Largo Resources (LGO) AI Stock Analysis

• Market Cap: $140.44M
• Dividend Yield: N/A
• Average Volume (3M): 38.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: -37.62%
• EPS Growth: -12.09%
• Country: CA
• Employees: 500
• Sector: Basic Materials
• Sector Strength: 72
• Industry: Industrial Materials
• EPS (TTM): -0.19
• Shares Outstanding: 64,128,000
• 10 Day Avg. Volume: 59,181
• 30 Day Avg. Volume: 38,297
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.04
• Price Target Upside: 99.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 48 Neutral
• Price Target: C$2.00 ▼(-0.99%Downside)

The overall stock score reflects significant financial challenges and valuation concerns, which are partially offset by positive technical indicators and corporate developments. Declining financial performance remains the most significant risk, despite operational improvements.

Positive Factors

Joint Ventures

The Storion Joint Venture has struck a deal to supply high-quality vanadium electrolyte to TerraFlow Energy, thereby advancing the adoption of vanadium flow batteries.

Operational Improvements

Notable progress on operational turnaround with improved production rates for V concentrate, including a 75% increase in May.

Negative Factors

Commodity Risks

Commodity price risks, political risks, and operating challenges are identified as potential risks.

Revenue Decline

Largo's notable decrease in revenue was driven by a sharp decline in the company's production and further exacerbated by weakness in the market price of vanadium.

Largo Resources Business Overview & Revenue Model

Company Description

Largo Inc. engages in the development and sale of vanadium-based utility scale electrical energy storage systems in Canada. The company operates in five segments: Sales & Trading, Mine Properties, Corporate, Exploration and Evaluation Properties, and Largo Clean Energy. Its products include VPURE+ vanadium flakes that are used in the production of master alloys and aerospace applications; VPURE vanadium flakes ferrovanadium and vanadium carbon nitride for the steel industry; and VPURE+ vanadium powder for catalyst applications. The company offers renewable energy solutions through Largo Clean Energy. Its products are sourced from vanadium deposits at the Maracás Menchen Mine in Brazil. The company was formerly known as Largo Resources Ltd. and changed its name to Largo Inc. in November 2021. Largo Inc. was incorporated in 1988 and is headquartered in Toronto, Canada.

How the Company Makes Money

Largo Resources generates revenue primarily through the extraction, processing, and sale of vanadium products. The company's main revenue stream is the sale of vanadium flake and powder, which are used as additives to strengthen steel and in the production of high-performance alloys. Additionally, Largo has expanded its business model to include the development of vanadium-based energy storage systems, aiming to capitalize on the growing demand for renewable energy solutions. Key factors contributing to Largo's earnings include its operational efficiency at the Maracás Menchen Mine, strategic sales agreements, and partnerships within the vanadium supply chain. The company's ability to maintain high production quality and meet global demand for vanadium significantly influences its financial performance.

Largo Resources Financial Statement Overview

Summary

Largo Resources faces significant financial challenges, with declining revenues, negative profit margins, and cash flow difficulties. The balance sheet shows moderate leverage, but the negative return on equity reflects ongoing losses. Immediate financial restructuring and strategic initiatives are required to improve financial health.

Income Statement

Largo Resources has shown a significant decline in revenue over the TTM period, with a negative revenue growth rate and negative profit margins. Gross profit margin and EBIT margin are substantially negative, indicating operating inefficiencies. The net profit margin is also deeply negative, highlighting ongoing profitability challenges.

Balance Sheet

The company has a moderate debt-to-equity ratio, which suggests a balanced use of debt and equity. However, the return on equity is negative due to net losses, indicating a lack of shareholder value creation. The equity ratio is stable, suggesting a solid asset base compared to liabilities.

Cash Flow

The cash flow situation is concerning, with negative operating and free cash flows. The free cash flow has significantly worsened, and the operating cash flow to net income ratio is negative, indicating cash flow inefficiencies and insufficient cash generation to support operations.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Largo Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LGO, the sentiment is Positive. The current price of 2.02 is above the 20-day moving average (MA) of 1.97, above the 50-day MA of 1.86, and below the 200-day MA of 2.41, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 60.48 is Neutral, neither overbought nor oversold. The STOCH value of 48.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LGO.

Largo Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LGO	48 Neutral	$140.44M	―	-23.26%	―	-37.62%	-12.09%
Sector *	44 Neutral	C$969.39M	-6.88	-13.68%	2.10%	17.43%	-32.98%
AHR	34 Underperform	C$154.79M	―	-769.76%	―	―	37.82%
PWM	―	C$121.96M	―	-0.28%	―	―	―
FL	42 Neutral	C$120.85M	―	-82.26%	―	―	25.32%
MSR	42 Neutral	C$116.83M	12.13	70.41%	―	―	―
LITH	41 Neutral	C$119.84M	18.77	11.66%	―	―	-7.56%

Largo Resources Corporate Events

Largo Inc. Reports Significant Production Gains Amid Operational Turnaround

Largo Inc. has reported significant progress in its operational turnaround efforts, marked by a substantial increase in production rates for vanadium pentoxide and ilmenite concentrate in May 2025. The company achieved a 75% increase in V₂O₅ production and a 65% increase in ilmenite concentrate production compared to April 2025, thanks to enhanced access to key mining areas and improved plant stability. These developments are part of Largo’s broader strategy to optimize resource recovery and enhance sustainable mining practices. Despite a recent default notice from a counterparty regarding V₂O₅ delivery, Largo remains optimistic about its production outlook for June 2025 and aims to meet its annual production guidance.

The most recent analyst rating on (TSE:LGO) stock is a Buy with a C$5.00 price target. To see the full list of analyst forecasts on Largo Resources stock, see the TSE:LGO Stock Forecast page.

Largo Inc. Secures $10 Million Factoring Facility to Boost Liquidity

Largo Inc. announced a $10 million non-recourse factoring facility through its subsidiary, Largo Resources USA, to monetize accounts receivable from vanadium product sales. This facility aims to improve working capital efficiency by providing quicker access to liquidity, aligning cash inflows with expenditures, and supporting day-to-day operations as part of the company’s operational turnaround plan. The facility may expand to $30 million, subject to customer and credit approvals, and is expected to enhance Largo’s financial flexibility, aiding in stabilizing production and improving sales.

The most recent analyst rating on (TSE:LGO) stock is a Buy with a C$5.00 price target. To see the full list of analyst forecasts on Largo Resources stock, see the TSE:LGO Stock Forecast page.

Largo Inc. Reports Successful Shareholder Meeting Outcomes

Largo Inc. announced the successful results of its Annual General Meeting of Shareholders, with 71.17% of common shares voted. Shareholders approved all matters, including the election of director nominees and the appointment of KPMG LLP as auditors. The Board expressed gratitude for shareholder support, highlighting the company’s strong governance and operational focus.

The most recent analyst rating on (TSE:LGO) stock is a Buy with a C$5.00 price target. To see the full list of analyst forecasts on Largo Resources stock, see the TSE:LGO Stock Forecast page.