Sigma Lithium (SGML) AI Stock Analysis

• Market Cap: $1.52B
• Dividend Yield: N/A
• Average Volume (3M): 216.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.08
• Revenue Growth: -11.65%
• EPS Growth: 34.89%
• Country: CA
• Employees: 589
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.13
• Shares Outstanding: 111,383,980
• 10 Day Avg. Volume: 264,053
• 30 Day Avg. Volume: 216,184
• PEG Ratio: -0.32
• Price to Book (P/B): 13.46
• Price to Sales (P/S): 8.56
• P/FCF Ratio: -37.69
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 7.51
• Enterprise Value/Gross Profit: 69.83
• Enterprise Value/Ebitda: -43.39
• 1Y Price Target: $14.10
• Price Target Upside: 0.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: C$15.00 ▲(7.37% Upside)

Sigma Lithium's overall stock score is primarily influenced by its financial challenges, which are a significant concern. However, strong technical indicators and positive earnings call sentiment provide some optimism. The valuation remains a downside risk due to negative profitability metrics.

Positive Factors

Revenue Growth

Significant revenue growth indicates strong demand for lithium products and effective pricing strategies, supporting long-term financial health.

Financial Discipline

Reducing debt and increasing cash reserves enhance financial stability, providing more flexibility for future investments and growth.

Operational Excellence

Strong safety record reflects operational excellence, reducing potential liabilities and ensuring consistent production capabilities.

Negative Factors

Declining Revenue

Declining revenue and negative margins highlight operational inefficiencies, which could impact long-term profitability and competitiveness.

High Leverage

High leverage increases financial risk and limits the company's ability to invest in growth opportunities, affecting long-term stability.

Negative Cash Flow Trends

Negative cash flow trends suggest challenges in sustaining operations and funding growth, posing risks to financial health and strategic initiatives.

Sigma Lithium Business Overview & Revenue Model

Company Description

Sigma Lithium Corporation is a Canadian-based resource company focused on the exploration and development of lithium projects in Brazil. The company primarily operates in the mining sector and specializes in the production of high-quality lithium spodumene concentrate, which is a critical material used in the manufacturing of lithium-ion batteries. Sigma Lithium aims to supply the growing demand for lithium driven by the electric vehicle and renewable energy sectors, positioning itself as a key player in the transition to sustainable energy solutions.

How the Company Makes Money

Sigma Lithium generates revenue primarily through the sale of lithium spodumene concentrate to battery manufacturers and other industrial clients involved in the production of lithium-ion batteries. The company has established key partnerships and off-take agreements with major players in the electric vehicle and battery manufacturing industries, ensuring a steady demand for its products. Additionally, by focusing on sustainable mining practices and efficient production methods, Sigma Lithium aims to enhance its profitability while meeting the increasing global demand for lithium, particularly as countries shift towards greener technologies.

Sigma Lithium Financial Statement Overview

Summary

Sigma Lithium faces financial challenges with declining revenues, high leverage, and negative profitability. Positive aspects include a positive gross profit margin and a stable equity ratio, but operational inefficiencies and cash flow management need improvement.

Income Statement

Sigma Lithium's income statement shows a challenging financial position with declining revenue and negative profit margins. The TTM (Trailing-Twelve-Months) revenue has decreased by 22.31%, and the company is experiencing negative net and EBIT margins, indicating operational inefficiencies and profitability issues. However, the gross profit margin remains positive, suggesting some potential for cost management improvements.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.62, indicating significant leverage and potential financial risk. Return on equity is negative, reflecting ongoing losses. However, the company has maintained a stable equity ratio, suggesting a reasonable proportion of equity financing relative to total assets.

Cash Flow

Cash flow analysis indicates negative trends, with a significant decline in free cash flow growth and negative operating cash flow coverage. The free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to net losses, but overall cash flow management remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	160.04M	208.75M	181.23M	0.00	0.00	0.00
Gross Profit	17.22M	42.68M	88.90M	-102.00K	-57.61K	-59.15K
EBITDA	-27.72M	-32.27M	-4.91M	-126.68M	-31.99M	-1.57M
Net Income	-60.06M	-69.98M	-38.25M	-132.10M	-34.21M	-1.99M
Balance Sheet
Total Assets	458.75M	470.56M	487.24M	308.91M	193.78M	33.20M
Cash, Cash Equivalents and Short-Term Investments	20.62M	66.05M	64.40M	96.35M	154.31M	13.54M
Total Debt	234.28M	254.31M	176.63M	3.67M	514.52K	5.14M
Total Liabilities	333.32M	337.73M	272.95M	125.80M	8.72M	11.44M
Stockholders Equity	125.43M	132.83M	214.28M	183.11M	185.06M	21.76M
Cash Flow
Free Cash Flow	10.47M	-47.42M	-76.57M	-133.09M	-22.86M	-3.77M
Operating Cash Flow	20.97M	-24.35M	-30.79M	-5.44M	-4.26M	-2.42M
Investing Cash Flow	-22.94M	-32.56M	-82.22M	-132.53M	-18.60M	-2.38M
Financing Cash Flow	-74.24M	72.12M	77.83M	79.79M	165.15M	17.62M

Sigma Lithium Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 13.97 is above the 20-day moving average (MA) of 9.45, above the 50-day MA of 9.22, and above the 200-day MA of 10.22, indicating a bullish trend. The MACD of 1.27 indicates Negative momentum. The RSI at 69.24 is Neutral, neither overbought nor oversold. The STOCH value of 69.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SGML.

