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 799 industry peers in the Metals & Mining industry. While LUN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. LUN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year LUN was profitable.
LUN had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of -1.96%, LUN belongs to the best of the industry, outperforming 80.98% of the companies in the same industry.
The Return On Equity of LUN (-4.60%) is better than 75.72% of its industry peers.
LUN has a better Return On Invested Capital (4.48%) than 91.11% of its industry peers.
LUN had an Average Return On Invested Capital over the past 3 years of 3.70%. This is significantly below the industry average of 24.74%.
The last Return On Invested Capital (4.48%) for LUN is above the 3 year average (3.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.96% | ||
| ROE | -4.6% | ||
| ROIC | 4.48% |
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
LUN has a Operating Margin of 23.63%. This is amongst the best in the industry. LUN outperforms 93.87% of its industry peers.
LUN's Operating Margin has improved in the last couple of years.
The Gross Margin of LUN (26.77%) is better than 90.99% of its industry peers.
In the last couple of years the Gross Margin of LUN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.63% | ||
| PM (TTM) | N/A | ||
| GM | 26.77% |
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
LUN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, LUN has about the same amount of shares outstanding.
LUN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for LUN is higher compared to a year ago.
2.2 Solvency
LUN has an Altman-Z score of 1.50. 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 (1.50) which is comparable to the rest of the industry.
The Debt to FCF ratio of LUN is 2.82, which is a good value as it means it would take LUN, 2.82 years of fcf income to pay off all of its debts.
LUN has a better Debt to FCF ratio (2.82) than 93.12% of its industry peers.
LUN has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
LUN has a worse Debt to Equity ratio (0.36) than 70.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.82 | ||
| Altman-Z | 1.5 |
ROIC/WACC0.54
WACC8.36%
2.3 Liquidity
LUN has a Current Ratio of 1.72. This is a normal value and indicates that LUN is financially healthy and should not expect problems in meeting its short term obligations.
LUN's Current ratio of 1.72 is in line compared to the rest of the industry. LUN outperforms 52.69% of its industry peers.
LUN has a Quick Ratio of 1.37. 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 Quick ratio (1.37) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.92% over the past year.
The Earnings Per Share has been growing by 11.05% on average over the past years. This is quite good.
Looking at the last year, LUN shows a small growth in Revenue. The Revenue has grown by 0.90% in the last year.
Measured over the past years, LUN shows a quite strong growth in Revenue. The Revenue has been growing by 12.58% on average per year.
EPS 1Y (TTM)16.92%
EPS 3Y-25.88%
EPS 5Y11.05%
EPS Q2Q%50%
Revenue 1Y (TTM)0.9%
Revenue growth 3Y0.93%
Revenue growth 5Y12.58%
Sales Q2Q%-18.97%
3.2 Future
The Earnings Per Share is expected to decrease by -11.15% on average over the next years. This is quite bad
Based on estimates for the next years, LUN will show a decrease in Revenue. The Revenue will decrease by -3.94% on average per year.
EPS Next Y3.66%
EPS Next 2Y11.73%
EPS Next 3Y7.07%
EPS Next 5Y-11.15%
Revenue Next Year-12.37%
Revenue Next 2Y-4.31%
Revenue Next 3Y-3.9%
Revenue Next 5Y-3.94%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.10, which indicates a rather expensive current valuation of LUN.
Compared to the rest of the industry, the Price/Earnings ratio of LUN indicates a rather cheap valuation: LUN is cheaper than 90.74% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.92. LUN is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 18.36, which indicates a rather expensive current valuation of LUN.
90.24% of the companies in the same industry are more expensive than LUN, based on the Price/Forward Earnings ratio.
LUN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.1 | ||
| Fwd PE | 18.36 |
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 94.12% of the companies listed in the same industry.
96.37% 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 | 10.5 | ||
| EV/EBITDA | 6.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
LUN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.22
PEG (5Y)1.73
EPS Next 2Y11.73%
EPS Next 3Y7.07%
5. Dividend
5.1 Amount
LUN has a Yearly Dividend Yield of 3.41%.
