LUNDIN MINING CORP (LUN.CA) Stock Fundamental Analysis
TSX:LUN - Toronto Stock Exchange - CA5503721063 - Common Stock - Currency: CAD
LUN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 797 industry peers in the Metals & Mining industry. While LUN has a great profitability rating, there are some minor concerns on its financial health. LUN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
LUN had positive earnings in the past year.
In the past year LUN had a positive cash flow from operations.
Of the past 5 years LUN 4 years were profitable.
In the past 5 years LUN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LUN (-0.82%) is better than 82.81% of its industry peers.
LUN has a better Return On Equity (-1.76%) than 81.56% of its industry peers.
LUN's Return On Invested Capital of 4.55% is amongst the best of the industry. LUN outperforms 91.09% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LUN is significantly below the industry average of 12.25%.
The last Return On Invested Capital (4.55%) for LUN is above the 3 year average (3.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.82% | ||
| ROE | -1.76% | ||
| ROIC | 4.55% |
ROA(3y)1.83%
ROA(5y)3.62%
ROE(3y)3.02%
ROE(5y)6.17%
ROIC(3y)3.7%
ROIC(5y)4.6%
1.3 Margins
The Operating Margin of LUN (26.64%) is better than 93.73% of its industry peers.
In the last couple of years the Operating Margin of LUN has grown nicely.
With an excellent Gross Margin value of 30.14%, LUN belongs to the best of the industry, outperforming 91.09% of the companies in the same industry.
LUN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.64% | ||
| PM (TTM) | N/A | ||
| GM | 30.14% |
OM growth 3Y-14.85%
OM growth 5Y8.15%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-13.35%
GM growth 5Y2.84%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LUN is destroying value.
The number of shares outstanding for LUN remains at a similar level compared to 1 year ago.
Compared to 5 years ago, LUN has more shares outstanding
LUN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.62, we must say that LUN is in the distress zone and has some risk of bankruptcy.
LUN has a Altman-Z score (1.62) which is in line with its industry peers.
The Debt to FCF ratio of LUN is 2.93, which is a good value as it means it would take LUN, 2.93 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.93, LUN belongs to the top of the industry, outperforming 92.35% of the companies in the same industry.
LUN has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
LUN has a worse Debt to Equity ratio (0.33) than 70.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.93 | ||
| Altman-Z | 1.62 |
ROIC/WACC0.55
WACC8.33%
2.3 Liquidity
A Current Ratio of 1.88 indicates that LUN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.88, LUN perfoms like the industry average, outperforming 54.96% of the companies in the same industry.
LUN has a Quick Ratio of 1.53. This is a normal value and indicates that LUN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.53, LUN is in line with its industry, outperforming 52.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 95.17% over the past year.
Measured over the past years, LUN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.05% on average per year.
Looking at the last year, LUN shows a decrease in Revenue. The Revenue has decreased by -3.58% in the last year.
LUN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.58% yearly.
EPS 1Y (TTM)95.17%
EPS 3Y-25.88%
EPS 5Y11.05%
EPS Q2Q%183.33%
Revenue 1Y (TTM)-3.58%
Revenue growth 3Y0.93%
Revenue growth 5Y12.58%
Sales Q2Q%2.87%
3.2 Future
LUN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.65% yearly.
Based on estimates for the next years, LUN will show a decrease in Revenue. The Revenue will decrease by -1.80% on average per year.
EPS Next Y3.66%
EPS Next 2Y11.73%
EPS Next 3Y7.07%
EPS Next 5Y3.65%
Revenue Next Year-18.83%
Revenue Next 2Y-6.72%
Revenue Next 3Y-2.84%
Revenue Next 5Y-1.8%
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
Based on the Price/Earnings ratio of 17.99, the valuation of LUN can be described as rather expensive.
90.97% of the companies in the same industry are more expensive than LUN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LUN to the average of the S&P500 Index (27.30), we can say LUN is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.77 indicates a rather expensive valuation of LUN.
Based on the Price/Forward Earnings ratio, LUN is valued cheaper than 88.58% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LUN to the average of the S&P500 Index (21.76), we can say LUN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.99 | ||
| Fwd PE | 17.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LUN indicates a rather cheap valuation: LUN is cheaper than 94.10% of the companies listed in the same industry.
95.73% of the companies in the same industry are more expensive than LUN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.09 | ||
| EV/EBITDA | 7.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LUN does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of LUN may justify a higher PE ratio.
PEG (NY)4.92
PEG (5Y)1.63
EPS Next 2Y11.73%
EPS Next 3Y7.07%
5. Dividend
5.1 Amount
With a yearly dividend of 0.74%, LUN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 13.23, LUN pays a better dividend. On top of this LUN pays more dividend than 95.73% of the companies listed in the same industry.
With a Dividend Yield of 0.74, LUN pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
On average, the dividend of LUN grows each year by 23.66%, which is quite nice.
