LUNDIN MINING CORP (LUN.CA) Stock Fundamental Analysis
TSX:LUN - Toronto Stock Exchange - CA5503721063 - Common Stock - Currency: CAD
Taking everything into account, LUN scores 4 out of 10 in our fundamental rating. LUN was compared to 818 industry peers in the Metals & Mining industry. LUN has a medium profitability rating, but doesn't score so well on its financial health evaluation. LUN is valued quite cheap, but it does not seem to be growing.
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.
LUN had positive earnings in 4 of the past 5 years.
LUN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
LUN has a better Return On Assets (2.49%) than 88.38% of its industry peers.
LUN's Return On Equity of 5.48% is amongst the best of the industry. LUN outperforms 90.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.84%, LUN belongs to the top of the industry, outperforming 92.97% of the companies in the same industry.
LUN had an Average Return On Invested Capital over the past 3 years of 7.47%. This is below the industry average of 11.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 5.48% | ||
| ROIC | 5.84% |
ROA(3y)5.89%
ROA(5y)4.5%
ROE(3y)10.4%
ROE(5y)7.98%
ROIC(3y)7.47%
ROIC(5y)5.97%
1.3 Margins
LUN has a Profit Margin of 6.63%. This is amongst the best in the industry. LUN outperforms 92.16% of its industry peers.
LUN's Profit Margin has declined in the last couple of years.
LUN's Operating Margin of 19.99% is amongst the best of the industry. LUN outperforms 92.84% of its industry peers.
LUN's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 22.77%, LUN belongs to the best of the industry, outperforming 88.51% of the companies in the same industry.
LUN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.99% | ||
| PM (TTM) | 6.63% | ||
| GM | 22.77% |
OM growth 3Y-6.88%
OM growth 5Y-2.09%
PM growth 3Y-4.86%
PM growth 5Y-8.91%
GM growth 3Y-7.63%
GM growth 5Y-5.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LUN is destroying value.
LUN 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
LUN has an Altman-Z score of 1.48. This is a bad value and indicates that LUN is not financially healthy and even has some risk of bankruptcy.
LUN has a Altman-Z score (1.48) which is in line with its industry peers.
The Debt to FCF ratio of LUN is 9.29, which is on the high side as it means it would take LUN, 9.29 years of fcf income to pay off all of its debts.
LUN has a Debt to FCF ratio of 9.29. This is amongst the best in the industry. LUN outperforms 90.27% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that LUN is not too dependend on debt financing.
LUN has a worse Debt to Equity ratio (0.34) than 76.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 9.29 | ||
| Altman-Z | 1.48 |
ROIC/WACC0.62
WACC9.35%
2.3 Liquidity
LUN has a Current Ratio of 1.40. This is a normal value and indicates that LUN is financially healthy and should not expect problems in meeting its short term obligations.
LUN has a Current ratio (1.40) which is comparable to the rest of the industry.
LUN has a Quick Ratio of 1.40. This is a bad value and indicates that LUN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.96, LUN is doing worse than 61.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
LUN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.23%, which is quite good.
Measured over the past years, LUN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.55% on average per year.
EPS 1Y (TTM)9.23%
EPS 3Y-27.55%
EPS 5Y9.55%
EPS Q2Q%20%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-18.97%
3.2 Future
Based on estimates for the next years, LUN will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.86% on average per year.
LUN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.74% yearly.
EPS Next Y27.94%
EPS Next 2Y22.71%
EPS Next 3Y27.78%
EPS Next 5Y-13.86%
Revenue Next Year-10.08%
Revenue Next 2Y-2.55%
Revenue Next 3Y3.24%
Revenue Next 5Y-5.74%
3.3 Evolution
The EPS 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 19.70, the valuation of LUN can be described as rather expensive.
90.41% of the companies in the same industry are more expensive than LUN, based on the Price/Earnings ratio.
LUN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.62.
With a Price/Forward Earnings ratio of 15.28, LUN is valued correctly.
Based on the Price/Forward Earnings ratio, LUN is valued cheaper than 89.73% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. LUN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.7 | ||
| Fwd PE | 15.28 |
4.2 Price Multiples
94.32% of the companies in the same industry are more expensive than LUN, based on the Enterprise Value to EBITDA ratio.
91.89% 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 | 32.11 | ||
| EV/EBITDA | 5.36 |
4.3 Compensation for Growth
LUN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LUN has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as LUN's earnings are expected to grow with 27.78% in the coming years.
PEG (NY)0.71
PEG (5Y)2.06
EPS Next 2Y22.71%
EPS Next 3Y27.78%
5. Dividend
5.1 Amount
LUN has a Yearly Dividend Yield of 2.81%. Purely for dividend investing, there may be better candidates out there.
LUN's Dividend Yield is rather good when compared to the industry average which is at 7.55. LUN pays more dividend than 97.70% of the companies in the same industry.
LUN's Dividend Yield is a higher than the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
5.2 History
The dividend of LUN is nicely growing with an annual growth rate of 23.93%!
LUN has been paying a dividend for over 5 years, so it has already some track record.