Compared to an average industry Dividend Yield of 3.00, LUN pays a better dividend. On top of this LUN pays more dividend than 98.25% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, LUN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
5.2 History
The dividend of LUN is nicely growing with an annual growth rate of 23.66%!
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.
DP-99.49%
EPS Next 2Y11.73%
EPS Next 3Y7.07%
TSX:LUN (4/24/2025, 7:00:00 PM)
12.03
+0.27 (+2.3%)
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 Cap10.35B
Analysts74.62
Price Target16.21 (34.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
Yearly Dividend0.36
Dividend Growth(5Y)23.66%
DP-99.49%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-25.84%
Min EPS beat(2)-45.6%
Max EPS beat(2)-6.08%
EPS beat(4)0
Avg EPS beat(4)-22.8%
Min EPS beat(4)-45.6%
Max EPS beat(4)-6.08%
EPS beat(8)1
Avg EPS beat(8)-21.12%
EPS beat(12)3
Avg EPS beat(12)-17.59%
EPS beat(16)5
Avg EPS beat(16)-13.95%
Revenue beat(2)0
Avg Revenue beat(2)-13.43%
Min Revenue beat(2)-21.49%
Max Revenue beat(2)-5.38%
Revenue beat(4)0
Avg Revenue beat(4)-8.42%
Min Revenue beat(4)-21.49%
Max Revenue beat(4)-0.39%
Revenue beat(8)1
Avg Revenue beat(8)-6.45%
Revenue beat(12)3
Avg Revenue beat(12)-6.31%
Revenue beat(16)5
Avg Revenue beat(16)-4.68%
PT rev (1m)0.24%
PT rev (3m)-8.32%
EPS NQ rev (1m)3.27%
EPS NQ rev (3m)-27.36%
EPS NY rev (1m)-13.27%
EPS NY rev (3m)-39.06%
Revenue NQ rev (1m)-1.12%
Revenue NQ rev (3m)-19.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-15.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.1 | ||
| Fwd PE | 18.36 | ||
| P/S | 2.18 | ||
| P/FCF | 10.5 | ||
| P/OCF | 4.92 | ||
| P/B | 1.69 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 6.37 |
EPS(TTM)0.63
EY5.24%
EPS(NY)0.66
Fwd EY5.45%
FCF(TTM)1.15
FCFY9.53%
OCF(TTM)2.45
OCFY20.34%
SpS5.51
BVpS7.12
TBVpS6.85
PEG (NY)5.22
PEG (5Y)1.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.96% | ||
| ROE | -4.6% | ||
| ROCE | 9.3% | ||
| ROIC | 4.48% | ||
| ROICexc | 4.7% | ||
| ROICexgc | 4.8% | ||
| OM | 23.63% | ||
| PM (TTM) | N/A | ||
| GM | 26.77% | ||
| FCFM | 20.79% |
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-Score6
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.82 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 132.84% | ||
| Cap/Sales | 23.59% | ||
| Interest Coverage | 6.78 | ||
| Cash Conversion | 107.23% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 1.5 |
F-Score6
WACC8.36%
ROIC/WACC0.54
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)16.92%
EPS 3Y-25.88%
EPS 5Y11.05%
EPS Q2Q%50%
EPS Next Y3.66%
EPS Next 2Y11.73%
EPS Next 3Y7.07%
EPS Next 5Y-11.15%
Revenue 1Y (TTM)0.9%
Revenue growth 3Y0.93%
Revenue growth 5Y12.58%
Sales Q2Q%-18.97%
Revenue Next Year-12.37%
Revenue Next 2Y-4.31%
Revenue Next 3Y-3.9%
Revenue Next 5Y-3.94%
EBIT growth 1Y52.49%
EBIT growth 3Y-14.05%
EBIT growth 5Y21.76%
EBIT Next Year69.01%
EBIT Next 3Y22.15%
EBIT Next 5Y11.6%
FCF growth 1Y20259.1%
FCF growth 3Y-9.28%
FCF growth 5YN/A
OCF growth 1Y49.4%
OCF growth 3Y0.76%
OCF growth 5Y21.89%