LUNDIN GOLD INC (LUG.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:LUG - CA5503711080 - Common Stock
114.46 CAD
-4.32 (-3.64%)
We assign a fundamental rating of 7 out of 10 to LUG. LUG was compared to 804 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. LUG may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make LUG a good candidate for value 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.
Of the past 5 years LUG 4 years were profitable.
Each year in the past 5 years LUG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LUG (41.91%) is better than 97.89% of its industry peers.
LUG's Return On Equity of 51.96% is amongst the best of the industry. LUG outperforms 98.26% of its industry peers.
With an excellent Return On Invested Capital value of 45.27%, LUG belongs to the best of the industry, outperforming 99.75% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LUG is significantly above the industry average of 12.96%.
The last Return On Invested Capital (45.27%) for LUG is above the 3 year average (22.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 41.91% | ||
| ROE | 51.96% | ||
| ROIC | 45.27% |
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
With an excellent Profit Margin value of 42.98%, LUG belongs to the best of the industry, outperforming 97.89% of the companies in the same industry.
LUG's Profit Margin has improved in the last couple of years.
The Operating Margin of LUG (60.07%) is better than 99.13% of its industry peers.
LUG's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 66.84%, LUG belongs to the best of the industry, outperforming 97.64% of the companies in the same industry.
In the last couple of years the Gross Margin of LUG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 60.07% | ||
| PM (TTM) | 42.98% | ||
| GM | 66.84% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LUG is creating value.
Compared to 1 year ago, LUG has more shares outstanding
LUG has more shares outstanding than it did 5 years ago.
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.
2.2 Solvency
An Altman-Z score of 41.79 indicates that LUG is not in any danger for bankruptcy at the moment.
LUG has a better Altman-Z score (41.79) than 79.85% 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 | 41.79 |
ROIC/WACC4.57
WACC9.9%
2.3 Liquidity
LUG has a Current Ratio of 3.23. This indicates that LUG is financially healthy and has no problem in meeting its short term obligations.
LUG has a Current ratio of 3.23. This is in the better half of the industry: LUG outperforms 61.69% of its industry peers.
LUG has a Quick Ratio of 2.88. This indicates that LUG is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.88, LUG is doing good in the industry, outperforming 60.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.23 | ||
| Quick Ratio | 2.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 111.11% over the past year.
Measured over the past years, LUG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.19% on average per year.
The Revenue has grown by 53.38% in the past year. This is a very strong growth!
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)111.11%
EPS 3Y18.19%
EPS 5YN/A
EPS Q2Q%53.57%
Revenue 1Y (TTM)53.38%
Revenue growth 3Y17.61%
Revenue growth 5YN/A
Sales Q2Q%38.39%
3.2 Future
The Earnings Per Share is expected to grow by 3.31% on average over the next years.
Based on estimates for the next years, LUG will show a small growth in Revenue. The Revenue will grow by 4.41% on average per year.
EPS Next Y82.61%
EPS Next 2Y45.33%
EPS Next 3Y27.24%
EPS Next 5Y3.31%
Revenue Next Year45.74%
Revenue Next 2Y29.87%
Revenue Next 3Y18.58%
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 29.35, LUG can be considered very expensive at the moment.
LUG's Price/Earnings ratio is rather cheap when compared to the industry. LUG is cheaper than 89.68% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.84. LUG is around the same levels.
A Price/Forward Earnings ratio of 22.62 indicates a rather expensive valuation of LUG.
Based on the Price/Forward Earnings ratio, LUG is valued cheaply inside the industry as 88.93% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.40, LUG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.35 | ||
| Fwd PE | 22.62 |
4.2 Price Multiples
LUG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LUG is cheaper than 91.42% of the companies in the same industry.
94.65% of the companies in the same industry are more expensive than LUG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.94 | ||
| EV/EBITDA | 18.01 |
4.3 Compensation for Growth
LUG's 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 27.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y45.33%
EPS Next 3Y27.24%
5. Dividend
5.1 Amount
LUG has a Yearly Dividend Yield of 1.41%. 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 0.66. LUG pays more dividend than 97.76% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.00, LUG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
LUG has paid a dividend for less than 5 years, so there is no long track record yet.
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
75.50% of the earnings are spent on dividend by LUG. This is not a sustainable payout ratio.
