LINAMAR CORP (LNR.CA) Stock Fundamental Analysis
TSX:LNR - Toronto Stock Exchange - CA53278L1076 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to LNR. LNR was compared to 4 industry peers in the Automobile Components industry. While LNR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. LNR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LNR was profitable.
In the past year LNR had a positive cash flow from operations.
In the past 5 years LNR has always been profitable.
Each year in the past 5 years LNR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LNR (5.37%) is better than 100.00% of its industry peers.
LNR has a better Return On Equity (10.33%) than 100.00% of its industry peers.
LNR has a Return On Invested Capital of 8.16%. This is amongst the best in the industry. LNR outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LNR is in line with the industry average of 7.73%.
The last Return On Invested Capital (8.16%) for LNR is above the 3 year average (7.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 10.33% | ||
| ROIC | 8.16% |
ROA(3y)5.26%
ROA(5y)5.03%
ROE(3y)9.15%
ROE(5y)8.91%
ROIC(3y)7.37%
ROIC(5y)7.16%
1.3 Margins
LNR has a Profit Margin of 5.58%. This is amongst the best in the industry. LNR outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of LNR has declined.
Looking at the Operating Margin, with a value of 8.81%, LNR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
LNR's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 14.24%, LNR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
LNR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.81% | ||
| PM (TTM) | 5.58% | ||
| GM | 14.24% |
OM growth 3Y2.89%
OM growth 5Y-4.85%
PM growth 3Y2.5%
PM growth 5Y-7.81%
GM growth 3Y0.08%
GM growth 5Y-3.49%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LNR is creating some value.
Compared to 1 year ago, LNR has about the same amount of shares outstanding.
Compared to 5 years ago, LNR has less shares outstanding
LNR has a worse debt/assets ratio than last year.
2.2 Solvency
LNR has an Altman-Z score of 2.53. This is not the best score and indicates that LNR is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.53, LNR is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
LNR has a debt to FCF ratio of 7.21. This is a slightly negative value and a sign of low solvency as LNR would need 7.21 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.21, LNR is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
LNR has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
LNR has a Debt to Equity ratio of 0.42. This is comparable to the rest of the industry: LNR outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 7.21 | ||
| Altman-Z | 2.53 |
ROIC/WACC1.03
WACC7.95%
2.3 Liquidity
LNR has a Current Ratio of 1.79. This is a normal value and indicates that LNR is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.79, LNR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
LNR has a Quick Ratio of 1.79. This is a bad value and indicates that LNR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.99, LNR is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.67% over the past year.
Measured over the past years, LNR shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.18% on average per year.
Looking at the last year, LNR shows a quite strong growth in Revenue. The Revenue has grown by 14.14% in the last year.
The Revenue has been growing slightly by 5.02% on average over the past years.
EPS 1Y (TTM)18.67%
EPS 3Y22.13%
EPS 5Y-0.18%
EPS Q2Q%6.33%
Revenue 1Y (TTM)14.14%
Revenue growth 3Y18.73%
Revenue growth 5Y5.02%
Sales Q2Q%8.28%
3.2 Future
LNR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.08% yearly.
Based on estimates for the next years, LNR will show a small growth in Revenue. The Revenue will grow by 3.85% on average per year.
EPS Next Y9.89%
EPS Next 2Y1.14%
EPS Next 3Y11.08%
EPS Next 5YN/A
Revenue Next Year9.59%
Revenue Next 2Y4.11%
Revenue Next 3Y3.85%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.34, the valuation of LNR can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of LNR indicates a somewhat cheap valuation: LNR is cheaper than 75.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LNR to the average of the S&P500 Index (29.35), we can say LNR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.93, the valuation of LNR can be described as very cheap.
LNR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of LNR to the average of the S&P500 Index (22.10), we can say LNR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.34 | ||
| Fwd PE | 5.93 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than LNR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LNR is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.44 | ||
| EV/EBITDA | 3.22 |
4.3 Compensation for Growth
LNR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LNR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y1.14%
EPS Next 3Y11.08%
5. Dividend
5.1 Amount
LNR has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
LNR's Dividend Yield is slightly below the industry average, which is at 3.95.
LNR's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
On average, the dividend of LNR grows each year by 12.87%, which is quite nice.
LNR has been paying a dividend for at least 10 years, so it has a reliable track record.
LNR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)12.87%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
LNR pays out 10.04% of its income as dividend. This is a sustainable payout ratio.
