LINAMAR CORP (LNR.CA) Stock Fundamental Analysis
TSX:LNR - Toronto Stock Exchange - CA53278L1076 - Common Stock - Currency: CAD
Taking everything into account, LNR scores 6 out of 10 in our fundamental rating. LNR was compared to 4 industry peers in the Automobile Components industry. LNR has only an average score on both its financial health and profitability. LNR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
LNR had positive earnings in the past year.
LNR had a positive operating cash flow in the past year.
In the past 5 years LNR has always been profitable.
LNR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LNR has a Return On Assets (2.46%) which is in line with its industry peers.
LNR has a Return On Equity (4.76%) which is in line with its industry peers.
LNR has a better Return On Invested Capital (7.30%) than 75.00% of its industry peers.
LNR had an Average Return On Invested Capital over the past 3 years of 6.55%. This is in line with the industry average of 7.35%.
The last Return On Invested Capital (7.30%) for LNR is above the 3 year average (6.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.46% | ||
| ROE | 4.76% | ||
| ROIC | 7.3% |
ROA(3y)4.18%
ROA(5y)4.38%
ROE(3y)7.69%
ROE(5y)7.72%
ROIC(3y)6.55%
ROIC(5y)6.26%
1.3 Margins
Looking at the Profit Margin, with a value of 2.44%, LNR is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of LNR has declined.
LNR has a Operating Margin of 8.79%. This is amongst the best in the industry. LNR outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of LNR has remained more or less at the same level.
LNR has a better Gross Margin (14.21%) than 75.00% of its industry peers.
In the last couple of years the Gross Margin of LNR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.79% | ||
| PM (TTM) | 2.44% | ||
| GM | 14.21% |
OM growth 3Y-0.8%
OM growth 5Y0%
PM growth 3Y-27.61%
PM growth 5Y-15.91%
GM growth 3Y-0.31%
GM growth 5Y-0.22%
2. Health
2.1 Basic Checks
LNR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for LNR has been reduced compared to 1 year ago.
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 2.59. 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.
LNR has a better Altman-Z score (2.59) than 75.00% of its industry peers.
LNR has a debt to FCF ratio of 3.32. This is a good value and a sign of high solvency as LNR would need 3.32 years to pay back of all of its debts.
LNR has a Debt to FCF ratio of 3.32. This is in the better half of the industry: LNR outperforms 75.00% of its industry peers.
LNR has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of LNR (0.41) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.32 | ||
| Altman-Z | 2.59 |
ROIC/WACC1.02
WACC7.18%
2.3 Liquidity
A Current Ratio of 1.85 indicates that LNR should not have too much problems paying its short term obligations.
LNR's Current ratio of 1.85 is fine compared to the rest of the industry. LNR outperforms 75.00% of its industry peers.
LNR has a Quick Ratio of 1.02. This is a normal value and indicates that LNR is financially healthy and should not expect problems in meeting its short term obligations.
LNR has a better Quick ratio (1.02) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
LNR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.85%, which is quite good.
LNR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.61% yearly.
LNR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.72%.
LNR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.37% yearly.
EPS 1Y (TTM)11.85%
EPS 3Y14.51%
EPS 5Y6.61%
EPS Q2Q%-8.08%
Revenue 1Y (TTM)8.72%
Revenue growth 3Y17.42%
Revenue growth 5Y7.37%
Sales Q2Q%-3.19%
3.2 Future
LNR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.37% yearly.
The Revenue is expected to grow by 0.63% on average over the next years.
EPS Next Y-2.06%
EPS Next 2Y6.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.23%
Revenue Next 2Y0.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
A Price/Earnings ratio of 5.15 indicates a rather cheap valuation of LNR.
Based on the Price/Earnings ratio, LNR is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.88, LNR is valued rather cheaply.
The Price/Forward Earnings ratio is 5.26, which indicates a rather cheap valuation of LNR.
The rest of the industry has a similar Price/Forward Earnings ratio as LNR.
When comparing the Price/Forward Earnings ratio of LNR to the average of the S&P500 Index (21.20), we can say LNR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.15 | ||
| Fwd PE | 5.26 |
4.2 Price Multiples
LNR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LNR is cheaper than 75.00% of the companies in the same industry.
LNR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LNR is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.39 | ||
| EV/EBITDA | 2.77 |
4.3 Compensation for Growth
The decent profitability rating of LNR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y6.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.98%, LNR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.37, LNR is paying slightly less dividend.
LNR's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
The dividend of LNR is nicely growing with an annual growth rate of 15.99%!