DP75.5%
EPS Next 2Y45.33%
EPS Next 3Y27.24%
TSX:LUG (12/29/2025, 7:00:00 PM)
114.46
-4.32 (-3.64%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners27.22%
Inst Owner ChangeN/A
Ins Owners0.79%
Ins Owner ChangeN/A
Market Cap27.63B
Revenue(TTM)1.60B
Net Income(TTM)686.95M
Analysts52.63
Price Target101.35 (-11.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend0.82
Dividend Growth(5Y)N/A
DP75.5%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.89%
Min EPS beat(2)17.27%
Max EPS beat(2)20.52%
EPS beat(4)4
Avg EPS beat(4)13.49%
Min EPS beat(4)7.12%
Max EPS beat(4)20.52%
EPS beat(8)6
Avg EPS beat(8)8.29%
EPS beat(12)6
Avg EPS beat(12)3.62%
EPS beat(16)8
Avg EPS beat(16)0.63%
Revenue beat(2)2
Avg Revenue beat(2)11.48%
Min Revenue beat(2)7.19%
Max Revenue beat(2)15.76%
Revenue beat(4)4
Avg Revenue beat(4)7.12%
Min Revenue beat(4)1.66%
Max Revenue beat(4)15.76%
Revenue beat(8)7
Avg Revenue beat(8)5.82%
Revenue beat(12)9
Avg Revenue beat(12)6%
Revenue beat(16)10
Avg Revenue beat(16)4.31%
PT rev (1m)6.08%
PT rev (3m)46.84%
EPS NQ rev (1m)4.07%
EPS NQ rev (3m)21.27%
EPS NY rev (1m)5.43%
EPS NY rev (3m)11.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.21%
Revenue NY rev (1m)3.22%
Revenue NY rev (3m)6.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.35 | ||
| Fwd PE | 22.62 | ||
| P/S | 12.63 | ||
| P/FCF | 25.94 | ||
| P/OCF | 23.45 | ||
| P/B | 15.27 | ||
| P/tB | 15.27 | ||
| EV/EBITDA | 18.01 |
EPS(TTM)3.9
EY3.41%
EPS(NY)5.06
Fwd EY4.42%
FCF(TTM)4.41
FCFY3.86%
OCF(TTM)4.88
OCFY4.26%
SpS9.06
BVpS7.5
TBVpS7.5
PEG (NY)0.36
PEG (5Y)N/A
Graham Number25.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 41.91% | ||
| ROE | 51.96% | ||
| ROCE | 69.57% | ||
| ROIC | 45.27% | ||
| ROICexc | 70.54% | ||
| ROICexgc | 70.54% | ||
| OM | 60.07% | ||
| PM (TTM) | 42.98% | ||
| GM | 66.84% | ||
| FCFM | 48.7% |
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%
ROICexgc growth 3Y30%
ROICexgc 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-Score7
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 61.78% | ||
| Cap/Sales | 5.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.71% | ||
| Profit Quality | 113.29% | ||
| Current Ratio | 3.23 | ||
| Quick Ratio | 2.88 | ||
| Altman-Z | 41.79 |
F-Score7
WACC9.9%
ROIC/WACC4.57
Cap/Depr(3y)45.6%
Cap/Depr(5y)59.18%
Cap/Sales(3y)6.29%
Cap/Sales(5y)8.61%
Profit Quality(3y)301.9%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)111.11%
EPS 3Y18.19%
EPS 5YN/A
EPS Q2Q%53.57%
EPS Next Y82.61%
EPS Next 2Y45.33%
EPS Next 3Y27.24%
EPS Next 5Y3.31%
Revenue 1Y (TTM)53.38%
Revenue growth 3Y17.61%
Revenue growth 5YN/A
Sales Q2Q%38.39%
Revenue Next Year45.74%
Revenue Next 2Y29.87%
Revenue Next 3Y18.58%
Revenue Next 5Y4.41%
EBIT growth 1Y89%
EBIT growth 3Y23.92%
EBIT growth 5YN/A
EBIT Next Year59.17%
EBIT Next 3Y28.43%
EBIT Next 5Y5.08%
FCF growth 1Y52.54%
FCF growth 3Y17.15%
FCF growth 5YN/A
OCF growth 1Y53.62%
OCF growth 3Y16.61%
OCF growth 5YN/A
LUNDIN GOLD INC / LUG.CA FAQ
What is the ChartMill fundamental rating of LUNDIN GOLD INC (LUG.CA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to LUG.CA.
What is the valuation status of LUNDIN GOLD INC (LUG.CA) stock?
ChartMill assigns a valuation rating of 7 / 10 to LUNDIN GOLD INC (LUG.CA). This can be considered as Undervalued.
How profitable is LUNDIN GOLD INC (LUG.CA) stock?
LUNDIN GOLD INC (LUG.CA) has a profitability rating of 9 / 10.
How financially healthy is LUNDIN GOLD INC?
The financial health rating of LUNDIN GOLD INC (LUG.CA) is 9 / 10.
How sustainable is the dividend of LUNDIN GOLD INC (LUG.CA) stock?
The dividend rating of LUNDIN GOLD INC (LUG.CA) is 3 / 10 and the dividend payout ratio is 75.5%.