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 796 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 has a bad growth rate and is valued cheaply. These ratings could make LIF a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year LIF was profitable.
In the past year LIF had a positive cash flow from operations.
LIF had positive earnings in each of the past 5 years.
LIF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LIF has a Return On Assets of 20.93%. This is amongst the best in the industry. LIF outperforms 97.13% of its industry peers.
The Return On Equity of LIF (27.23%) is better than 96.75% of its industry peers.
The Return On Invested Capital of LIF (16.20%) is better than 97.63% of its industry peers.
LIF had an Average Return On Invested Capital over the past 3 years of 16.52%. This is significantly below the industry average of 24.80%.
| 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 has a Profit Margin of 83.75%. This is amongst the best in the industry. LIF outperforms 98.50% of its industry peers.
LIF's Profit Margin has declined in the last couple of years.
LIF has a better Operating Margin (75.84%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of LIF has remained more or less at the same level.
LIF has a Gross Margin of 80.30%. This is amongst the best in the industry. LIF outperforms 99.00% of its industry peers.
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.
The number of shares outstanding for LIF remains at a similar level compared to 5 years ago.
There is no outstanding debt for LIF. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
LIF has an Altman-Z score of 7.16. This indicates that LIF is financially healthy and has little risk of bankruptcy at the moment.
LIF has a better Altman-Z score (7.16) than 71.16% of its industry peers.
There is no outstanding debt for LIF. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 7.16 |
ROIC/WACC1.87
WACC8.68%
2.3 Liquidity
A Current Ratio of 1.56 indicates that LIF should not have too much problems paying its short term obligations.
LIF has a Current ratio (1.56) which is comparable to the rest of the industry.
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 has a Quick ratio (1.56) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
LIF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.74%.
LIF shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.99% yearly.
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)-31.74%
EPS 3Y-22.6%
EPS 5Y-2.99%
EPS Q2Q%-64.52%
Revenue 1Y (TTM)3.83%
Revenue growth 3Y-9.26%
Revenue growth 5Y3.23%
Sales Q2Q%-36.17%
3.2 Future
The Earnings Per Share is expected to grow by 1.63% on average over the next years.
The Revenue is expected to decrease by -3.22% on average over the next years.
EPS Next Y6.66%
EPS Next 2Y5.32%
EPS Next 3Y1.83%
EPS Next 5Y1.63%
Revenue Next Year-16.67%
Revenue Next 2Y-7.07%
Revenue Next 3Y0.84%
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 correctly with a Price/Earnings ratio of 13.30.
92.76% of the companies in the same industry are more expensive than LIF, based on the Price/Earnings ratio.
LIF's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.91.
A Price/Forward Earnings ratio of 9.38 indicates a reasonable valuation of LIF.
Based on the Price/Forward Earnings ratio, LIF is valued cheaply inside the industry as 93.01% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.77, LIF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.3 | ||
| Fwd PE | 9.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LIF indicates a rather cheap valuation: LIF is cheaper than 91.14% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LIF is valued cheaply inside the industry as 96.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.07 | ||
| EV/EBITDA | 10.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LIF does not grow enough to justify the current Price/Earnings ratio.
LIF has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2
PEG (5Y)N/A
EPS Next 2Y5.32%
EPS Next 3Y1.83%
5. Dividend
5.1 Amount
LIF has a Yearly Dividend Yield of 10.71%, which is a nice return.
Compared to an average industry Dividend Yield of 2.70, LIF pays a better dividend. On top of this LIF pays more dividend than 99.88% of the companies listed in the same industry.
LIF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.71% |
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
98.72% of the earnings are spent on dividend by LIF. This is not a sustainable payout ratio.
DP98.72%
EPS Next 2Y5.32%
EPS Next 3Y1.83%
TSX:LIF (5/23/2025, 7:00:00 PM)
28.6
+0.22 (+0.78%)
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 Cap1.83B
Analysts50.91
Price Target31.93 (11.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.71% |
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)-2.8%
PT rev (3m)-5.72%
EPS NQ rev (1m)0.64%
EPS NQ rev (3m)-7.94%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-6.68%
Revenue NY rev (3m)-22.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.3 | ||
| Fwd PE | 9.38 | ||
| P/S | 8.76 | ||
| P/FCF | 9.07 | ||
| P/OCF | 9.07 | ||
| P/B | 2.85 | ||
| P/tB | 4.29 | ||
| EV/EBITDA | 10.85 |
EPS(TTM)2.15
EY7.52%
EPS(NY)3.05
Fwd EY10.67%
FCF(TTM)3.15
FCFY11.03%
OCF(TTM)3.15
OCFY11.03%
SpS3.27
BVpS10.05
TBVpS6.66
PEG (NY)2
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 | 7.16 |
F-Score6
WACC8.68%
ROIC/WACC1.87
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)-31.74%
EPS 3Y-22.6%
EPS 5Y-2.99%
EPS Q2Q%-64.52%
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%-36.17%
Revenue Next Year-16.67%
Revenue Next 2Y-7.07%
Revenue Next 3Y0.84%
Revenue Next 5Y-3.22%
EBIT growth 1Y3.94%
EBIT growth 3Y-9.66%
EBIT growth 5Y3.45%
EBIT Next Year34.29%
EBIT Next 3Y11.9%
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%