According to the latest Securities & Exchange Commission filing, Bank of Montreal has reduced its stock position in Li-Cycle Holdings Corp. (LICY:NYE) by 34.6% during the 4th quarter. The company sold 49,295 shares, leaving it with 93,053 shares of Li-Cycle’s stock. As per the most recent filing, Bank of Montreal Can’s stake in Li-Cycle is now worth $444,000, accounting for 0.05% of the company’s total value.
LICY Stock Price Forecast:
Based on the LiCycle Holdings Corp stock forecast from 5 analysts, the average analyst LICY stock price target is USD 7.64 over the next 12 months. LiCycle Holdings Corp’s average analyst rating is Buy.
Stock Target Advisor’s own stock analysis of LiCycle Holdings Corp is Bearish, which is based on 2 positive signals and 7 negative signals. At the last closing, LICY stock price was USD 4.39. LICY stock price has changed by -5.79% over the past week, -22.02% over the past month, and -33.59% over the last year.
What to Like?
Low Debt:
The company is less leveraged than its peers, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.
Underpriced Compared to Book Value:
LICY stock is trading low compared to its peers on a price-to-book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.
What not to like?
Below Median Dividend Returns
The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.
Poor Risk-Adjusted Returns:
This company is delivering below median risk-adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.
Low Market Capitalization:
This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in the future.
Negative Cashflow:
The company had negative total cash flow in the most recent four quarters.
Negative Free Cash Flow:
The company had negative total free cash flow in the most recent four quarters.
Low Revenue Growth:
LICY stock has shown below-median revenue growth in the previous 5 years compared to its sector.
Low Earnings Growth:
LICY stock has shown below median earnings growth in the previous 5 years compared to its sector.
Company Profile:
Li-Cycle Holdings Corp. engages in the lithium-ion battery resource recovery and lithium-ion battery recycling business in North America. The company offers a mix of cathode and anode battery materials, including lithium, nickel, and cobalt, as well as graphite, copper, and aluminum; and copper and aluminum metals.
It also provides hub products, such as lithium carbonate, cobalt sulphate, nickel sulphate, and manganese carbonate. The company is headquartered in Toronto, Canada.
