(LGO) Largo Resources - Ratings and Ratios

Largo Inc. specializes in the development and sale of vanadium-based energy storage solutions, operating primarily in Canada. The companys business is structured across multiple segments, including Sales & Trading, Mine Properties, Corporate, Exploration and Evaluation Properties, Largo Clean Energy, and Largo Physical Vanadium. Its product portfolio includes VPURE+ vanadium flakes, used in master alloys and aerospace applications, VPURE vanadium flakes, ferrovanadium, and vanadium carbon nitride for the steel industry, as well as VPURE+ vanadium powder for catalyst applications. Through Largo Clean Energy, the company provides renewable energy storage solutions, leveraging vanadium deposits from the Maracás Menchen Mine in Brazil. Formerly known as Largo Resources Ltd., the company rebranded as Largo Inc. in November 2021. Incorporated in 1988, it is headquartered in Toronto, Canada, and is listed on the NASDAQ under the ticker symbol LGO as a common stock in the Diversified Metals & Mining sector.

The companys stock has shown recent trading activity with an average 20-day volume of 213,630 shares. The last price recorded was $1.64, with key moving averages indicating a short-term SMA of $1.85, mid-term SMA of $1.79, and long-term SMA of $1.92. The Average True Range (ATR) stands at $0.12, reflecting moderate volatility. From a fundamental perspective, Largo Inc. has a market capitalization of $112.97 million, with a forward P/E ratio of 172.41, indicating expectations of future earnings growth. The price-to-book (P/B) ratio is 0.58, and the price-to-sales (P/S) ratio is 0.78, suggesting a potential undervaluation relative to its assets and sales. However, the return on equity (RoE) is -25.76%, indicating current profitability challenges.

3-Month Forecast: Based on technical and fundamental analysis, Largo Inc.s stock is expected to experience a mixed outlook. Technically, the stock is currently below its SMA 20 and SMA 50, which are below the SMA 200, suggesting a potential downtrend. The low ATR indicates reduced volatility, which may lead to a sideways movement. Fundamentally, while the forward P/E ratio suggests market expectations for future profitability, the negative RoE and low P/B ratio highlight ongoing financial challenges. Overall, the stock is likely to remain under pressure in the near term, with potential stabilization as the company works to improve its financial performance and leverage its position in the vanadium and energy storage markets.