Sigma Lithium (SGML) AI Stock Analysis

• Market Cap: $943.67M
• Dividend Yield: N/A
• Average Volume (3M): 137.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.82
• Revenue Growth: -25.68%
• EPS Growth: -637.02%
• Country: CA
• Employees: 589
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.24
• Shares Outstanding: 111,281,980
• 10 Day Avg. Volume: 171,473
• 30 Day Avg. Volume: 137,350
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 5.59
• Enterprise Value/Gross Profit: 51.95
• Enterprise Value/Ebitda: -32.28
• 1Y Price Target: $17.90
• Price Target Upside: 111.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 51 Neutral
• Price Target: C$8.00 ▼(-5.66% Downside)

Sigma Lithium's overall stock score reflects its financial challenges, with declining revenues and high leverage being significant concerns. However, the company's strong production performance, cost reductions, and strategic financial management highlighted in the earnings call provide some optimism. Technical indicators suggest limited momentum, and valuation metrics are unattractive due to negative earnings.

Positive Factors

Operational Efficiency

Sigma Lithium's focus on cost reduction enhances its competitive position by improving margins and allowing for more aggressive pricing strategies in the lithium market.

Production Performance

Meeting production targets ensures Sigma can capitalize on the growing demand for lithium, supporting revenue stability and market presence in the EV sector.

Deleveraging Strategy

Reducing debt levels enhances financial flexibility and reduces interest burden, positioning Sigma for sustainable growth and investment in expansion projects.

Negative Factors

Revenue Decline

A significant revenue decline indicates challenges in market demand or pricing, which could impact long-term growth and profitability unless reversed.

High Leverage

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

Inventory Management Challenges

Inventory build-up due to market volatility can strain cash flow and delay revenue recognition, impacting financial performance and operational efficiency.

Sigma Lithium Business Overview & Revenue Model

Company Description

Sigma Lithium (SGML) is a leading lithium development company based in Canada, focused on the exploration and production of high-quality lithium concentrate. The company operates primarily in the mining sector, with its flagship project located in Brazil, where it aims to meet the growing demand for lithium used in electric vehicle batteries and renewable energy storage. Sigma Lithium is committed to sustainable mining practices and aims to provide a crucial resource for the transition to clean energy.

How the Company Makes Money

Sigma Lithium generates revenue primarily through the sale of lithium concentrate, which is essential for the production of lithium-ion batteries. The company has established strategic partnerships with battery manufacturers and electric vehicle producers, ensuring a steady demand for its products. Additionally, Sigma Lithium benefits from favorable market conditions driven by the increasing adoption of electric vehicles and the global push for sustainable energy solutions. The company's revenue model is further supported by its focus on operational efficiency and cost management, which enhances its profit margins.

Sigma Lithium Financial Statement Overview

Summary

Sigma Lithium's financial performance is challenged by declining revenues, high leverage, and negative profitability. Despite a positive gross profit margin and stable equity ratio, operational inefficiencies and poor cash flow management are significant concerns.

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: Negative
• Last Price: 8.48
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SGML, the sentiment is Negative. The current price of 8.48 is below the 20-day moving average (MA) of 9.37, below the 50-day MA of 8.82, and below the 200-day MA of 10.96, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of 14.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	51 Neutral	$943.67M	―	-42.91%	―	-25.68%	-637.02%
SLI	50 Neutral	C$1.22B	8.24	―	―	―	―
LAC	49 Neutral	$2.32B	―	-8.20%	―	―	―
FL	42 Neutral	C$142.01M	―	-136.16%	―	―	29.98%
LITH	41 Neutral	C$90.99M	53.01	3.32%	―	―	-69.60%
LTH	30 Underperform	C$129.27M	-9.21	―	―	―	78.04%

Sigma Lithium Corporate Events

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.

Sigma Lithium Achieves Production Targets Amid Strategic Sales Withholding

Sigma Lithium reported a 38% year-on-year increase in lithium oxide concentrate production for the second quarter of 2025, achieving 68,368 tonnes, slightly above their target. Despite a 62% decrease in sales revenue due to a strategic decision to withhold product amid price volatility, the company maintained low operating costs and advanced its plant expansion to double capacity, reinforcing its position in the lithium industry.

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 Streamlines Leadership and Announces Shareholder Meeting Results

Sigma Lithium has streamlined its leadership structure by consolidating key roles under experienced Vice Presidents, enhancing operational focus and coordination. This reorganization includes the appointment of Felipe Peres as the sole Chief Financial Officer and Anna Hartley as Head of Investor and Global Banking Relations. Additionally, the company announced the results of its annual shareholder meeting, with all management nominees elected and Grant Thornton LLP appointed as auditor. Sigma Lithium is on track to produce 270,000 tons of lithium in 2025, further solidifying its position as a major player in the lithium industry.

The most recent analyst rating on (TSE:SGML) stock is a Buy with a C$20.00 price target. To see the full list of analyst forecasts on Sigma Lithium stock, see the TSE:SGML Stock Forecast page.