LABRADOR IRON ORE ROYALTY CO (LIF.CA) Stock Fundamental Analysis
TSX:LIF - Toronto Stock Exchange - CA5054401073 - Common Stock - Currency: CAD
Taking everything into account, LIF scores 6 out of 10 in our fundamental rating. LIF was compared to 811 industry peers in the Metals & Mining industry. LIF gets an excellent profitability rating and is at the same time showing great financial health properties. LIF is valued quite cheap, but it does not seem to be growing. These ratings could make LIF a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year LIF was profitable.
LIF had a positive operating cash flow in the past year.
LIF had positive earnings in each of the past 5 years.
In the past 5 years LIF always reported a positive cash flow from operatings.
1.2 Ratios
LIF's Return On Assets of 20.93% is amongst the best of the industry. LIF outperforms 97.66% of its industry peers.
With an excellent Return On Equity value of 27.23%, LIF belongs to the best of the industry, outperforming 97.04% of the companies in the same industry.
LIF has a better Return On Invested Capital (16.20%) than 97.78% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LIF is significantly below the industry average of 24.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.93% | ||
| ROE | 27.23% | ||
| ROIC | 16.2% |
ROA(3y)25.11%
ROA(5y)30.21%
ROE(3y)32.37%
ROE(5y)40.91%
ROIC(3y)16.52%
ROIC(5y)18.39%
1.3 Margins
LIF's Profit Margin of 83.75% is amongst the best of the industry. LIF outperforms 98.77% of its industry peers.
LIF's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 75.84%, LIF belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of LIF has remained more or less at the same level.
Looking at the Gross Margin, with a value of 80.30%, LIF belongs to the top of the industry, outperforming 98.89% of the companies in the same industry.
LIF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 75.84% | ||
| PM (TTM) | 83.75% | ||
| GM | 80.3% |
OM growth 3Y-0.44%
OM growth 5Y0.21%
PM growth 3Y-14.87%
PM growth 5Y-6.17%
GM growth 3Y0.07%
GM growth 5Y0%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LIF is creating value.
LIF has about the same amout of shares outstanding than it did 1 year ago.
LIF has about the same amout of shares outstanding than it did 5 years ago.
LIF 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
An Altman-Z score of 7.34 indicates that LIF is not in any danger for bankruptcy at the moment.
LIF has a better Altman-Z score (7.34) than 71.39% of its industry peers.
LIF 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 | 7.34 |
ROIC/WACC1.83
WACC8.85%
2.3 Liquidity
LIF has a Current Ratio of 1.56. This is a normal value and indicates that LIF is financially healthy and should not expect problems in meeting its short term obligations.
LIF's Current ratio of 1.56 is in line compared to the rest of the industry. LIF outperforms 50.80% of its industry peers.
LIF has a Quick Ratio of 1.56. This is a normal value and indicates that LIF is financially healthy and should not expect problems in meeting its short term obligations.
LIF's Quick ratio of 1.56 is in line compared to the rest of the industry. LIF outperforms 52.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
LIF shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.16%.
The Earnings Per Share has been decreasing by -2.99% on average over the past years.
Looking at the last year, LIF shows a small growth in Revenue. The Revenue has grown by 3.83% in the last year.
The Revenue has been growing slightly by 3.23% on average over the past years.
EPS 1Y (TTM)-5.16%
EPS 3Y-22.6%
EPS 5Y-2.99%
EPS Q2Q%-36.21%
Revenue 1Y (TTM)3.83%
Revenue growth 3Y-9.26%
Revenue growth 5Y3.23%
Sales Q2Q%3.64%
3.2 Future
The Earnings Per Share is expected to grow by 1.63% on average over the next years.
LIF is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.22% yearly.
EPS Next Y6.66%
EPS Next 2Y5.32%
EPS Next 3Y1.83%
EPS Next 5Y1.63%
Revenue Next Year-10.71%
Revenue Next 2Y-6.63%
Revenue Next 3Y1.73%
Revenue Next 5Y-3.22%
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 accelerating.
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
LIF is valuated reasonably with a Price/Earnings ratio of 10.72.
Based on the Price/Earnings ratio, LIF is valued cheaper than 94.45% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.75, LIF is valued rather cheaply.
A Price/Forward Earnings ratio of 10.05 indicates a reasonable valuation of LIF.
Based on the Price/Forward Earnings ratio, LIF is valued cheaply inside the industry as 92.72% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.49. LIF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.72 | ||
| Fwd PE | 10.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LIF is valued cheaper than 91.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LIF indicates a rather cheap valuation: LIF is cheaper than 96.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.35 | ||
| EV/EBITDA | 11.2 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
LIF has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.61
PEG (5Y)N/A
EPS Next 2Y5.32%
EPS Next 3Y1.83%
5. Dividend
5.1 Amount
LIF has a Yearly Dividend Yield of 10.43%, which is a nice return.
