Some comparisons have been made between PLS and LTR with LTR holders claiming the cheapness of LTR stock vis-a-vis PLS.
Comparison based on price and market cap, without looking at profitability isn't right.
Fact is both PLS and LTR are still expensive short term.
Based on Bell Potter model, PLS currently trades at PE multiple of 44x 2025 projected earnings while LTR trades at 86x, so LTR is far more expensive.
But when compared against ALB's PE of 9.36x, both PLS and LTR are still very dear.
Both PLS and LTR strongly benefited from not being listed in the US market. Arcadium Lithium (ALTM) isn't so fortunate by virtue that it is listed on NYSE, its stock has been decimated by -85% the past year, while in contrast PLS and LTR have declined -30.4% and -61.25% respectively over the same period, in part explained by strong domestic following for the only two well followed and trusted lithium stock. LTR's stock price has declined by -61% only because it shot up on the $3 takeover offer- without that offer, its pre-offer price was at about just $1.35 in early 2023 when PLS was doing above $4.
It is therefore my opinion that these two remaining local lithium stalwarts have further declines going forwards to play catch up with international and domestic peers amidst adversity in the EV/Lithium space.
DYOR.
Column 1
Column 2
0
BELL POTTER
1
PLS
2025-@$1400
2
SPOD PRICE ASSUMPTION
$1,400
3
LITHIUM HYDROXIDE
$24,375
4
AUD REVENUE (MIL)
$1,096.00
5
OPERATING EXPENSES
$(678.00)
6
DEPN & AMORTISATION
$(145.00)
7
NET INTEREST EXP
$(42.00)
8
NPBT (MIL)
$322.00
9
NPAT (MIL)
$227
10
11
12
NO OF SHARES (MIL_
3,009
13
PRICE
$3.320
14
MARKET CAP (MIL)
$9,990
15
PE MULTIPLE
44.01
The price to earnings ratio is calculated by taking the latest closing price and dividing it by the most recent earnings per share (EPS) number. The PE ratio is a simple way to assess whether a stock is over or under valued and is the most widely used valuation measure. Albemarle PE ratio as of June 11, 2024 is 9.36.
