Sigma Lithium (SGML) AI Stock Analysis

• Market Cap: C$1.57B
• Dividend Yield: N/A
• Average Volume (3M): 145.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.16
• Revenue Growth: -11.65%
• EPS Growth: 34.89%
• Country: CA
• Employees: 589
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.11
• Shares Outstanding: 111,383,980
• 10 Day Avg. Volume: 79,663
• 30 Day Avg. Volume: 145,853
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$13.79
• Price Target Upside: -7.17% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: C$13.50 ▼(-9.09% Downside)

Sigma Lithium's overall stock score reflects significant financial challenges, despite positive technical momentum and strategic corporate developments. The earnings call provided a boost with strong revenue growth and strategic initiatives, but valuation metrics remain unattractive due to ongoing losses.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for Sigma's products, enhancing its market position and supporting long-term business expansion.

Financial Discipline

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

Operational Excellence

Strong safety record reflects operational efficiency and risk management, crucial for maintaining productivity and reducing potential liabilities.

Negative Factors

High Leverage

High leverage poses financial risk, potentially limiting the company's ability to invest in growth and manage economic downturns effectively.

Cash Flow Challenges

Negative cash flow growth highlights liquidity issues, which can constrain operational capabilities and strategic investments.

Lack of Green Premium

Inability to monetize sustainability efforts limits potential revenue streams and competitive differentiation in the growing green market.

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 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 is facing significant financial challenges. The income statement shows revenue growth but persistent losses. The balance sheet is burdened with high leverage, and cash flow metrics indicate liquidity constraints. The company needs to improve operational efficiency and manage its debt to stabilize its financial position.

Income Statement

Sigma Lithium's income statement reveals a challenging financial position. The TTM (Trailing-Twelve-Months) shows a gross profit margin of 10.76%, indicating some ability to cover production costs, but the net profit margin is deeply negative at -37.52%, reflecting significant losses. Revenue growth is positive at 17.1%, suggesting potential for future improvement. However, negative EBIT and EBITDA margins highlight ongoing operational inefficiencies.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.87, indicating significant leverage and potential financial risk. The return on equity is negative at -46.90%, pointing to unprofitable use of equity capital. The equity ratio stands at 24.44%, suggesting moderate reliance on equity financing. Overall, the balance sheet reflects financial instability and high leverage.

Cash Flow

Cash flow analysis indicates a negative free cash flow growth rate of -414.48% in the TTM, highlighting cash flow challenges. The operating cash flow to net income ratio is low at 0.13, and the free cash flow to net income ratio is 0.50, both suggesting insufficient cash generation relative to net income. These metrics underscore liquidity issues and cash management concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	160.32M	208.75M	181.23M	0.00	0.00	0.00
Gross Profit	27.15M	42.68M	88.90M	-102.00K	-57.61K	-59.15K
EBITDA	-9.29M	-32.27M	-4.91M	-126.68M	-31.99M	-1.57M
Net Income	-37.38M	-69.98M	-38.25M	-132.10M	-34.21M	-1.99M
Balance Sheet
Total Assets	342.82M	470.56M	487.24M	308.91M	193.78M	33.20M
Cash, Cash Equivalents and Short-Term Investments	6.11M	66.05M	64.40M	96.35M	154.31M	13.54M
Total Debt	166.41M	254.31M	176.63M	3.67M	514.52K	5.14M
Total Liabilities	259.05M	337.73M	272.95M	125.80M	8.72M	11.44M
Stockholders Equity	83.77M	132.83M	214.28M	183.11M	185.06M	21.76M
Cash Flow
Free Cash Flow	-32.93M	-47.42M	-76.57M	-133.09M	-22.86M	-3.77M
Operating Cash Flow	-25.51M	-24.35M	-30.79M	-5.44M	-4.26M	-2.42M
Investing Cash Flow	-16.65M	-32.56M	-82.22M	-132.53M	-18.60M	-2.38M
Financing Cash Flow	-27.43M	72.12M	77.83M	79.79M	165.15M	17.62M

Sigma Lithium Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 14.85 is above the 20-day moving average (MA) of 14.70, above the 50-day MA of 11.18, and above the 200-day MA of 10.11, indicating a bullish trend. The MACD of 1.09 indicates Positive momentum. The RSI at 57.14 is Neutral, neither overbought nor oversold. The STOCH value of 34.22 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	57 Neutral	C$1.57B	-35.21	-35.25%	―	-11.65%	34.89%
SLI	50 Neutral	C$1.53B	9.06	―	―	―	―
LAC	49 Neutral	$1.85B	-4.45	-42.69%	―	―	-465.27%
FL	42 Neutral	C$154.48M	-11.58	-144.30%	―	―	34.36%
LITH	41 Neutral	C$122.77M	-239.13	-0.96%	―	―	-107.23%
LTH	30 Underperform	C$160.33M	-45.86	-53.32%	―	―	93.58%

Sigma Lithium Corporate Events

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.

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.

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.

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.