LABRADOR IRON ORE ROYALTY CO (LIF.CA) Stock Fundamental Analysis
TSX:LIF - Toronto Stock Exchange - CA5054401073 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to LIF. LIF was compared to 805 industry peers in the Metals & Mining industry. LIF scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LIF is cheap, but on the other hand it scores bad on growth. This makes LIF very considerable for value investing!
1. Profitability
1.1 Basic Checks
LIF had positive earnings in the past year.
In the past year LIF had a positive cash flow from operations.
Each year in the past 5 years LIF has been profitable.
LIF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LIF (17.04%) is better than 96.27% of its industry peers.
LIF has a better Return On Equity (21.69%) than 95.53% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.72%, LIF belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LIF is above the industry average of 12.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.04% | ||
| ROE | 21.69% | ||
| ROIC | 14.72% |
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
Looking at the Profit Margin, with a value of 72.74%, LIF belongs to the top of the industry, outperforming 98.51% of the companies in the same industry.
LIF's Profit Margin has declined in the last couple of years.
The Operating Margin of LIF (75.39%) is better than 99.88% of its industry peers.
LIF's Operating Margin has been stable in the last couple of years.
LIF has a Gross Margin of 80.33%. This is amongst the best in the industry. LIF outperforms 99.01% of its industry peers.
LIF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 75.39% | ||
| PM (TTM) | 72.74% | ||
| GM | 80.33% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LIF is creating value.
The number of shares outstanding for LIF remains at a similar level compared to 1 year ago.
Compared to 5 years ago, LIF has about the same amount of shares outstanding.
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
LIF has an Altman-Z score of 7.52. This indicates that LIF is financially healthy and has little risk of bankruptcy at the moment.
LIF's Altman-Z score of 7.52 is fine compared to the rest of the industry. LIF outperforms 70.06% 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 | 7.52 |
ROIC/WACC1.7
WACC8.68%
2.3 Liquidity
A Current Ratio of 1.54 indicates that LIF should not have too much problems paying its short term obligations.
With a Current ratio value of 1.54, LIF perfoms like the industry average, outperforming 50.81% of the companies in the same industry.
A Quick Ratio of 1.54 indicates that LIF should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.54, LIF perfoms like the industry average, outperforming 52.92% of the companies in the same industry.
The current and quick ratio evaluation for LIF is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 |
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.
The Revenue for LIF has decreased by -10.55% in the past year. This is quite bad
LIF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.23% yearly.
EPS 1Y (TTM)-31.74%
EPS 3Y-22.6%
EPS 5Y-2.99%
EPS Q2Q%-64.52%
Revenue 1Y (TTM)-10.55%
Revenue growth 3Y-9.26%
Revenue growth 5Y3.23%
Sales Q2Q%-36.17%
3.2 Future
LIF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.32% yearly.
The Revenue is expected to grow by 0.05% on average over the next years.
EPS Next Y6.66%
EPS Next 2Y5.32%
EPS Next 3Y1.83%
EPS Next 5Y3.32%
Revenue Next Year-16.67%
Revenue Next 2Y-7.07%
Revenue Next 3Y0.84%
Revenue Next 5Y0.05%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 12.78, LIF is valued correctly.
LIF's Price/Earnings ratio is rather cheap when compared to the industry. LIF is cheaper than 93.54% of the companies in the same industry.
When comparing the Price/Earnings ratio of LIF to the average of the S&P500 Index (27.41), we can say LIF is valued rather cheaply.
The Price/Forward Earnings ratio is 9.01, which indicates a very decent valuation of LIF.
Based on the Price/Forward Earnings ratio, LIF is valued cheaply inside the industry as 93.04% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 35.19. LIF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.78 | ||
| Fwd PE | 9.01 |
4.2 Price Multiples
LIF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LIF is cheaper than 92.05% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LIF is valued cheaply inside the industry as 97.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.94 | ||
| EV/EBITDA | 11.72 |
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.