LNR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP10.04%
EPS Next 2Y1.14%
EPS Next 3Y11.08%
TSX:LNR (3/7/2025, 7:00:00 PM)
53.25
+1.6 (+3.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners20.39%
Inst Owner ChangeN/A
Ins Owners34.12%
Ins Owner ChangeN/A
Market Cap3.23B
Analysts76
Price Target74.66 (40.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend0.88
Dividend Growth(5Y)12.87%
DP10.04%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.69%
Min EPS beat(2)-0.57%
Max EPS beat(2)1.94%
EPS beat(4)3
Avg EPS beat(4)9.57%
Min EPS beat(4)-0.57%
Max EPS beat(4)24.48%
EPS beat(8)6
Avg EPS beat(8)8.15%
EPS beat(12)9
Avg EPS beat(12)8.2%
EPS beat(16)13
Avg EPS beat(16)16.5%
Revenue beat(2)0
Avg Revenue beat(2)-2.84%
Min Revenue beat(2)-4.21%
Max Revenue beat(2)-1.47%
Revenue beat(4)2
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-4.21%
Max Revenue beat(4)1.82%
Revenue beat(8)6
Avg Revenue beat(8)2.28%
Revenue beat(12)9
Avg Revenue beat(12)2.5%
Revenue beat(16)12
Avg Revenue beat(16)3.03%
PT rev (1m)-3.47%
PT rev (3m)-3.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.32%
EPS NY rev (1m)-1.86%
EPS NY rev (3m)-1.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.34 | ||
| Fwd PE | 5.93 | ||
| P/S | 0.3 | ||
| P/FCF | 9.44 | ||
| P/OCF | 3.13 | ||
| P/B | 0.56 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 3.22 |
EPS(TTM)9.98
EY18.74%
EPS(NY)8.98
Fwd EY16.87%
FCF(TTM)5.64
FCFY10.6%
OCF(TTM)17.02
OCFY31.96%
SpS175.65
BVpS94.91
TBVpS55.83
PEG (NY)0.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 10.33% | ||
| ROCE | 11.09% | ||
| ROIC | 8.16% | ||
| ROICexc | 9.04% | ||
| ROICexgc | 13.11% | ||
| OM | 8.81% | ||
| PM (TTM) | 5.58% | ||
| GM | 14.24% | ||
| FCFM | 3.21% |
ROA(3y)5.26%
ROA(5y)5.03%
ROE(3y)9.15%
ROE(5y)8.91%
ROIC(3y)7.37%
ROIC(5y)7.16%
ROICexc(3y)8.47%
ROICexc(5y)8.14%
ROICexgc(3y)12.6%
ROICexgc(5y)12.21%
ROCE(3y)10.02%
ROCE(5y)9.74%
ROICexcg growth 3Y2.08%
ROICexcg growth 5Y-1.84%
ROICexc growth 3Y7.08%
ROICexc growth 5Y-1.89%
OM growth 3Y2.89%
OM growth 5Y-4.85%
PM growth 3Y2.5%
PM growth 5Y-7.81%
GM growth 3Y0.08%
GM growth 5Y-3.49%
F-Score6
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 7.21 | ||
| Debt/EBITDA | 1.6 | ||
| Cap/Depr | 119.9% | ||
| Cap/Sales | 6.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.18% | ||
| Profit Quality | 57.56% | ||
| Current Ratio | 1.79 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 2.53 |
F-Score6
WACC7.95%
ROIC/WACC1.03
Cap/Depr(3y)104.5%
Cap/Depr(5y)103.3%
Cap/Sales(3y)5.79%
Cap/Sales(5y)5.98%
Profit Quality(3y)55.58%
Profit Quality(5y)143.5%
High Growth Momentum
Growth
EPS 1Y (TTM)18.67%
EPS 3Y22.13%
EPS 5Y-0.18%
EPS Q2Q%6.33%
EPS Next Y9.89%
EPS Next 2Y1.14%
EPS Next 3Y11.08%
EPS Next 5YN/A
Revenue 1Y (TTM)14.14%
Revenue growth 3Y18.73%
Revenue growth 5Y5.02%
Sales Q2Q%8.28%
Revenue Next Year9.59%
Revenue Next 2Y4.11%
Revenue Next 3Y3.85%
Revenue Next 5YN/A
EBIT growth 1Y25.08%
EBIT growth 3Y22.16%
EBIT growth 5Y-0.08%
EBIT Next Year96.76%
EBIT Next 3Y28.22%
EBIT Next 5YN/A
FCF growth 1Y179.75%
FCF growth 3Y-85.82%
FCF growth 5Y-53.74%
OCF growth 1Y122.24%
OCF growth 3Y-17.9%
OCF growth 5Y2.8%