Sigma Lithium (SGML) AI Stock Analysis

• Market Cap: $1.08B
• Dividend Yield: N/A
• Average Volume (3M): 71.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.38
• Revenue Growth: 11.53%
• EPS Growth: -154.63%
• Country: CA
• Employees: 589
• Sector: Basic Materials
• Sector Strength: 72
• Industry: Industrial Materials
• EPS (TTM): N/A
• Shares Outstanding: 111,281,980
• 10 Day Avg. Volume: 72,301
• 30 Day Avg. Volume: 71,270
• 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: $16.49
• Price Target Upside: 82.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: C$9.50 ▲(5.32%Upside)

Sigma Lithium's score is driven by strong operational efficiencies and strategic positioning, offset by profitability challenges and high debt levels. Technical indicators show positive momentum, but valuation metrics reflect financial struggles.

Positive Factors

Analyst Rating

Analyst reiterates an outperform rating and maintains a target price of US$18, indicating confidence in the stock's potential.

Financial Flexibility

Sigma seems to have ample financial flexibility.

Resource and Reserve Estimates

Updated 43-101 report shows a significant increase in both resource and reserve estimates, enhancing the company's asset base.

Negative Factors

Development Funding

Still awaiting bank guarantee for a US$100M BNDES loan, which is crucial for the next phase of development.

Earnings Performance

Q4 adjusted EBITDA missed consensus estimates, primarily due to lower than expected sales prices and production volumes.

Liquidity Needs

The company plans to sell some of its future sales ahead for prepayment to cover any near-term liquidity needs.

Sigma Lithium Business Overview & Revenue Model

Company Description

Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil. It holds 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 27 mineral rights covering an area of approximately 191 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil. The company was formerly known as Sigma Lithium Resources Corporation and changed its name to Sigma Lithium Corporation in July 2021. Sigma Lithium Corporation is headquartered in São Paulo, Brazil.

How the Company Makes Money

Sigma Lithium generates revenue through the extraction and sale of lithium concentrate, which is a critical component in the production of lithium-ion batteries. The company primarily monetizes its operations by selling its high-purity lithium concentrate to battery manufacturers and other stakeholders within the electric vehicle and renewable energy sectors. Sigma Lithium's revenue model is heavily reliant on the growing demand for electric vehicles and the subsequent need for reliable battery materials. Strategic partnerships with key industry players and long-term supply agreements are significant factors that contribute to the company's earnings, providing both stability and growth potential in a competitive market.

Sigma Lithium Financial Statement Overview

Summary

Sigma Lithium shows a positive revenue trajectory, increasing from $0 in 2022 to $208.7M in 2024. However, the company is struggling with profitability, as evidenced by negative EBIT and net income margins over the years. The gross profit margin improved in 2023 but declined significantly in 2024. The EBIT and EBITDA margins remain negative, indicating operational challenges. The company has a high debt-to-equity ratio, suggesting elevated financial leverage. Cash flow issues persist, but strategic investments and financing efforts indicate a focus on long-term growth.

Income Statement

Sigma Lithium shows a positive revenue trajectory, increasing from $0 in 2022 to $208.7M in 2024. However, the company is struggling with profitability, as evidenced by negative EBIT and net income margins over the years. The gross profit margin improved in 2023 but declined significantly in 2024. The EBIT and EBITDA margins remain negative, indicating operational challenges.

Balance Sheet

The company has a high debt-to-equity ratio, increasing from 0.02 in 2022 to 1.91 in 2024, which suggests elevated financial leverage. Stockholders' equity has decreased, impacting the equity ratio. However, the increase in total assets indicates potential growth, although it is accompanied by rising liabilities.

Cash Flow

Sigma Lithium's cash flow shows negative free cash flow, signaling ongoing cash burn. The operating cash flow to net income ratio is negative, reflecting operational losses. Despite this, investing and financing activities suggest the company is investing in growth and securing financing 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

Sigma Lithium Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.02
• 50DMA: Positive
• 100DMA: Negative
• 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:SGML, the sentiment is Neutral. The current price of 9.02 is above the 20-day moving average (MA) of 8.21, above the 50-day MA of 7.57, and below the 200-day MA of 13.92, indicating a neutral trend. The MACD of 0.58 indicates Negative momentum. The RSI at 57.61 is Neutral, neither overbought nor oversold. The STOCH value of 62.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:SGML.

Sigma Lithium Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGML	60 Neutral	$1.08B	―	-30.69%	―	11.53%	-154.63%
Sector *	59 Neutral	HK$17.33B	4.65	-5.52%	3.47%	-3.57%	-61.41%
SLI	50 Neutral	C$712.98M	4.97	61.89%	―	―	-132.80%
FL	42 Neutral	C$123.13M	―	-82.26%	―	―	25.32%
LITH	41 Neutral	C$119.84M	18.77	11.66%	―	―	-7.56%
LTH	30 Underperform	C$112.87M	―	-1139.82%	―	―	60.89%
LAC	―	$621.43M	―	-8.91%	―	―	―

Sigma Lithium Corporate Events

Sigma Lithium Reports Strong Q1 2025 Results with Production and Cost Efficiency Gains

Sigma Lithium reported strong financial results for the first quarter of 2025, with a net income of $4.7 million and significant improvements in production and cost efficiency. The company achieved a 26% year-on-year increase in lithium concentrate production and a 17% increase in sales volumes. With production costs below target and uncommitted production, Sigma Lithium has the potential to secure financing through prepayment and offtake agreements, supporting the construction of Plant 2 and enhancing financial flexibility. These developments underscore Sigma Lithium’s strategic focus on cash generation and operational efficiency, reinforcing its long-term resilience and industry positioning.

The most recent analyst rating on (TSE:SGML) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on Sigma Lithium stock, see the TSE:SGML Stock Forecast page.

Sigma Lithium Surpasses Q1 Targets, Strengthens Community Ties in Brazil

Sigma Lithium announced a strong first quarter in 2025, surpassing production targets with a 26% increase over the previous year and achieving a 24% EBITDA margin. The company has received significant community and governmental support in Brazil, contributing to regional prosperity through job creation and social programs.