Sigma Lithium Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SGML	56 Neutral	$1.52B	―	-35.25%	―	-11.65%	34.89%
SLI	50 Neutral	C$1.08B	6.28	―	―	―	―
LAC	49 Neutral	$2.02B	―	-42.69%	―	―	-465.27%
FL	42 Neutral	C$151.17M	-9.30	-136.16%	―	―	29.98%
LITH	41 Neutral	C$116.08M	62.65	3.32%	―	―	-69.60%
LTH	30 Underperform	C$121.88M	-8.68	―	―	―	78.04%

Sigma Lithium Corporate Events

Sigma Lithium’s Earnings Call Highlights Robust Growth

Sigma Lithium Corporation’s recent earnings call painted a picture of robust financial health and strategic foresight, despite some operational hurdles. The sentiment was largely positive, buoyed by impressive revenue growth and financial discipline, although challenges such as production issues and the absence of a green premium were acknowledged. Overall, the company’s strategic planning and financial achievements were the highlights of the discussion.

Sigma Lithium Reports Strong Revenue Growth in Q3 2025

Sigma Lithium Corporation is a leading global producer of lithium, focusing on sustainable production for electric vehicle batteries and energy storage systems, operating one of the largest lithium production sites in Brazil. In its latest earnings report for the third quarter of 2025, Sigma Lithium announced a significant increase in net revenue, rising by 69% quarter-over-quarter and 36% year-over-year, attributed to strategic partnerships and effective management of lithium price fluctuations. The company generated $24 million from final price settlements and anticipates an additional $4 million from incremental settlements, alongside $33 million expected from the sale of high-purity lithium materials.

Sigma Lithium Reports Strong Revenue Growth and Operational Enhancements

Sigma Lithium reported a significant increase in net revenues for the third quarter of 2025, with a 69% rise quarter-over-quarter and 36% year-on-year, driven by a successful commercialization strategy and improved sales volumes. The company also announced plans to restart and fully ramp up its mining operations by early 2026, leveraging upgraded equipment and digitalized controls, which could enhance its industry positioning and operational efficiency.

The most recent analyst rating on (TSE:SGML) stock is a Hold with a C$8.00 price target. To see the full list of analyst forecasts on Sigma Lithium stock, see the TSE:SGML Stock Forecast page.

Sigma Lithium Joins Morgan Stanley National Security Index

Sigma Lithium has announced that its US-listed shares have been added to the Morgan Stanley National Security Stock Index, a thematic equity index that tracks companies contributing to national security and strategic infrastructure. This inclusion highlights Sigma Lithium’s role in the strategic materials sector and underscores its significance in the battery materials supply chain, potentially enhancing its market visibility and attracting more stakeholders interested in sustainable and secure energy solutions.

The most recent analyst rating on (TSE:SGML) stock is a Hold with a C$8.50 price target. To see the full list of analyst forecasts on Sigma Lithium stock, see the TSE:SGML Stock Forecast page.

Sigma Lithium Advances Sustainability and Efficiency in Mining Operations

Sigma Lithium has been recognized for its sustainability efforts by the Itausa and Arapyau Foundations, highlighting its green lithium production methods and environmental contributions. The company is upgrading its mining operations to enhance efficiency and competitiveness, aiming to reduce costs and increase production capacity, while maintaining high safety standards.

The most recent analyst rating on (TSE:SGML) stock is a Buy with a C$12.00 price target. To see the full list of analyst forecasts on Sigma Lithium stock, see the TSE:SGML Stock Forecast page.

Sigma Lithium to Announce Q3 2025 Earnings Amid Production Expansion

Sigma Lithium announced it will release its third quarter 2025 earnings results on November 14, 2025, before the market opens. The company is expanding its production capacity with a second plant to meet growing demand, reinforcing its position as a key player in the sustainable lithium market for electric vehicles.

The most recent analyst rating on (TSE:SGML) stock is a Hold with a C$8.50 price target. To see the full list of analyst forecasts on Sigma Lithium stock, see the TSE:SGML Stock Forecast page.

Sigma Lithium’s Earnings Call Highlights Resilience Amid Challenges

Sigma Lithium Corporation’s recent earnings call painted a picture of cautious optimism, highlighting the company’s robust production performance and strategic financial management. Despite facing challenges such as inventory management issues, delayed offtake agreements, and market volatility, Sigma’s strategic positioning and operational resilience were emphasized, suggesting a positive outlook moving forward.

Sigma Lithium Reports Strong Production Amid Revenue Dip

Sigma Lithium Corporation is a prominent global lithium producer focused on providing sustainable lithium concentrate for electric vehicle batteries, operating one of the largest lithium production sites in Brazil. In its latest earnings report for the second quarter of 2025, Sigma Lithium highlighted a significant increase in production volumes, achieving 68,368 tonnes of lithium oxide concentrate, which marks a 38% year-on-year growth. Despite a strategic decision to withhold products during periods of price volatility, resulting in a 62% decrease in sales revenue compared to the previous year, the company maintained its cost efficiency with cash operating costs significantly below targets.