TMC the metals (TMC) CEO Addressed The Selloff, Is The Stock 73% Undervalued?
TMC the metals (NasdaqGS:TMC) has moved back into focus after CEO Gerard Barron addressed the recent share price slide, tying it to sentiment and ongoing U.S. funding, certification, and litigation delays.
Recent trading tells a mixed story for TMC the metals. The share price has slipped sharply with a 7 day share price return of down 22.16% and a 30 day share price return of down 28.80%, feeding into a year to date share price decline of 60.62%. This comes even though the 3 year total shareholder return is up more than triple, while the 1 year total shareholder return is down 69.27%.
Spot fresh opportunities in the same materials story by scanning our hand-picked 32 best rare earth metal stocks that could be attracting interest while sentiment around TMC the metals is under pressure.TMC the metals has experienced a sharp reset in its share price, while its long term project ambitions and analyst price target remain far higher. Is most of the potential upside still ahead, or has it already been realized earlier?
Most Popular Narrative: 73% Undervalued
TMC the metals last closed at $2.67, while the most followed narrative pegs a fair value at $10.00 using an 8.3% discount rate and a set of detailed long term project assumptions.
The long term thesis relies on large project NPVs and very high projected lifetime revenue and EBITDA from polymetallic nodules. Actual value capture depends on future metal prices, competitive supply from other jurisdictions and the ability to stay in the first quartile of the cost curve, so adverse market conditions or higher than expected costs could limit revenue growth and reduce earnings.
See why 9 investors see TMC the metals as 73% undervalued.
Result: Fair Value of $10.00 (UNDERVALUED)
Still, the NOAA permit timeline and any shift in U.S. policy on deep sea mining, along with ongoing net losses, could quickly weaken the bullish TMC the metals narrative.
Find out about the key risks to this TMC the metals narrative.
Next Steps
Mixed sentiment runs through this TMC the metals story, so check the full data set, weigh the risks, and form your own stance using the 3 key rewards and 5 important warning signs.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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