LIF's Dividend Yield is rather good when compared to the industry average which is at 2.89. LIF pays more dividend than 99.88% of the companies in the same industry.
LIF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.43% |
5.2 History
The dividend of LIF decreases each year by -5.33%.
LIF has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-5.33%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
LIF pays out 98.72% of its income as dividend. This is not a sustainable payout ratio.
DP98.72%
EPS Next 2Y5.32%
EPS Next 3Y1.83%
TSX:LIF (5/1/2025, 7:00:00 PM)
29.49
-0.37 (-1.24%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners20.59%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap1.89B
Analysts50.91
Price Target31.93 (8.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.43% |
Yearly Dividend2.7
Dividend Growth(5Y)-5.33%
DP98.72%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.99%
Min EPS beat(2)-24.91%
Max EPS beat(2)-23.06%
EPS beat(4)1
Avg EPS beat(4)-8.83%
Min EPS beat(4)-24.91%
Max EPS beat(4)16.85%
EPS beat(8)1
Avg EPS beat(8)-14.03%
EPS beat(12)2
Avg EPS beat(12)-8.34%
EPS beat(16)4
Avg EPS beat(16)-3.93%
Revenue beat(2)2
Avg Revenue beat(2)800.76%
Min Revenue beat(2)24.64%
Max Revenue beat(2)1576.87%
Revenue beat(4)4
Avg Revenue beat(4)1448.26%
Min Revenue beat(4)24.64%
Max Revenue beat(4)2108.93%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-5.72%
PT rev (3m)-4.18%
EPS NQ rev (1m)-4.31%
EPS NQ rev (3m)5.07%
EPS NY rev (1m)3.59%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-16.85%
Revenue NY rev (3m)-16.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.72 | ||
| Fwd PE | 10.05 | ||
| P/S | 9.03 | ||
| P/FCF | 9.35 | ||
| P/OCF | 9.35 | ||
| P/B | 2.94 | ||
| P/tB | 4.43 | ||
| EV/EBITDA | 11.2 |
EPS(TTM)2.75
EY9.33%
EPS(NY)2.93
Fwd EY9.95%
FCF(TTM)3.15
FCFY10.7%
OCF(TTM)3.15
OCFY10.7%
SpS3.27
BVpS10.05
TBVpS6.66
PEG (NY)1.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.93% | ||
| ROE | 27.23% | ||
| ROCE | 20.45% | ||
| ROIC | 16.2% | ||
| ROICexc | 17.13% | ||
| ROICexgc | 24.32% | ||
| OM | 75.84% | ||
| PM (TTM) | 83.75% | ||
| GM | 80.3% | ||
| FCFM | 96.61% |
ROA(3y)25.11%
ROA(5y)30.21%
ROE(3y)32.37%
ROE(5y)40.91%
ROIC(3y)16.52%
ROIC(5y)18.39%
ROICexc(3y)17.24%
ROICexc(5y)20.14%
ROICexgc(3y)24.59%
ROICexgc(5y)31.09%
ROCE(3y)20.85%
ROCE(5y)23.21%
ROICexcg growth 3Y-19.29%
ROICexcg growth 5Y-5.31%
ROICexc growth 3Y-15.33%
ROICexc growth 5Y-1.3%
OM growth 3Y-0.44%
OM growth 5Y0.21%
PM growth 3Y-14.87%
PM growth 5Y-6.17%
GM growth 3Y0.07%
GM growth 5Y0%
F-Score6
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 122.54% | ||
| Profit Quality | 115.35% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 7.34 |
F-Score6
WACC8.85%
ROIC/WACC1.83
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)88.86%
Profit Quality(5y)89.95%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.16%
EPS 3Y-22.6%
EPS 5Y-2.99%
EPS Q2Q%-36.21%
EPS Next Y6.66%
EPS Next 2Y5.32%
EPS Next 3Y1.83%
EPS Next 5Y1.63%
Revenue 1Y (TTM)3.83%
Revenue growth 3Y-9.26%
Revenue growth 5Y3.23%
Sales Q2Q%3.64%
Revenue Next Year-10.71%
Revenue Next 2Y-6.63%
Revenue Next 3Y1.73%
Revenue Next 5Y-3.22%
EBIT growth 1Y3.94%
EBIT growth 3Y-9.66%
EBIT growth 5Y3.45%
EBIT Next Year46.22%
EBIT Next 3Y10.12%
EBIT Next 5YN/A
FCF growth 1Y32.41%
FCF growth 3Y-20.54%
FCF growth 5Y-2.11%
OCF growth 1Y32.41%
OCF growth 3Y-20.54%
OCF growth 5Y-2.11%