LUNDIN GOLD INC (LUG.CA) Stock Fundamental Analysis
Canada - TSX:LUG - CA5503711080 - Common Stock
87.21 CAD
+2.95 (+3.5%)
We assign a fundamental rating of 7 out of 10 to LUG. LUG was compared to 807 industry peers in the Metals & Mining industry. LUG gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on LUG. These ratings would make LUG suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year LUG was profitable.
In the past year LUG had a positive cash flow from operations.
LUG had positive earnings in 4 of the past 5 years.
Each year in the past 5 years LUG had a positive operating cash flow.
1.2 Ratios
LUG has a Return On Assets of 37.99%. This is amongst the best in the industry. LUG outperforms 98.51% of its industry peers.
LUG's Return On Equity of 47.16% is amongst the best of the industry. LUG outperforms 98.39% of its industry peers.
LUG's Return On Invested Capital of 41.17% is amongst the best of the industry. LUG outperforms 99.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LUG is significantly above the industry average of 11.74%.
The 3 year average ROIC (22.93%) for LUG is below the current ROIC(41.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 37.99% | ||
| ROE | 47.16% | ||
| ROIC | 41.17% |
ROA(3y)14.84%
ROA(5y)10.91%
ROE(3y)20.81%
ROE(5y)16.32%
ROIC(3y)22.93%
ROIC(5y)18.45%
1.3 Margins
LUG has a Profit Margin of 41.73%. This is amongst the best in the industry. LUG outperforms 97.89% of its industry peers.
LUG's Profit Margin has improved in the last couple of years.
The Operating Margin of LUG (59.06%) is better than 99.26% of its industry peers.
In the last couple of years the Operating Margin of LUG has grown nicely.
LUG has a better Gross Margin (65.54%) than 97.65% of its industry peers.
LUG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 59.06% | ||
| PM (TTM) | 41.73% | ||
| GM | 65.54% |
OM growth 3Y5.36%
OM growth 5YN/A
PM growth 3Y5.75%
PM growth 5YN/A
GM growth 3Y6.72%
GM growth 5YN/A
2. Health
2.1 Basic Checks
LUG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
LUG has more shares outstanding than it did 1 year ago.
LUG has more shares outstanding than it did 5 years ago.
LUG 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
LUG has an Altman-Z score of 31.47. This indicates that LUG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 31.47, LUG belongs to the best of the industry, outperforming 80.42% of the companies in the same industry.
There is no outstanding debt for LUG. 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 | 31.47 |
ROIC/WACC4.24
WACC9.7%
2.3 Liquidity
A Current Ratio of 3.32 indicates that LUG has no problem at all paying its short term obligations.
LUG's Current ratio of 3.32 is fine compared to the rest of the industry. LUG outperforms 66.42% of its industry peers.
LUG has a Quick Ratio of 2.95. This indicates that LUG is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.95, LUG is in the better half of the industry, outperforming 64.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.95 |
3. Growth
3.1 Past
LUG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 160.20%, which is quite impressive.
LUG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.19% yearly.
Looking at the last year, LUG shows a very strong growth in Revenue. The Revenue has grown by 58.50%.
Measured over the past years, LUG shows a quite strong growth in Revenue. The Revenue has been growing by 17.61% on average per year.
EPS 1Y (TTM)160.2%
EPS 3Y18.19%
EPS 5YN/A
EPS Q2Q%97.56%
Revenue 1Y (TTM)58.5%
Revenue growth 3Y17.61%
Revenue growth 5YN/A
Sales Q2Q%50.24%
3.2 Future
The Earnings Per Share is expected to grow by 0.55% on average over the next years.
LUG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.41% yearly.
EPS Next Y63.64%
EPS Next 2Y31.2%
EPS Next 3Y16.42%
EPS Next 5Y0.55%
Revenue Next Year37.14%
Revenue Next 2Y19.76%
Revenue Next 3Y10.81%
Revenue Next 5Y4.41%
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
With a Price/Earnings ratio of 24.85, LUG is valued on the expensive side.
LUG's Price/Earnings ratio is rather cheap when compared to the industry. LUG is cheaper than 90.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of LUG to the average of the S&P500 Index (27.38), we can say LUG is valued inline with the index average.
With a Price/Forward Earnings ratio of 21.01, LUG is valued on the expensive side.
Based on the Price/Forward Earnings ratio, LUG is valued cheaply inside the industry as 88.85% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.86. LUG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.85 | ||
| Fwd PE | 21.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LUG indicates a rather cheap valuation: LUG is cheaper than 91.70% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LUG is valued cheaper than 95.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.89 | ||
| EV/EBITDA | 14.06 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of LUG may justify a higher PE ratio.
LUG's earnings are expected to grow with 16.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y31.2%
EPS Next 3Y16.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.83%, LUG has a reasonable but not impressive dividend return.
LUG's Dividend Yield is rather good when compared to the industry average which is at 13.98. LUG pays more dividend than 97.40% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.38, LUG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
5.2 History
LUG has been paying a dividend for less than 5 years, so it still needs to build a track record.