LNR has paid a dividend for at least 10 years, which is a reliable track record.
LNR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)15.99%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
LNR pays out 23.83% of its income as dividend. This is a sustainable payout ratio.
The dividend of LNR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP23.83%
EPS Next 2Y6.37%
EPS Next 3YN/A
TSX:LNR (4/30/2025, 7:00:00 PM)
50.59
+0.3 (+0.6%)
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 Cap3.03B
Analysts74
Price Target67.93 (34.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
Yearly Dividend1
Dividend Growth(5Y)15.99%
DP23.83%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.96%
Min EPS beat(2)-0.57%
Max EPS beat(2)14.48%
EPS beat(4)3
Avg EPS beat(4)10.09%
Min EPS beat(4)-0.57%
Max EPS beat(4)24.48%
EPS beat(8)7
Avg EPS beat(8)10.39%
EPS beat(12)10
Avg EPS beat(12)9.67%
EPS beat(16)13
Avg EPS beat(16)15.3%
Revenue beat(2)0
Avg Revenue beat(2)-1.45%
Min Revenue beat(2)-1.47%
Max Revenue beat(2)-1.42%
Revenue beat(4)1
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-4.21%
Max Revenue beat(4)1.56%
Revenue beat(8)5
Avg Revenue beat(8)1.88%
Revenue beat(12)9
Avg Revenue beat(12)2.95%
Revenue beat(16)11
Avg Revenue beat(16)2.77%
PT rev (1m)-9.02%
PT rev (3m)-12.37%
EPS NQ rev (1m)0.92%
EPS NQ rev (3m)6.45%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.15%
Revenue NY rev (3m)-2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.15 | ||
| Fwd PE | 5.26 | ||
| P/S | 0.29 | ||
| P/FCF | 4.39 | ||
| P/OCF | 2.42 | ||
| P/B | 0.56 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 2.77 |
EPS(TTM)9.82
EY19.41%
EPS(NY)9.62
Fwd EY19.01%
FCF(TTM)11.52
FCFY22.78%
OCF(TTM)20.94
OCFY41.38%
SpS176.66
BVpS90.62
TBVpS57.77
PEG (NY)N/A
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.46% | ||
| ROE | 4.76% | ||
| ROCE | 11.61% | ||
| ROIC | 7.3% | ||
| ROICexc | 8.41% | ||
| ROICexgc | 11.72% | ||
| OM | 8.79% | ||
| PM (TTM) | 2.44% | ||
| GM | 14.21% | ||
| FCFM | 6.52% |
ROA(3y)4.18%
ROA(5y)4.38%
ROE(3y)7.69%
ROE(5y)7.72%
ROIC(3y)6.55%
ROIC(5y)6.26%
ROICexc(3y)7.42%
ROICexc(5y)7.24%
ROICexgc(3y)10.64%
ROICexgc(5y)10.8%
ROCE(3y)10.42%
ROCE(5y)9.96%
ROICexcg growth 3Y-1.07%
ROICexcg growth 5Y3.47%
ROICexc growth 3Y2.32%
ROICexc growth 5Y3.81%
OM growth 3Y-0.8%
OM growth 5Y0%
PM growth 3Y-27.61%
PM growth 5Y-15.91%
GM growth 3Y-0.31%
GM growth 5Y-0.22%
F-Score7
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.32 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 93.12% | ||
| Cap/Sales | 5.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.65% | ||
| Profit Quality | 267.3% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 2.59 |
F-Score7
WACC7.18%
ROIC/WACC1.02
Cap/Depr(3y)116.63%
Cap/Depr(5y)94.15%
Cap/Sales(3y)6.26%
Cap/Sales(5y)5.54%
Profit Quality(3y)92.83%
Profit Quality(5y)168.68%
High Growth Momentum
Growth
EPS 1Y (TTM)11.85%
EPS 3Y14.51%
EPS 5Y6.61%
EPS Q2Q%-8.08%
EPS Next Y-2.06%
EPS Next 2Y6.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.72%
Revenue growth 3Y17.42%
Revenue growth 5Y7.37%
Sales Q2Q%-3.19%
Revenue Next Year-2.23%
Revenue Next 2Y0.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y17.2%
EBIT growth 3Y16.48%
EBIT growth 5Y7.37%
EBIT Next Year62.38%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y21082.4%
FCF growth 3Y1.81%
FCF growth 5Y2.55%
OCF growth 1Y58.03%
OCF growth 3Y11.33%
OCF growth 5Y1.44%