LABRADOR IRON ORE ROYALTY CO (LIF.CA) Stock Fundamental Analysis
TSX:LIF - Toronto Stock Exchange - CA5054401073 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to LIF. LIF was compared to 818 industry peers in the Metals & Mining industry. LIF has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LIF has a bad growth rate and is valued cheaply. These ratings could make LIF a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year LIF was profitable.
In the past year LIF had a positive cash flow from operations.
LIF had positive earnings in each of the past 5 years.
LIF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LIF has a better Return On Assets (22.91%) than 97.70% of its industry peers.
LIF has a Return On Equity of 29.51%. This is amongst the best in the industry. LIF outperforms 97.03% of its industry peers.
LIF's Return On Invested Capital of 15.65% is amongst the best of the industry. LIF outperforms 97.03% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LIF is significantly above the industry average of 11.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.91% | ||
| ROE | 29.51% | ||
| ROIC | 15.65% |
ROA(3y)34.17%
ROA(5y)31.55%
ROE(3y)45.74%
ROE(5y)43.11%
ROIC(3y)19.42%
ROIC(5y)18.4%
1.3 Margins
The Profit Margin of LIF (94.00%) is better than 99.46% of its industry peers.
LIF's Profit Margin has been stable in the last couple of years.
LIF has a better Operating Margin (75.81%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of LIF has remained more or less at the same level.
LIF has a better Gross Margin (80.30%) than 98.92% of its industry peers.
LIF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 75.81% | ||
| PM (TTM) | 94% | ||
| GM | 80.3% |
OM growth 3Y0.06%
OM growth 5Y0.57%
PM growth 3Y-6.25%
PM growth 5Y-1.17%
GM growth 3Y0.02%
GM growth 5Y0%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LIF is creating value.
LIF has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for LIF remains at a similar level compared to 5 years ago.
LIF has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 7.69 indicates that LIF is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 7.69, LIF is doing good in the industry, outperforming 70.68% of the companies in the same industry.
There is no outstanding debt for LIF. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 7.69 |
ROIC/WACC1.67
WACC9.37%
2.3 Liquidity
LIF has a Current Ratio of 1.54. This is a normal value and indicates that LIF is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.54, LIF is in line with its industry, outperforming 45.68% of the companies in the same industry.
A Quick Ratio of 1.54 indicates that LIF should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.54, LIF perfoms like the industry average, outperforming 48.65% of the companies in the same industry.
The current and quick ratio evaluation for LIF is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
LIF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.55%, which is quite good.
The Earnings Per Share has been growing slightly by 7.60% on average over the past years.
Looking at the last year, LIF shows a small growth in Revenue. The Revenue has grown by 6.31% in the last year.
The Revenue has been growing by 8.99% on average over the past years. This is quite good.
EPS 1Y (TTM)8.55%
EPS 3Y-6.52%
EPS 5Y7.6%
EPS Q2Q%-31.17%
Revenue 1Y (TTM)6.31%
Revenue growth 3Y-0.17%
Revenue growth 5Y8.99%
Sales Q2Q%-11.21%
3.2 Future
Based on estimates for the next years, LIF will show a small growth in Earnings Per Share. The EPS will grow by 0.85% on average per year.
Based on estimates for the next years, LIF will show a decrease in Revenue. The Revenue will decrease by -0.07% on average per year.
EPS Next Y2.13%
EPS Next 2Y3.04%
EPS Next 3Y1.2%
EPS Next 5Y0.85%
Revenue Next Year10.2%
Revenue Next 2Y8.78%
Revenue Next 3Y7.22%
Revenue Next 5Y-0.07%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.13, which indicates a very decent valuation of LIF.
Based on the Price/Earnings ratio, LIF is valued cheaper than 93.24% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.62. LIF is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.01, which indicates a very decent valuation of LIF.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LIF indicates a rather cheap valuation: LIF is cheaper than 91.76% of the companies listed in the same industry.
LIF is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 10.01 |
4.2 Price Multiples
LIF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LIF is cheaper than 90.41% of the companies in the same industry.
LIF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LIF is cheaper than 95.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.87 | ||
| EV/EBITDA | 11.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of LIF may justify a higher PE ratio.
PEG (NY)4.75
PEG (5Y)1.33
EPS Next 2Y3.04%
EPS Next 3Y1.2%
5. Dividend
5.1 Amount
LIF has a Yearly Dividend Yield of 9.73%, which is a nice return.
