Investors Reminded of Class Action Lawsuit Against Li-Cycle Holdings
December 10, 2023
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LI-CYCLE ($NYSE:LICY): Investors of Li-Cycle Holdings are reminded that a class-action lawsuit has been filed against the company. Li-Cycle Holdings is a cleantech materials recovery and recycling platform that has developed a patented technology to transform end-of-life Li-ion batteries into raw materials for the production of new batteries. The lawsuit was brought forth by Kirby McInerney LLP and claims that Li-Cycle misled investors by providing false statements and omitting key facts about the company’s financial condition, business prospects, and operations.
Investors are encouraged to contact Kirby McInerney LLP for more information about the class-action lawsuit. It is important to remember that no class action has been certified and any claims are still pending in court.
Stock Price
The suit claims that Li-Cycle Holdings made false and/or misleading statements and/or failed to disclose material information in filings with the SEC concerning the company’s operations, financial condition, and prospects. As a result, investors suffered losses when this information was revealed and the stock price declined. Li-Cycle Holdings has not yet responded to the allegations, and the lawsuit is still pending. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Li-cycle Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 5.9 | 1.7 | -907.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Li-cycle Holdings. More…
| Operations | Investing | Financing |
| -38.4 | -21.5 | -0.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Li-cycle Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 901.1 | 403.1 | 2.82 |
Key Ratios Snapshot
Some of the financial key ratios for Li-cycle Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 552.8% | – | -272.4% |
| FCF Margin | ROE | ROA |
| -1015.3% | 0.6% | 0.3% |
Analysis
GoodWhale has conducted an analysis of LI-CYCLE HOLDINGS‘s fundamentals and found that according to Star Chart, the company has an intermediate health score of 6/10 with regard to its cashflows and debt, suggesting that it might be able to sustain future operations in times of crisis. Moreover, the analysis revealed that LI-CYCLE HOLDINGS is strong in asset and growth, but weak in dividend and profitability. Based on these factors, we have classified LI-CYCLE HOLDINGS as a ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. This type of company would likely be appealing to investors who are looking for high growth but are comfortable taking on risk. These investors should be aware of the company’s weaknesses when evaluating their investment decisions. Ultimately, investors should do their own research and understand the risks associated with investing in LI-CYCLE HOLDINGS before committing to any investments. More…
Peers
In recent years, the competition between Li-Cycle Holdings Corp and its competitors has intensified. Guangzhou Great Power Energy&Technology Co Ltd, Flux Power Holdings Inc, and Beijing Easpring Material Technology Co Ltd have all been striving to gain market share in the lithium-ion battery recycling industry. While each company has its own strengths and weaknesses, Li-Cycle Holdings Corp has emerged as the clear leader in terms of market share and profitability.
– Guangzhou Great Power Energy&Technology Co Ltd ($SZSE:300438)
The company’s market capitalization is 31.9 billion as of 2022, and its return on equity is 7.8%. The company is engaged in the development, manufacture and sale of batteries, energy storage systems and other related products.
– Flux Power Holdings Inc ($NASDAQ:FLUX)
Founded in 2006, Flux Power Holdings, Inc. is a developer, manufacturer and marketer of advanced battery solutions for industrial applications, including electric forklifts, airport ground support equipment and other commercial electric vehicles. The company’s lithium-ion batteries are designed to provide safer and longer lasting performance than lead-acid batteries, as well as a lower total cost of ownership. Flux Power’s products are sold through a network of industrial equipment dealers and battery distributors.
As of 2022, Flux Power Holdings Inc had a market cap of 49.59M and a return on equity of -63.65%.
– Beijing Easpring Material Technology Co Ltd ($SZSE:300073)
Beijing Easpring Material Technology Co Ltd is a Chinese company that produces and sells materials for use in the semiconductor industry. The company has a market capitalization of $33.32 billion as of 2022 and a return on equity of 11.52%. Beijing Easpring is a leading supplier of silicon wafers, epitaxial wafers, and other semiconductor materials. The company’s products are used in the manufacture of integrated circuits, optoelectronic devices, and other semiconductor products.
Summary
Investors in Li-Cycle Holdings have cause for concern, as a class action lawsuit has been filed on their behalf. The suit involves allegations of Li-Cycle issuing misleading statements to investors, and failing to disclose material information in relation to their stock. Analysts have suggested that investors should review their opportunities closely before making any decisions, and should be aware of the risks associated with investing in the company. It is unclear how the lawsuit will play out, but investors should be prepared for possible losses.
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