Li-S Energy Limited engages in the development and commercialization of lithium sulphur batteries in Australia. It serves electric vehicle and E-mobility, law enforcement and defense, aviation, drone technology, and consumer electronics and internet of things. The company was incorporated in 2019 and is headquartered in Brisbane, Australia.

Australia

Li-S Energy Limited

Industrials

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

LIS.AX reported revenue of AUD 0mn in the last 12 months, down 0% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 0% from FY23 to AUD 0.00.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 1ppts over six months and grown 3ppts faster in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

Li-S Energy Limited reported a return on equity (RoE) of -5.6% in the last 12 months, up from -11.1% in FY24. 

Another important profitability metric, return on assets (RoA), amounted to -5.3% in the last 12 months, an increase from -10.5% in FY24. 

In the last 12 months, the return on capital employed (RoCE) grew to -5.5%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -1.0 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

LIS.AX has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is unstable and becomes extremely unfavourable on the days with the lowest activity. However, under highly turbulent market conditions, the trading volume tends to improve significantly. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is very high. Among the negative credit factors, we point to weak positions in its industry, negligible return on capital, weak debt servicing capacity, and inadequate interest coverage.

In highly turbulent market conditions, LIS.AX is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, LIS.AX is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

Based on key historical and expected multiples, the stock is fairly valued relative to its peers. 

Li-S Energy Limited

A$ 0.1

2

Li-S Energy Limited

A$ 0.1

2

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

A$ 0.1

About

About

About

About