Largo Inc. (LGO) AI Stock Analysis

Largo Inc. specializes in the development and commercialization of vanadium-based utility-scale electrical energy storage systems across Canada. It operates five segments: Sales & Trading, Mine Properties, Corporate, Exploration and Evaluation Properties, and Largo Clean Energy. The company sources vanadium from its Maracas Menchen Mine in Brazil to produce VPURE+ vanadium flakes for master alloys and aerospace applications, VPURE flakes for ferrovanadium, and vanadium carbon nitride for the steel sector. It also produces VPURE+ powder for catalyst applications and develops renewable storage through its Largo Clean Energy division.

Largo experienced consecutive annual revenue declines after peaking at $229.3M in FY2022. Revenue fell 13.3% to $198.7M in FY2023, 37.1% to $124.9M in FY2024, and 12.0% to $109.9M in FY2025. Operating margins compressed steadily from 18.5% in FY2021 to -41.9% in FY2025, resulting in an FY2025 net loss of -$68.5M and EPS of -$0.86. Over the 5-year period ending FY2025, revenue posted a CAGR of -1.7%. For the trailing twelve months, revenue was $127.1M with an operating margin of -9.7%. However, the latest quarter ending June 30, 2026, delivered quarterly revenue growth of 68.5% and earnings growth of 115.3%.

As of June 30, 2026, Largo held $5.5M in cash and short-term investments against total debt of $114.1M, yielding net debt of $108.6M. The company's current ratio stood at 0.54 and debt-to-equity was 0.86 alongside shareholders' equity of $132.3M. In FY2025, operating cash flow was -$10.2M and capital expenditures were $27.4M, resulting in free cash flow of -$37.7M. Over the past five years, the company's share count increased 59.3%.

At $0.45 per share, Largo has a market capitalization of $51.1M and an enterprise value of $177.1M. The stock trades at a forward P/E of 7.8x, lower than the median of 13.4x for its US-listed Basic Materials peers. Its EV-to-EBITDA multiple is 35.5x, well above the peer median of 10.5x, while its price-to-sales multiple is 0.4x compared to the peer median of 1.8x. Over the past year, the stock dropped 65.9%, compared to a 16.8% gain for the S&P 500 (SPY), and is down 96.1% over five years.

Wall Street coverage includes 1 Strong Buy and 1 Buy rating. The mean price target is $2.20, representing an upside of 388.9% above the last close of $0.45. For the current fiscal year ending December 31, 2026, analysts project an EPS of -$0.37 on revenue of $217.9M. For the next fiscal year, 1 analyst projects revenue of $250.0M and an EPS of -$0.25. Largo has beaten EPS estimates in 1 of the last 4 quarters, and its next earnings date is November 11, 2026.

This page is an AI-written research summary of Largo Inc. (LGO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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