LUNDIN GOLD INC (LUG.CA) Stock Fundamental Analysis
TSX:LUG - Toronto Stock Exchange - CA5503711080 - Common Stock - Currency: CAD
LUG gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 820 industry peers in the Metals & Mining industry. LUG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. An interesting combination arises when we look at growth and value: LUG is growing strongly while it also seems undervalued. This makes LUG very considerable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
LUG had positive earnings in the past year.
In the past year LUG had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: LUG reported negative net income in multiple years.
Of the past 5 years LUG 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 22.58%, LUG belongs to the top of the industry, outperforming 97.57% of the companies in the same industry.
The Return On Equity of LUG (26.89%) is better than 96.35% of its industry peers.
LUG's Return On Invested Capital of 21.43% is amongst the best of the industry. LUG outperforms 99.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LUG is above the industry average of 11.94%.
The 3 year average ROIC (14.24%) for LUG is below the current ROIC(21.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.58% | ||
| ROE | 26.89% | ||
| ROIC | 21.43% |
ROA(3y)9.92%
ROA(5y)3.64%
ROE(3y)18.2%
ROE(5y)4.22%
ROIC(3y)14.24%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 29.56%, LUG belongs to the best of the industry, outperforming 97.70% of the companies in the same industry.
LUG's Operating Margin of 48.72% is amongst the best of the industry. LUG outperforms 98.92% of its industry peers.
In the last couple of years the Operating Margin of LUG has remained more or less at the same level.
LUG has a Gross Margin of 54.34%. This is amongst the best in the industry. LUG outperforms 96.62% of its industry peers.
In the last couple of years the Gross Margin of LUG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.72% | ||
| PM (TTM) | 29.56% | ||
| GM | 54.34% |
OM growth 3Y0.69%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.06%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LUG is creating value.
The number of shares outstanding for LUG has been increased compared to 1 year ago.
The number of shares outstanding for LUG has been increased compared to 5 years ago.
Compared to 1 year ago, LUG has an improved debt to assets ratio.
2.2 Solvency
LUG has an Altman-Z score of 20.88. This indicates that LUG is financially healthy and has little risk of bankruptcy at the moment.
LUG's Altman-Z score of 20.88 is amongst the best of the industry. LUG outperforms 81.49% of its industry peers.
LUG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 20.88 |
ROIC/WACC2.05
WACC10.45%
2.3 Liquidity
A Current Ratio of 3.82 indicates that LUG has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.82, LUG is doing good in the industry, outperforming 67.30% of the companies in the same industry.
A Quick Ratio of 3.18 indicates that LUG has no problem at all paying its short term obligations.
The Quick ratio of LUG (3.18) is better than 64.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.82 | ||
| Quick Ratio | 3.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 56.98% over the past year.
The Earnings Per Share has been growing by 23.19% on average over the past years. This is a very strong growth
The Revenue has grown by 12.91% in the past year. This is quite good.
Measured over the past years, LUG shows a very strong growth in Revenue. The Revenue has been growing by 36.07% on average per year.
EPS 1Y (TTM)56.98%
EPS 3Y23.19%
EPS 5YN/A
EPS Q2Q%194.74%
Revenue 1Y (TTM)12.91%
Revenue growth 3Y36.07%
Revenue growth 5YN/A
Sales Q2Q%53%
3.2 Future
The Earnings Per Share is expected to grow by 17.54% on average over the next years. This is quite good.
LUG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.44% yearly.
EPS Next Y105.18%
EPS Next 2Y54.12%
EPS Next 3Y36.82%
EPS Next 5Y17.54%
Revenue Next Year36.82%
Revenue Next 2Y24.48%
Revenue Next 3Y17.27%
Revenue Next 5Y12.44%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
LUG is valuated rather expensively with a Price/Earnings ratio of 20.66.
Based on the Price/Earnings ratio, LUG is valued cheaply inside the industry as 90.14% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LUG to the average of the S&P500 Index (29.63), we can say LUG is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.68, the valuation of LUG can be described as correct.
Based on the Price/Forward Earnings ratio, LUG is valued cheaper than 90.14% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. LUG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.66 | ||
| Fwd PE | 13.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LUG is valued cheaply inside the industry as 91.49% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, LUG is valued cheaply inside the industry as 95.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.62 | ||
| EV/EBITDA | 9.96 |
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.
LUG has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as LUG's earnings are expected to grow with 36.82% in the coming years.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y54.12%
EPS Next 3Y36.82%
5. Dividend
5.1 Amount
LUG has a Yearly Dividend Yield of 2.14%. Purely for dividend investing, there may be better candidates out there.
LUG's Dividend Yield is rather good when compared to the industry average which is at 7.55. LUG pays more dividend than 97.16% of the companies in the same industry.
