LUNDIN GOLD INC (LUG.CA) Stock Fundamental Analysis
TSX:LUG - Toronto Stock Exchange - CA5503711080 - Common Stock
Overall LUG gets a fundamental rating of 8 out of 10. We evaluated LUG against 825 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making LUG a very profitable company, without any liquidiy or solvency issues. LUG is growing strongly while it also seems undervalued. This is an interesting combination These ratings would make LUG suitable 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.
LUG has a Return On Equity of 26.89%. This is amongst the best in the industry. LUG outperforms 96.62% of its industry peers.
LUG has a Return On Invested Capital of 21.43%. This is amongst the best in the industry. LUG outperforms 99.05% of its industry peers.
LUG had an Average Return On Invested Capital over the past 3 years of 14.24%. This is above the industry average of 11.88%.
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
LUG's Profit Margin of 29.56% is amongst the best of the industry. LUG outperforms 97.70% of its industry peers.
LUG's Operating Margin of 48.72% is amongst the best of the industry. LUG outperforms 98.92% of its industry peers.
LUG's Operating Margin has been stable in the last couple of years.
LUG has a better Gross Margin (54.34%) than 96.76% of its industry peers.
LUG's Gross Margin has been stable in the last couple of years.
| 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
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.
Compared to 1 year ago, LUG has an improved debt to assets ratio.
2.2 Solvency
LUG has an Altman-Z score of 18.21. This indicates that LUG is financially healthy and has little risk of bankruptcy at the moment.
LUG's Altman-Z score of 18.21 is amongst the best of the industry. LUG outperforms 80.54% 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 | 18.21 |
ROIC/WACC1.89
WACC11.33%
2.3 Liquidity
LUG has a Current Ratio of 3.82. This indicates that LUG is financially healthy and has no problem in meeting its short term obligations.
LUG has a better Current ratio (3.82) than 68.11% of its industry peers.
LUG has a Quick Ratio of 3.18. This indicates that LUG is financially healthy and has no problem in meeting its short term obligations.
LUG has a better Quick ratio (3.18) than 65.54% 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.
LUG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.19% yearly.
LUG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.91%.
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
Based on estimates for the next years, LUG will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.24% on average per year.
The Revenue is expected to grow by 12.44% on average over the next years. This is quite good.
EPS Next Y96.7%
EPS Next 2Y57.56%
EPS Next 3Y38.49%
EPS Next 5Y19.24%
Revenue Next Year35.46%
Revenue Next 2Y24.02%
Revenue Next 3Y17.02%
Revenue Next 5Y12.44%
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 stable.
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
A Price/Earnings ratio of 17.71 indicates a rather expensive valuation of LUG.
Based on the Price/Earnings ratio, LUG is valued cheaper than 90.00% of the companies in the same industry.
LUG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.96.
The Price/Forward Earnings ratio is 11.20, which indicates a very decent valuation of LUG.
Based on the Price/Forward Earnings ratio, LUG is valued cheaper than 90.54% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.11. LUG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.71 | ||
| Fwd PE | 11.2 |
4.2 Price Multiples
91.89% of the companies in the same industry are more expensive than LUG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LUG is valued cheaper than 95.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.65 | ||
| EV/EBITDA | 8.44 |
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 38.49% in the coming years.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y57.56%
EPS Next 3Y38.49%
5. Dividend
5.1 Amount
LUG has a Yearly Dividend Yield of 2.41%. 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 3.30. LUG pays more dividend than 97.43% of the companies in the same industry.
LUG's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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 2Y57.56%
EPS Next 3Y38.49%
LUNDIN GOLD INC
TSX:LUG (1/17/2025, 7:00:00 PM)
34.53
+0.48 (+1.41%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners27.7%
Inst Owner ChangeN/A
Ins Owners0.74%
Ins Owner ChangeN/A
Market Cap8.29B
Analysts71.76
Price Target36.29 (5.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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)1.65%
PT rev (3m)25.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)48.22%
EPS NY rev (1m)0%
EPS NY rev (3m)13.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)11.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.71 | ||
| Fwd PE | 11.2 | ||
| P/S | 5.51 | ||
| P/FCF | 11.65 | ||
| P/OCF | 10.17 | ||
| P/B | 5.02 | ||
| P/tB | 5.02 | ||
| EV/EBITDA | 8.44 |
EPS(TTM)1.95
EY5.65%
EPS(NY)3.08
Fwd EY8.92%
FCF(TTM)2.96
FCFY8.59%
OCF(TTM)3.39
OCFY9.83%
SpS6.26
BVpS6.88
TBVpS6.88
PEG (NY)0.18
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 | 18.21 |
F-Score8
WACC11.33%
ROIC/WACC1.89
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 Y96.7%
EPS Next 2Y57.56%
EPS Next 3Y38.49%
EPS Next 5Y19.24%
Revenue 1Y (TTM)12.91%
Revenue growth 3Y36.07%
Revenue growth 5YN/A
Sales Q2Q%53%
Revenue Next Year35.46%
Revenue Next 2Y24.02%
Revenue Next 3Y17.02%
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 5Y15.06%
FCF growth 1Y39.92%
FCF growth 3Y105.15%
FCF growth 5YN/A
OCF growth 1Y40.97%
OCF growth 3Y66.19%
OCF growth 5YN/A