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LGOLargo Inc.
$0.64$48M
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  4. Financial Ratios

Largo Inc. (LGO) Financial Ratios

Latest Ratios: P/E Ratio -0.6x · EV/EBITDA N/A · ROE -44.5%. (2001–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

LGO Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$48M$64M$110M$148M$347M$602M$675M$412M$1.3B$501M$147M
Enterprise Value$38M$54M$106M$181M$334M$536M$621M$284M$1.3B$649M$352M
P/E Ratio →-0.63————27.2491.67—5.73——
P/S Ratio0.430.580.880.741.513.045.633.023.473.752.43
P/B Ratio0.320.470.640.581.262.272.731.514.618.477.37
P/FCF—————48.66—6.185.4416.07—
P/OCF——9.886.98100.2115.14—3.945.1410.75—

P/E links to full P/E history page with 30-year chart

LGO EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—0.490.850.911.462.705.172.083.304.875.83
EV / EBITDA———13.948.589.0523.399.334.3512.18—
EV / EBIT————58.8016.3068.79—4.7526.87—
EV / FCF—————43.31—4.265.1720.82—

LGO Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin-20.7%-20.7%-16.7%12.0%26.0%32.9%26.3%11.6%74.0%28.2%-39.3%
Operating Margin-41.9%-41.9%-37.0%-8.2%6.8%18.5%—-7.0%69.9%20.1%-55.8%
Net Profit Margin-62.3%-62.3%-39.9%-15.3%-0.6%11.4%5.6%-25.7%60.6%-6.2%-68.5%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE-44.5%-44.5%-23.4%-11.5%-0.5%8.8%2.6%-12.5%133.5%-20.9%-189.4%
ROA-21.5%-21.5%-13.9%-8.1%-0.4%7.4%2.0%-9.0%66.2%-3.0%-16.9%
ROIC-23.5%-23.5%-15.3%-4.4%5.1%14.0%—-3.9%93.3%9.3%-12.5%
ROCE-25.0%-25.0%-16.6%-4.9%5.3%14.0%—-3.2%108.6%13.7%-19.4%

LGO Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity——0.100.300.150.070.10—0.303.2410.30
Debt / EBITDA———5.871.080.300.93—0.303.60—
Net Debt / Equity—-0.07-0.030.13-0.05-0.25-0.22-0.47-0.232.5110.27
Net Debt / EBITDA———2.54-0.32-1.12-2.05-4.21-0.222.78—
Debt / FCF—————-5.35—-1.92-0.274.75—
Interest Coverage-2.93-2.93-6.53-2.643.4529.166.95-1.489.130.66-0.47

Net cash position: cash ($10M) exceeds total debt ($0)

LGO Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio0.510.510.823.233.963.843.102.001.890.730.34
Quick Ratio0.190.190.401.782.312.752.301.731.800.620.22
Cash Ratio0.060.060.191.021.402.011.781.631.360.450.01
Asset Turnover—0.340.390.500.640.630.400.370.940.450.23
Inventory Turnover2.682.683.072.852.642.932.505.669.458.7510.24
Days Sales Outstanding—36.7528.4546.7933.4043.6058.0916.5443.7924.3977.78

LGO Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield———————————
Payout Ratio———————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield—————3.7%1.1%—17.4%——
FCF Yield—————2.1%—16.2%18.4%6.2%—
Buyback Yield0.0%0.0%0.0%0.0%1.8%0.0%0.0%0.0%0.0%0.0%0.0%
Total Shareholder Yield0.0%0.0%0.0%0.0%1.8%0.0%0.0%0.0%0.0%0.0%0.0%
Shares Outstanding—$68M$64M$64M$64M$65M$61M$53M$64M$47M$39M

Key Metrics

Growth RegimeContracting
ProfitabilityNegative
Balance SheetVulnerable
Cash FlowBurning
Top Statement Risk

Liquidity and solvency crisis

Distressed Valuation Reflects Operational Uncertainty

According to recent market data, Largo trades at a price-to-sales multiple of 0.43, which, when viewed alongside a forward EV/EBITDA of 137.87, suggests that investors are pricing the company as a distressed asset rather than a growth-oriented participant in the clean energy transition sector.

The extremely high forward EV/EBITDA multiple indicates that the market anticipates significant difficulty in achieving positive earnings in the near term. This valuation gap relative to broader industrial materials peers suggests that the market is heavily discounting the potential of the Largo Clean Energy segment due to the persistent cash burn in the core mining business.

Negative Margins Undermine Earning Power

As reported in quarterly financial statements, Largo's gross margin of -26.1% in 2026Q1 highlights a fundamental inability to cover production costs, which appears to be a structural issue rather than a temporary fluctuation given the consistent trend of negative margins observed over the past ten quarters.

The persistent negative operating margins suggest that the company's high fixed-cost structure is not being adequately supported by current vanadium price levels or production throughput. Investors should monitor whether the company can achieve a positive purity premium for its products, as current margins indicate that the core mining operations are currently value-destructive.

Capital Decay Amidst Strategic Pivot

Based on reported figures, Largo's ROIC has remained consistently negative, reaching -4.6% in 2026Q1, which indicates that the company is failing to generate a return on its invested capital and is instead eroding shareholder value through its current operational and strategic capital allocation decisions.

The downward trend in ROIC suggests that the capital deployed into both the Maracás Menchen mine and the clean energy initiatives is not yielding the expected economic returns. This persistent decay in capital efficiency warrants further investigation into whether the company's current business model can ever achieve a cost of capital that is lower than its returns.

Working Capital Strains Operational Liquidity

According to recent filings, the cash conversion cycle has expanded to 131 days in 2026Q1, reflecting significant inefficiencies in inventory management and a growing reliance on supplier credit to manage the company's increasingly constrained liquidity position during this period of operational stress.

The elevated days inventory outstanding, which reached 141 days in the most recent quarter, suggests that the company is struggling to move its vanadium product through the supply chain effectively. This inefficiency ties up critical cash resources that are desperately needed to fund ongoing operations and reduce the company's reliance on external financing.

Misapplication of Revenue-Based Valuation Metrics

The most commonly misapplied metric for Largo is the price-to-sales ratio, which obscures the company's inability to convert top-line revenue into positive cash flow, thereby misleading investors who may view the company's revenue scale as a proxy for operational health or long-term viability.

Because Largo operates with deeply negative gross margins, revenue growth is actually detrimental to the company's cash position rather than beneficial. Analysts should instead focus on the cash break-even price per pound of vanadium produced, as this metric provides a more accurate assessment of the company's survival risk than traditional valuation multiples.

Download Financial Ratios Data

Includes 30+ ratios · 25 years · Updated daily

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LGO — Frequently Asked Questions

Quick answers to the most common questions about buying LGO stock.

What is Largo Inc.'s P/E ratio?

Largo Inc.'s current P/E ratio is -0.6x. The historical average is 41.5x.

What is Largo Inc.'s ROE?

Largo Inc.'s return on equity (ROE) is -44.5%. The historical average is -39.5%.

Is LGO stock overvalued?

Based on historical data, Largo Inc. is trading at a P/E of -0.6x. Compare with industry peers and growth rates for a complete picture.

What are Largo Inc.'s profit margins?

Largo Inc. has -20.7% gross margin and -41.9% operating margin.