LUG's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
5.2 History
LUG has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
LUG pays out 38.83% of its income as dividend. This is a sustainable payout ratio.
DP38.83%
EPS Next 2Y54.12%
EPS Next 3Y36.82%
TSX:LUG (2/21/2025, 7:00:00 PM)
39.67
+1.3 (+3.39%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners26.1%
Inst Owner ChangeN/A
Ins Owners0.74%
Ins Owner ChangeN/A
Market Cap9.54B
Analysts72.94
Price Target38.82 (-2.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend0.4
Dividend Growth(5Y)N/A
DP38.83%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.61%
Min EPS beat(2)-3.41%
Max EPS beat(2)14.63%
EPS beat(4)2
Avg EPS beat(4)3.09%
Min EPS beat(4)-5.49%
Max EPS beat(4)14.63%
EPS beat(8)2
Avg EPS beat(8)-1.31%
EPS beat(12)4
Avg EPS beat(12)-3.66%
EPS beat(16)7
Avg EPS beat(16)1.42%
Revenue beat(2)2
Avg Revenue beat(2)3.38%
Min Revenue beat(2)0.36%
Max Revenue beat(2)6.4%
Revenue beat(4)3
Avg Revenue beat(4)4.52%
Min Revenue beat(4)-5.59%
Max Revenue beat(4)16.93%
Revenue beat(8)5
Avg Revenue beat(8)5.44%
Revenue beat(12)6
Avg Revenue beat(12)3.37%
Revenue beat(16)9
Avg Revenue beat(16)3.42%
PT rev (1m)6.97%
PT rev (3m)10.31%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)0.29%
EPS NY rev (1m)4.31%
EPS NY rev (3m)9.52%
Revenue NQ rev (1m)-1.04%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)5.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.66 | ||
| Fwd PE | 13.68 | ||
| P/S | 6.45 | ||
| P/FCF | 13.62 | ||
| P/OCF | 11.89 | ||
| P/B | 5.86 | ||
| P/tB | 5.86 | ||
| EV/EBITDA | 9.96 |
EPS(TTM)1.92
EY4.84%
EPS(NY)2.9
Fwd EY7.31%
FCF(TTM)2.91
FCFY7.34%
OCF(TTM)3.34
OCFY8.41%
SpS6.15
BVpS6.76
TBVpS6.76
PEG (NY)0.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.58% | ||
| ROE | 26.89% | ||
| ROCE | 41.02% | ||
| ROIC | 21.43% | ||
| ROICexc | 26.21% | ||
| ROICexgc | 26.21% | ||
| OM | 48.72% | ||
| PM (TTM) | 29.56% | ||
| GM | 54.34% | ||
| FCFM | 47.35% |
ROA(3y)9.92%
ROA(5y)3.64%
ROE(3y)18.2%
ROE(5y)4.22%
ROIC(3y)14.24%
ROIC(5y)N/A
ROICexc(3y)18.63%
ROICexc(5y)N/A
ROICexgc(3y)18.63%
ROICexgc(5y)N/A
ROCE(3y)27.27%
ROCE(5y)N/A
ROICexcg growth 3Y44.7%
ROICexcg growth 5YN/A
ROICexc growth 3Y44.7%
ROICexc growth 5YN/A
OM growth 3Y0.69%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.06%
GM growth 5YN/A
F-Score8
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 53.19% | ||
| Cap/Sales | 6.87% | ||
| Interest Coverage | 1.81 | ||
| Cash Conversion | 87.97% | ||
| Profit Quality | 160.2% | ||
| Current Ratio | 3.82 | ||
| Quick Ratio | 3.18 | ||
| Altman-Z | 20.88 |
F-Score8
WACC10.45%
ROIC/WACC2.05
Cap/Depr(3y)43.21%
Cap/Depr(5y)80867.2%
Cap/Sales(3y)6.58%
Cap/Sales(5y)N/A
Profit Quality(3y)310.83%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)56.98%
EPS 3Y23.19%
EPS 5YN/A
EPS Q2Q%194.74%
EPS Next Y105.18%
EPS Next 2Y54.12%
EPS Next 3Y36.82%
EPS Next 5Y17.54%
Revenue 1Y (TTM)12.91%
Revenue growth 3Y36.07%
Revenue growth 5YN/A
Sales Q2Q%53%
Revenue Next Year36.82%
Revenue Next 2Y24.48%
Revenue Next 3Y17.27%
Revenue Next 5Y12.44%
EBIT growth 1Y24.51%
EBIT growth 3Y37.01%
EBIT growth 5YN/A
EBIT Next Year90.43%
EBIT Next 3Y29.27%
EBIT Next 5Y13.21%
FCF growth 1Y39.92%
FCF growth 3Y105.15%
FCF growth 5YN/A
OCF growth 1Y40.97%
OCF growth 3Y66.19%
OCF growth 5YN/A