LIF's Dividend Yield is rather good when compared to the industry average which is at 7.55. LIF pays more dividend than 99.59% of the companies in the same industry.
LIF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.73% |
5.2 History
The dividend of LIF is nicely growing with an annual growth rate of 10.49%!
LIF has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.49%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
LIF pays out 97.04% of its income as dividend. This is not a sustainable payout ratio.
The dividend of LIF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP97.04%
EPS Next 2Y3.04%
EPS Next 3Y1.2%
TSX:LIF (2/21/2025, 7:00:00 PM)
30.81
-0.03 (-0.1%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners20.59%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap1.97B
Analysts71.11
Price Target33.86 (9.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.73% |
Yearly Dividend2.8
Dividend Growth(5Y)10.49%
DP97.04%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.62%
Min EPS beat(2)-23.06%
Max EPS beat(2)-4.18%
EPS beat(4)1
Avg EPS beat(4)-7.44%
Min EPS beat(4)-23.06%
Max EPS beat(4)16.85%
EPS beat(8)1
Avg EPS beat(8)-11.74%
EPS beat(12)3
Avg EPS beat(12)-2.91%
EPS beat(16)4
Avg EPS beat(16)-2.41%
Revenue beat(2)2
Avg Revenue beat(2)1829.75%
Min Revenue beat(2)1576.87%
Max Revenue beat(2)2082.62%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.63%
PT rev (3m)1.63%
EPS NQ rev (1m)-5.72%
EPS NQ rev (3m)-5.72%
EPS NY rev (1m)-3.92%
EPS NY rev (3m)-6.77%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-4.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 10.01 | ||
| P/S | 9.53 | ||
| P/FCF | 10.87 | ||
| P/OCF | 10.87 | ||
| P/B | 2.99 | ||
| P/tB | 4.47 | ||
| EV/EBITDA | 11.84 |
EPS(TTM)3.04
EY9.87%
EPS(NY)3.08
Fwd EY9.99%
FCF(TTM)2.83
FCFY9.2%
OCF(TTM)2.83
OCFY9.2%
SpS3.23
BVpS10.3
TBVpS6.89
PEG (NY)4.75
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.91% | ||
| ROE | 29.51% | ||
| ROCE | 19.73% | ||
| ROIC | 15.65% | ||
| ROICexc | 16.48% | ||
| ROICexgc | 23.18% | ||
| OM | 75.81% | ||
| PM (TTM) | 94% | ||
| GM | 80.3% | ||
| FCFM | 87.66% |
ROA(3y)34.17%
ROA(5y)31.55%
ROE(3y)45.74%
ROE(5y)43.11%
ROIC(3y)19.42%
ROIC(5y)18.4%
ROICexc(3y)20.97%
ROICexc(5y)20.41%
ROICexgc(3y)31.96%
ROICexgc(5y)32.67%
ROCE(3y)24.48%
ROCE(5y)23.19%
ROICexcg growth 3Y-15.26%
ROICexcg growth 5Y1.32%
ROICexc growth 3Y-9.44%
ROICexc growth 5Y5%
OM growth 3Y0.06%
OM growth 5Y0.57%
PM growth 3Y-6.25%
PM growth 5Y-1.17%
GM growth 3Y0.02%
GM growth 5Y0%
F-Score7
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 111.26% | ||
| Profit Quality | 93.25% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 7.69 |
F-Score7
WACC9.37%
ROIC/WACC1.67
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)85.73%
Profit Quality(5y)88.76%
High Growth Momentum
Growth
EPS 1Y (TTM)8.55%
EPS 3Y-6.52%
EPS 5Y7.6%
EPS Q2Q%-31.17%
EPS Next Y2.13%
EPS Next 2Y3.04%
EPS Next 3Y1.2%
EPS Next 5Y0.85%
Revenue 1Y (TTM)6.31%
Revenue growth 3Y-0.17%
Revenue growth 5Y8.99%
Sales Q2Q%-11.21%
Revenue Next Year10.2%
Revenue Next 2Y8.78%
Revenue Next 3Y7.22%
Revenue Next 5Y-0.07%
EBIT growth 1Y6.56%
EBIT growth 3Y-0.11%
EBIT growth 5Y9.61%
EBIT Next Year69.6%
EBIT Next 3Y9.7%
EBIT Next 5Y10.14%
FCF growth 1Y-21.21%
FCF growth 3Y-4.56%
FCF growth 5Y0.49%
OCF growth 1Y-21.21%
OCF growth 3Y-4.56%
OCF growth 5Y0.49%