The dividend of LUN decreased recently.
Dividend Growth(5Y)23.93%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
LUN pays out 74.43% of its income as dividend. This is not a sustainable payout ratio.
LUN's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP74.43%
EPS Next 2Y22.71%
EPS Next 3Y27.78%
TSX:LUN (2/21/2025, 7:00:00 PM)
11.82
-0.98 (-7.66%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners51.66%
Inst Owner ChangeN/A
Ins Owners0.53%
Ins Owner ChangeN/A
Market Cap10.26B
Analysts76.15
Price Target16.37 (38.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
Yearly Dividend0.27
Dividend Growth(5Y)23.93%
DP74.43%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-31.13%
Min EPS beat(2)-45.6%
Max EPS beat(2)-16.67%
EPS beat(4)0
Avg EPS beat(4)-27.06%
Min EPS beat(4)-45.6%
Max EPS beat(4)-16.67%
EPS beat(8)2
Avg EPS beat(8)-4.57%
EPS beat(12)4
Avg EPS beat(12)-16.55%
EPS beat(16)6
Avg EPS beat(16)-10.16%
Revenue beat(2)0
Avg Revenue beat(2)-5.9%
Min Revenue beat(2)-6.43%
Max Revenue beat(2)-5.38%
Revenue beat(4)0
Avg Revenue beat(4)-3.28%
Min Revenue beat(4)-6.43%
Max Revenue beat(4)-0.39%
Revenue beat(8)2
Avg Revenue beat(8)-3.01%
Revenue beat(12)4
Avg Revenue beat(12)-3.95%
Revenue beat(16)6
Avg Revenue beat(16)-2.28%
PT rev (1m)-7.41%
PT rev (3m)-6.8%
EPS NQ rev (1m)-20.45%
EPS NQ rev (3m)-20.8%
EPS NY rev (1m)-15.11%
EPS NY rev (3m)-23.73%
Revenue NQ rev (1m)-9.98%
Revenue NQ rev (3m)-10.74%
Revenue NY rev (1m)-2.25%
Revenue NY rev (3m)-4.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.7 | ||
| Fwd PE | 15.28 | ||
| P/S | 1.74 | ||
| P/FCF | 32.11 | ||
| P/OCF | 6 | ||
| P/B | 1.44 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 5.36 |
EPS(TTM)0.6
EY5.08%
EPS(NY)0.77
Fwd EY6.55%
FCF(TTM)0.37
FCFY3.11%
OCF(TTM)1.97
OCFY16.67%
SpS6.79
BVpS8.22
TBVpS7.76
PEG (NY)0.71
PEG (5Y)2.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 5.48% | ||
| ROCE | 8.54% | ||
| ROIC | 5.84% | ||
| ROICexc | 6.06% | ||
| ROICexgc | 6.24% | ||
| OM | 19.99% | ||
| PM (TTM) | 6.63% | ||
| GM | 22.77% | ||
| FCFM | 5.42% |
ROA(3y)5.89%
ROA(5y)4.5%
ROE(3y)10.4%
ROE(5y)7.98%
ROIC(3y)7.47%
ROIC(5y)5.97%
ROICexc(3y)7.96%
ROICexc(5y)6.31%
ROICexgc(3y)8.27%
ROICexgc(5y)6.56%
ROCE(3y)10.93%
ROCE(5y)8.74%
ROICexcg growth 3Y-3.57%
ROICexcg growth 5Y-2.57%
ROICexc growth 3Y-3.27%
ROICexc growth 5Y-2.71%
OM growth 3Y-6.88%
OM growth 5Y-2.09%
PM growth 3Y-4.86%
PM growth 5Y-8.91%
GM growth 3Y-7.63%
GM growth 5Y-5.34%
F-Score7
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 9.29 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 121.66% | ||
| Cap/Sales | 23.59% | ||
| Interest Coverage | 6.65 | ||
| Cash Conversion | 73.66% | ||
| Profit Quality | 81.69% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.48 |
F-Score7
WACC9.35%
ROIC/WACC0.62
Cap/Depr(3y)136.25%
Cap/Depr(5y)135.48%
Cap/Sales(3y)24.52%
Cap/Sales(5y)25.97%
Profit Quality(3y)43.84%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.23%
EPS 3Y-27.55%
EPS 5Y9.55%
EPS Q2Q%20%
EPS Next Y27.94%
EPS Next 2Y22.71%
EPS Next 3Y27.78%
EPS Next 5Y-13.86%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-18.97%
Revenue Next Year-10.08%
Revenue Next 2Y-2.55%
Revenue Next 3Y3.24%
Revenue Next 5Y-5.74%
EBIT growth 1Y46.12%
EBIT growth 3Y10.29%
EBIT growth 5Y12.08%
EBIT Next Year192.21%
EBIT Next 3Y53.16%
EBIT Next 5Y24.36%
FCF growth 1Y-42.1%
FCF growth 3Y-70.4%
FCF growth 5YN/A
OCF growth 1Y9.1%
OCF growth 3Y21.56%
OCF growth 5Y16.37%