LUN has been paying a dividend for over 5 years, so it has already some track record.
LUN has decreased its dividend recently.
Dividend Growth(5Y)23.66%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
The earnings of LUN are negative and hence is the payout ratio. LUN will probably not be able to sustain this dividend level.
LUN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-217.57%
EPS Next 2Y11.73%
EPS Next 3Y7.07%
TSX:LUN (7/11/2025, 7:00:00 PM)
13.85
-0.4 (-2.81%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners48.75%
Inst Owner ChangeN/A
Ins Owners0.71%
Ins Owner ChangeN/A
Market Cap11.86B
Analysts76.43
Price Target15.85 (14.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend0.36
Dividend Growth(5Y)23.66%
DP-217.57%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.93%
Min EPS beat(2)-6.08%
Max EPS beat(2)27.94%
EPS beat(4)1
Avg EPS beat(4)-10.1%
Min EPS beat(4)-45.6%
Max EPS beat(4)27.94%
EPS beat(8)1
Avg EPS beat(8)-18.05%
EPS beat(12)3
Avg EPS beat(12)-16.92%
EPS beat(16)6
Avg EPS beat(16)-11.62%
Revenue beat(2)1
Avg Revenue beat(2)-7.33%
Min Revenue beat(2)-21.49%
Max Revenue beat(2)6.83%
Revenue beat(4)1
Avg Revenue beat(4)-6.62%
Min Revenue beat(4)-21.49%
Max Revenue beat(4)6.83%
Revenue beat(8)2
Avg Revenue beat(8)-4.97%
Revenue beat(12)3
Avg Revenue beat(12)-6.14%
Revenue beat(16)6
Avg Revenue beat(16)-3.99%
PT rev (1m)3.58%
PT rev (3m)-2.2%
EPS NQ rev (1m)0.94%
EPS NQ rev (3m)-21.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.31%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)-16.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.99 | ||
| Fwd PE | 17.77 | ||
| P/S | 2.51 | ||
| P/FCF | 12.09 | ||
| P/OCF | 6.07 | ||
| P/B | 1.64 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 7.21 |
EPS(TTM)0.77
EY5.56%
EPS(NY)0.78
Fwd EY5.63%
FCF(TTM)1.15
FCFY8.27%
OCF(TTM)2.28
OCFY16.48%
SpS5.51
BVpS8.43
TBVpS8.17
PEG (NY)4.92
PEG (5Y)1.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.82% | ||
| ROE | -1.76% | ||
| ROCE | 9.43% | ||
| ROIC | 4.55% | ||
| ROICexc | 4.71% | ||
| ROICexgc | 4.8% | ||
| OM | 26.64% | ||
| PM (TTM) | N/A | ||
| GM | 30.14% | ||
| FCFM | 20.78% |
ROA(3y)1.83%
ROA(5y)3.62%
ROE(3y)3.02%
ROE(5y)6.17%
ROIC(3y)3.7%
ROIC(5y)4.6%
ROICexc(3y)3.85%
ROICexc(5y)4.87%
ROICexgc(3y)3.97%
ROICexgc(5y)5.05%
ROCE(3y)7.68%
ROCE(5y)9.55%
ROICexcg growth 3Y-22.24%
ROICexcg growth 5Y13.91%
ROICexc growth 3Y-21.75%
ROICexc growth 5Y14.37%
OM growth 3Y-14.85%
OM growth 5Y8.15%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-13.35%
GM growth 5Y2.84%
F-Score5
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.93 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 126.74% | ||
| Cap/Sales | 20.62% | ||
| Interest Coverage | 7.35 | ||
| Cash Conversion | 96.5% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 1.62 |
F-Score5
WACC8.33%
ROIC/WACC0.55
Cap/Depr(3y)146.6%
Cap/Depr(5y)127.59%
Cap/Sales(3y)29.41%
Cap/Sales(5y)25.07%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)95.17%
EPS 3Y-25.88%
EPS 5Y11.05%
EPS Q2Q%183.33%
EPS Next Y3.66%
EPS Next 2Y11.73%
EPS Next 3Y7.07%
EPS Next 5Y3.65%
Revenue 1Y (TTM)-3.58%
Revenue growth 3Y0.93%
Revenue growth 5Y12.58%
Sales Q2Q%2.87%
Revenue Next Year-18.83%
Revenue Next 2Y-6.72%
Revenue Next 3Y-2.84%
Revenue Next 5Y-1.8%
EBIT growth 1Y82.46%
EBIT growth 3Y-14.05%
EBIT growth 5Y21.76%
EBIT Next Year54.28%
EBIT Next 3Y20.66%
EBIT Next 5Y15.5%
FCF growth 1Y515.36%
FCF growth 3Y-9.28%
FCF growth 5YN/A
OCF growth 1Y85.13%
OCF growth 3Y0.76%
OCF growth 5Y21.89%