The excellent profitability rating of LIF may justify a higher PE ratio.
PEG (NY)1.92
PEG (5Y)N/A
EPS Next 2Y5.32%
EPS Next 3Y1.83%
5. Dividend
5.1 Amount
LIF has a Yearly Dividend Yield of 8.24%, which is a nice return.
Compared to an average industry Dividend Yield of 14.98, LIF pays a better dividend. On top of this LIF pays more dividend than 99.63% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, LIF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.24% |
5.2 History
The dividend of LIF decreases each year by -5.33%.
LIF has been paying a dividend for at least 10 years, so it has a reliable track record.
LIF has decreased its dividend recently.
Dividend Growth(5Y)-5.33%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
LIF pays out 140.01% of its income as dividend. This is not a sustainable payout ratio.
DP140.01%
EPS Next 2Y5.32%
EPS Next 3Y1.83%
TSX:LIF (7/11/2025, 7:00:00 PM)
27.47
+0.18 (+0.66%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners21.03%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap1.76B
Analysts50.91
Price Target31.42 (14.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.24% |
Yearly Dividend2.7
Dividend Growth(5Y)-5.33%
DP140.01%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-41.58%
Min EPS beat(2)-58.24%
Max EPS beat(2)-24.91%
EPS beat(4)0
Avg EPS beat(4)-27.6%
Min EPS beat(4)-58.24%
Max EPS beat(4)-4.18%
EPS beat(8)1
Avg EPS beat(8)-17.2%
EPS beat(12)2
Avg EPS beat(12)-11.91%
EPS beat(16)4
Avg EPS beat(16)-6.62%
Revenue beat(2)2
Avg Revenue beat(2)604.05%
Min Revenue beat(2)24.64%
Max Revenue beat(2)1183.46%
Revenue beat(4)4
Avg Revenue beat(4)1216.9%
Min Revenue beat(4)24.64%
Max Revenue beat(4)2082.62%
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)0%
PT rev (3m)-4.35%
EPS NQ rev (1m)-1.8%
EPS NQ rev (3m)-8.39%
EPS NY rev (1m)0%
EPS NY rev (3m)3.59%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-22.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.78 | ||
| Fwd PE | 9.01 | ||
| P/S | 9.33 | ||
| P/FCF | 8.94 | ||
| P/OCF | 8.94 | ||
| P/B | 2.78 | ||
| P/tB | 4.21 | ||
| EV/EBITDA | 11.72 |
EPS(TTM)2.15
EY7.83%
EPS(NY)3.05
Fwd EY11.1%
FCF(TTM)3.07
FCFY11.18%
OCF(TTM)3.07
OCFY11.18%
SpS2.95
BVpS9.88
TBVpS6.52
PEG (NY)1.92
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.04% | ||
| ROE | 21.69% | ||
| ROCE | 18.59% | ||
| ROIC | 14.72% | ||
| ROICexc | 15.1% | ||
| ROICexgc | 21.22% | ||
| OM | 75.39% | ||
| PM (TTM) | 72.74% | ||
| GM | 80.33% | ||
| FCFM | 104.29% |
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-Score5
Asset Turnover0.23
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 | 132.48% | ||
| Profit Quality | 143.37% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 7.52 |
F-Score5
WACC8.68%
ROIC/WACC1.7
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 5Y3.32%
Revenue 1Y (TTM)-10.55%
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 5Y0.05%
EBIT growth 1Y-11.1%
EBIT growth 3Y-9.66%
EBIT growth 5Y3.45%
EBIT Next Year34.29%
EBIT Next 3Y11.9%
EBIT Next 5Y10.42%
FCF growth 1Y-1.47%
FCF growth 3Y-20.54%
FCF growth 5Y-2.11%
OCF growth 1Y-1.47%
OCF growth 3Y-20.54%
OCF growth 5Y-2.11%