LUG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
61.14% of the earnings are spent on dividend by LUG. This is not a sustainable payout ratio.
DP61.14%
EPS Next 2Y31.2%
EPS Next 3Y16.42%
TSX:LUG (9/19/2025, 7:00:00 PM)
87.21
+2.95 (+3.5%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners26.96%
Inst Owner ChangeN/A
Ins Owners0.82%
Ins Owner ChangeN/A
Market Cap21.04B
Analysts52.63
Price Target69.02 (-20.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend0.83
Dividend Growth(5Y)N/A
DP61.14%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.17%
Min EPS beat(2)9.06%
Max EPS beat(2)17.27%
EPS beat(4)4
Avg EPS beat(4)12.02%
Min EPS beat(4)7.12%
Max EPS beat(4)17.27%
EPS beat(8)5
Avg EPS beat(8)5.18%
EPS beat(12)5
Avg EPS beat(12)-3.38%
EPS beat(16)8
Avg EPS beat(16)1.58%
Revenue beat(2)2
Avg Revenue beat(2)9.82%
Min Revenue beat(2)3.87%
Max Revenue beat(2)15.76%
Revenue beat(4)4
Avg Revenue beat(4)6.92%
Min Revenue beat(4)1.66%
Max Revenue beat(4)15.76%
Revenue beat(8)6
Avg Revenue beat(8)4.62%
Revenue beat(12)8
Avg Revenue beat(12)5.37%
Revenue beat(16)10
Avg Revenue beat(16)4.6%
PT rev (1m)6.28%
PT rev (3m)21.21%
EPS NQ rev (1m)5.82%
EPS NQ rev (3m)40.28%
EPS NY rev (1m)30.32%
EPS NY rev (3m)30.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)17.14%
Revenue NY rev (1m)3.75%
Revenue NY rev (3m)15.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.85 | ||
| Fwd PE | 21.01 | ||
| P/S | 10.36 | ||
| P/FCF | 19.89 | ||
| P/OCF | 17.69 | ||
| P/B | 11.71 | ||
| P/tB | 11.71 | ||
| EV/EBITDA | 14.06 |
EPS(TTM)3.51
EY4.02%
EPS(NY)4.15
Fwd EY4.76%
FCF(TTM)4.38
FCFY5.03%
OCF(TTM)4.93
OCFY5.65%
SpS8.42
BVpS7.45
TBVpS7.45
PEG (NY)0.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 37.99% | ||
| ROE | 47.16% | ||
| ROCE | 63.26% | ||
| ROIC | 41.17% | ||
| ROICexc | 64.17% | ||
| ROICexgc | 64.17% | ||
| OM | 59.06% | ||
| PM (TTM) | 41.73% | ||
| GM | 65.54% | ||
| FCFM | 52.07% |
ROA(3y)14.84%
ROA(5y)10.91%
ROE(3y)20.81%
ROE(5y)16.32%
ROIC(3y)22.93%
ROIC(5y)18.45%
ROICexc(3y)30.94%
ROICexc(5y)24.1%
ROICexgc(3y)30.94%
ROICexgc(5y)24.1%
ROCE(3y)35.24%
ROCE(5y)28.35%
ROICexcg growth 3Y30%
ROICexcg growth 5YN/A
ROICexc growth 3Y30%
ROICexc growth 5YN/A
OM growth 3Y5.36%
OM growth 5YN/A
PM growth 3Y5.75%
PM growth 5YN/A
GM growth 3Y6.72%
GM growth 5YN/A
F-Score8
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 72.16% | ||
| Cap/Sales | 6.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.06% | ||
| Profit Quality | 124.8% | ||
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.95 | ||
| Altman-Z | 31.47 |
F-Score8
WACC9.7%
ROIC/WACC4.24
Cap/Depr(3y)45.6%
Cap/Depr(5y)59.18%
Cap/Sales(3y)6.29%
Cap/Sales(5y)8.61%
Profit Quality(3y)302.21%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)160.2%
EPS 3Y18.19%
EPS 5YN/A
EPS Q2Q%97.56%
EPS Next Y63.64%
EPS Next 2Y31.2%
EPS Next 3Y16.42%
EPS Next 5Y0.55%
Revenue 1Y (TTM)58.5%
Revenue growth 3Y17.61%
Revenue growth 5YN/A
Sales Q2Q%50.24%
Revenue Next Year37.14%
Revenue Next 2Y19.76%
Revenue Next 3Y10.81%
Revenue Next 5Y4.41%
EBIT growth 1Y112.89%
EBIT growth 3Y23.92%
EBIT growth 5YN/A
EBIT Next Year47.99%
EBIT Next 3Y12.28%
EBIT Next 5Y1.45%
FCF growth 1Y55.07%
FCF growth 3Y17.41%
FCF growth 5YN/A
OCF growth 1Y58.44%
OCF growth 3Y16.84%
OCF growth 5YN/A