Sigma Lithium (SGML) AI Stock Analysis

• Market Cap: $851.31M
• Dividend Yield: N/A
• Average Volume (3M): 93.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.71
• Revenue Growth: -25.68%
• EPS Growth: -637.02%
• Country: CA
• Employees: 589
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Industrial Materials
• EPS (TTM): -0.24
• Shares Outstanding: 111,281,980
• 10 Day Avg. Volume: 121,604
• 30 Day Avg. Volume: 93,949
• 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: 1.05
• Enterprise Value/Revenue: 5.59
• Enterprise Value/Gross Profit: 51.95
• Enterprise Value/Ebitda: -32.28
• 1Y Price Target: $17.43
• Price Target Upside: 127.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 51 Neutral
• Price Target: C$8.00 ▲(4.58% Upside)

Sigma Lithium's overall stock score reflects significant financial challenges, including declining revenues and high leverage. While the earnings call provided some optimism with cost reductions and strategic management, the technical analysis and valuation highlight ongoing risks. The company's operational resilience and strategic positioning offer some potential for improvement, but current financial and market conditions pose substantial risks.

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 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: 7.65
• 50DMA: Negative
• 100DMA: Negative
• 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 7.65 is below the 20-day moving average (MA) of 8.49, below the 50-day MA of 8.21, and below the 200-day MA of 12.28, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 42.80 is Neutral, neither overbought nor oversold. The STOCH value of 14.99 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	$10.29B	7.21	-0.05%	2.89%	2.87%	-36.73%
SGML	51 Neutral	$851.31M	―	-42.91%	―	-25.68%	-637.02%
SLI	50 Neutral	C$810.05M	5.49	61.89%	―	―	―
FL	42 Neutral	C$111.09M	―	-136.16%	―	―	29.98%
LITH	41 Neutral	C$117.78M	68.67	3.32%	―	―	-69.60%
LTH	30 Underperform	C$119.23M	―	-1139.82%	―	―	78.04%
LAC	―	$713.35M	―	-8.20%	―	―	―

Sigma Lithium Corporate Events

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.