MeritValue

Largo Inc.

LGOdata completeness 100%6 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

Largo Inc. earns about -8% on invested capital, and has bought back 100% of its shares over 5 years. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$198.3M1$229.3M2$198.7M3$124.9M4$109.9M4
Net income$22.6M5−$1.45M6−$30.3M7−$49.8M8−$68.5M8
Operating cash flow$39.8M9$3.46M10$21.2M11$11.2M12−$10.2M12
Capital expenditure$27.4M13$42.2M14$53.5M15$42.2M16$27.4M16
Free cash flow (derived)$12.4M9−$38.7M10−$32.3M11−$31.1M12−$37.7M12
Total debt$15M17$40M18$75M19$92.3M20$107.1M20
Cash & equivalents$83.8M21$54.5M22$42.7M23$22.1M23$9.72M23
Diluted shares64.73B64.00B64.1M64.1M83.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$15.58
your share of equity
Profit it earned you last year
−$8.19
Free cash flow it threw off
−$4.5
Debt you’d be carrying
$12.8

10 shares is a claim on $15.58 of net worth that earned you −$8.19 and generated −$4.5 of cash last year, against $12.8 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-8% avg · 5y
FY21 11%FY22 1%FY23 -10%FY24 -24%FY25 -18%

It earned an average -8% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−100% shares · 5y

Share count is down 100% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 614% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 40-F · period ending 2021-12-31 · accession 0001062993-23-006435 (Revenue)
  2. 40-F · period ending 2022-12-31 · accession 0001062993-24-006942 (Revenue)
  3. 40-F · period ending 2023-12-31 · accession 0001062993-25-006517 (Revenue)
  4. 40-F · period ending 2024-12-31 · accession 0001062993-26-001778 (Revenue)
  5. 40-F · period ending 2021-12-31 · accession 0001062993-23-006435 (ProfitLossAttributableToOwnersOfParent)
  6. 40-F · period ending 2022-12-31 · accession 0001062993-24-006942 (ProfitLossAttributableToOwnersOfParent)
  7. 40-F · period ending 2023-12-31 · accession 0001062993-25-006517 (ProfitLossAttributableToOwnersOfParent)
  8. 40-F · period ending 2024-12-31 · accession 0001062993-26-001778 (ProfitLossAttributableToOwnersOfParent)
  9. 40-F · period ending 2021-12-31 · accession 0001062993-23-006435 (CashFlowsFromUsedInOperatingActivities)
  10. 40-F · period ending 2022-12-31 · accession 0001062993-24-006942 (CashFlowsFromUsedInOperatingActivities)
  11. 40-F · period ending 2023-12-31 · accession 0001062993-25-006517 (CashFlowsFromUsedInOperatingActivities)
  12. 40-F · period ending 2024-12-31 · accession 0001062993-26-001778 (CashFlowsFromUsedInOperatingActivities)
  13. 40-F · period ending 2021-12-31 · accession 0001062993-23-006435 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
  14. 40-F · period ending 2022-12-31 · accession 0001062993-24-006942 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
  15. 40-F · period ending 2023-12-31 · accession 0001062993-25-006517 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
  16. 40-F · period ending 2024-12-31 · accession 0001062993-26-001778 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
  17. 40-F · period ending 2021-12-31 · accession 0001062993-23-006435 (Borrowings)
  18. 40-F · period ending 2022-12-31 · accession 0001062993-24-006942 (Borrowings)
  19. 40-F · period ending 2023-12-31 · accession 0001062993-25-006517 (Borrowings)
  20. 40-F · period ending 2024-12-31 · accession 0001062993-26-001778 (Borrowings)
  21. 40-F · period ending 2021-12-31 · accession 0001062993-24-006942 (CashAndCashEquivalents)
  22. 40-F · period ending 2022-12-31 · accession 0001062993-25-006517 (CashAndCashEquivalents)
  23. 40-F · period ending 2023-12-31 · accession 0001062993-26-001778 (CashAndCashEquivalents)