LUNDIN GOLD INC (LUG.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:LUG - CA5503711080 - Common Stock
120.92 CAD
+1.75 (+1.47%)
LUG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 820 industry peers in the Metals & Mining industry. LUG gets an excellent profitability rating and is at the same time showing great financial health properties. LUG is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make LUG suitable 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.
- 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
- Looking at the Return On Assets, with a value of 41.91%, LUG belongs to the top of the industry, outperforming 98.29% of the companies in the same industry.
- The Return On Equity of LUG (51.96%) is better than 98.41% of its industry peers.
- The Return On Invested Capital of LUG (45.27%) is better than 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 12.04%.
- The 3 year average ROIC (22.93%) for LUG is below the current ROIC(45.27%), indicating increased profibility in the last year.
| 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
- Looking at the Profit Margin, with a value of 42.98%, LUG belongs to the top of the industry, outperforming 97.92% 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 99.14% of its industry peers.
- In the last couple of years the Operating Margin of LUG has grown nicely.
- LUG has a Gross Margin of 66.84%. This is amongst the best in the industry. LUG outperforms 97.67% of its industry peers.
- LUG's Gross Margin has improved in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
- 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 43.73. This indicates that LUG is financially healthy and has little risk of bankruptcy at the moment.
- LUG has a better Altman-Z score (43.73) than 79.68% 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 | 43.73 |
ROIC/WACC4.46
WACC10.16%
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 63.89% of its industry peers.
- A Quick Ratio of 2.88 indicates that LUG has no problem at all paying its short term obligations.
- LUG has a Quick ratio of 2.88. This is in the better half of the industry: LUG outperforms 62.55% of its industry peers.
| 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.
- LUG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.19% yearly.
- LUG shows a strong growth in Revenue. In the last year, the Revenue has grown by 53.38%.
- LUG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.61% yearly.
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
- LUG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.31% yearly.
- The Revenue is expected to grow by 4.41% on average over the next years.
EPS Next Y83.73%
EPS Next 2Y46.03%
EPS Next 3Y28.29%
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
- A Price/Earnings ratio of 30.85 indicates a quite expensive valuation of LUG.
- Based on the Price/Earnings ratio, LUG is valued cheaply inside the industry as 91.06% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of LUG to the average of the S&P500 Index (27.21), we can say LUG is valued inline with the index average.
- LUG is valuated rather expensively with a Price/Forward Earnings ratio of 23.54.
- Based on the Price/Forward Earnings ratio, LUG is valued cheaply inside the industry as 89.96% of the companies are valued more expensively.
- LUG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.85 | ||
| Fwd PE | 23.54 |
4.2 Price Multiples
- 92.29% of the companies in the same industry are more expensive than LUG, based on the Enterprise Value to EBITDA ratio.
- 95.59% 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 | 27.25 | ||
| EV/EBITDA | 18.94 |
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 28.29% in the coming years.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y46.03%
EPS Next 3Y28.29%
5. Dividend
5.1 Amount
- LUG has a Yearly Dividend Yield of 1.40%. 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 0.56. LUG pays more dividend than 97.80% of the companies in the same industry.
- LUG's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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 2Y46.03%
EPS Next 3Y28.29%
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 for LUG stock?
ChartMill assigns a valuation rating of 7 / 10 to LUNDIN GOLD INC (LUG.CA). This can be considered as Undervalued.
What is the profitability of LUG stock?
LUNDIN GOLD INC (LUG.CA) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for LUG stock?
The Price/Earnings (PE) ratio for LUNDIN GOLD INC (LUG.CA) is 30.85 and the Price/Book (PB) ratio is 16.04.
What is the earnings growth outlook for LUNDIN GOLD INC?
The Earnings per Share (EPS) of LUNDIN GOLD INC (LUG.CA) is expected to grow by 83.73% in the next year.