statements indicate ongoing cash burn and inefficiencies.Income Statement
The company has been struggling with negative revenue growth and consistent losses. The gross profit margin is negative due to high costs relative to revenue, and the net profit margin is also negative, indicating unprofitability. EBIT and EBITDA margins are significantly negative, suggesting operational inefficiencies.20
Very Negative
Balance Sheet
The balance sheet reveals high liabilities compared to assets, resulting in negative stockholders' equity. The debt-to-equity ratio is unfavorable, and the company has negative equity, indicating financial instability. Return on equity is not applicable due to negative equity, and the equity ratio shows a weak capital structure.15
Very Negative
Cash Flow
The cash flow statement highlights negative operating and free cash flows, indicating cash burn. The company struggles with generating cash from operations, and free cash flow growth is negative, pointing to ongoing financial challenges. The operating cash flow to net income ratio is not favorable, showing inefficiency in cash generation.25
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 20.18M | 72.03M | 0.00 | 0.00 | 0.00 | 0.00 | Gross Profit |
| -20.26M | -360.00K | -174.12M | -149.59M | -562.00K | 0.00 | EBIT |
| -98.20M | -72.39M | -174.12M | -149.59M | -56.60M | -9.04K | EBITDA |
| -98.31M | -73.38M | -173.70M | -139.84M | -56.07M | -41.74M | Net Income Common Stockholders |
| -113.09M | -73.78M | -170.96M | -133.01M | -56.66M | -9.04K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 15.95M | 6.84M | 46.84M | 84.87M | 10.10M | 15.95M | Total Assets |
| 622.10K | 68.90M | 94.78M | 133.13M | 54.69M | 119.62K | Total Debt |
| 146.31K | 14.00M | 0.00 | 0.00 | 0.00 | 0.00 | Net Debt |
| 16.10M | -6.84M | -46.84M | -84.87M | -10.10M | -15.95M | Total Liabilities |
| 665.13K | 57.98M | 53.27M | 40.37M | 18.43M | 103.66K | Stockholders Equity |
| 8.19M | 10.92M | 41.51M | 92.75M | 36.25M | 15.96K |
| Cash Flow | Free Cash Flow | ||||
| -45.71M | -60.15M | -67.81M | -56.49M | -27.14M | ― | Operating Cash Flow |
| -44.89M | -59.57M | -66.64M | -56.09M | -26.53M | ― | Investing Cash Flow |
| -5.87M | -578.00K | -1.17M | -3.84M | -607.00K | ― | Financing Cash Flow |
| 28.16M | 20.07M | 29.72M | 134.70M | 21.29M | 26.51K |
TMC the metals company Inc. Technical Analysis
Positive
1.78
Price Trends
1.73
Positive
1.33
Positive
1.24
Positive
Market Momentum
0.02
Positive
49.55
Neutral
47.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TMC, the sentiment is Positive. The current price of 1.78 is below the 20-day moving average (MA) of 1.79, above the 50-day MA of 1.73, and above the 200-day MA of 1.24, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.55 is Neutral, neither overbought nor oversold. The STOCH value of 47.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TMC.
TMC the metals company Inc. Risk Analysis
TMC the metals company Inc. disclosed 58 risk factors in its most recent earnings report. TMC the metals company Inc. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TMC the metals company Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $79.94B | 23.37 | 40.71% | 1.96% | 15.54% | 39.64% | |
66 Neutral | $4.23B | ― | -5.41% | ― | -19.57% | -392.96% | |
59 Neutral | $29.94B | 94.46 | 1.26% | 0.88% | -10.03% | -86.30% | |
50 Neutral | $156.02M | ― | -6.55% | ― | ― | ― | |
47 Neutral | $2.66B | -3.61 | -22.67% | 3.28% | 3.74% | -27.14% | |
42 Neutral | $949.95M | ― | -4.13% | ― | ― | ― | |
37 Underperform | $626.38M | ― | -667.42% | ― | ― | 28.23% |
* Basic Materials Sector Average
Performance Comparison
TMC
TMC the metals company Inc.
1.78
0.23
14.84%
SCCO
Southern Copper
99.64
0.70
0.71%
TSE:TECK.B
Teck Resources
60.02
2.32
4.02%
PLL
Piedmont Lithium
6.99
-5.26
-42.94%
MP
MP Materials
26.46
12.64
91.46%
TSE:LAC
Lithium Americas Corp.
4.26
-5.04
-54.19%
TMC the metals company Inc. Earnings Call Summary
Earnings Call Date: Nov 14, 2024 | % Change Since: 85.42% | Next Earnings Date: Mar 27, 2025
Earnings Call Sentiment Neutral
The call highlighted TMC's strategic steps towards financial and operational resilience, including new funding, cost-cutting measures, and potential new revenue streams from a services business. However, regulatory uncertainties and increased expenses pose challenges. The sentiment leans towards optimism but is tempered by ongoing hurdles.Highlights
Successful Funding and Financial Resilience
TMC announced a registered direct offering led by their largest nonaffiliated institutional shareholder, ensuring financial resiliency. They have over $60 million in credit facility capacity.
New Services Business Development
TMC is developing a new services business for seafloor resource development, engaging in discussions for service contracts to leverage their expertise in exploration, resource definition, and environmental impact assessments.
Completion of Pre-Feasibility Study
TMC completed a pre-feasibility study for a capital-light strategy, with further details to be shared in an upcoming Strategy Day.
Government Engagement and Potential Support
TMC is optimistic about a $9 million grant application from the Pentagon for refining capacity in the U.S. and sees potential increased government support following the U.S. election results.
Cost Reduction Strategy
TMC plans to cut operational spending to less than $5 million per quarter and delay capital expenditures until certain regulatory milestones are achieved.
Lowlights
Regulatory Uncertainty and Delays
TMC is facing regulatory uncertainty, particularly with the ISA Mining Code, which is seen as a significant factor depressing their stock value.
Increased Expenses
Exploration and evaluation expenses increased to $11.8 million in Q3 2024 from $7.9 million in Q3 2023, and general and administrative expenses rose to $8.2 million from $4.6 million in the same period.
Stock Performance Concerns
TMC's market cap is noted to be below the total capital raised, leading to frustration over the current valuation compared to past funding rounds.
Company Guidance
During TMC's Q3 2024 earnings call, significant guidance was provided on several key metrics and strategic decisions. The company announced plans to submit NORI's application for an exploitation contract on June 27, 2025, and highlighted a registered direct offering led by a major institutional shareholder to bolster financial resilience. TMC aims to cut operating expenses to under $5 million per quarter and deferred capital expenditures for the Hidden Gem vessel until regulatory clarity is achieved. The company's free cash flow for Q3 2024 was negative $5.8 million, compared to negative $4.6 million in the same quarter of 2023. Additionally, TMC is developing a new services business targeting seafloor resource development, leveraging over $0.5 billion in investments and capabilities, with discussions already underway with potential clients. The strategic focus extends beyond the NORI application, aiming to position TMC as a key player in the evolving landscape of seafloor mining.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.