LABRADOR IRON ORE ROYALTY CO (LIF.CA) Stock Fundamental Analysis
Canada - TSX:LIF - CA5054401073 - Common Stock
28.19 CAD
-0.01 (-0.04%)
We assign a fundamental rating of 6 out of 10 to LIF. LIF was compared to 822 industry peers in the Metals & Mining industry. LIF has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
LIF had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 14.17%, LIF belongs to the best of the industry, outperforming 95.26% of the companies in the same industry.
LIF's Return On Equity of 17.73% is amongst the best of the industry. LIF outperforms 94.40% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.05%, LIF belongs to the top of the industry, outperforming 96.96% of the companies in the same industry.
LIF had an Average Return On Invested Capital over the past 3 years of 16.52%. This is above the industry average of 12.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.17% | ||
| ROE | 17.73% | ||
| ROIC | 14.05% |
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 62.29% is amongst the best of the industry. LIF outperforms 99.03% of its industry peers.
In the last couple of years the Profit Margin of LIF has declined.
With an excellent Operating Margin value of 75.15%, LIF belongs to the best 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.
LIF has a Gross Margin of 80.31%. This is amongst the best in the industry. LIF outperforms 99.03% of its industry peers.
LIF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 75.15% | ||
| PM (TTM) | 62.29% | ||
| GM | 80.31% |
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
LIF has an Altman-Z score of 8.13. This indicates that LIF is financially healthy and has little risk of bankruptcy at the moment.
LIF has a better Altman-Z score (8.13) than 66.06% 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 | 8.13 |
ROIC/WACC1.63
WACC8.6%
2.3 Liquidity
A Current Ratio of 1.98 indicates that LIF should not have too much problems paying its short term obligations.
LIF has a Current ratio (1.98) which is comparable to the rest of the industry.
LIF has a Quick Ratio of 1.98. This is a normal value and indicates that LIF is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of LIF (1.98) is comparable to the rest of the industry.
LIF does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.98 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
The earnings per share for LIF have decreased strongly by -45.42% in the last year.
Measured over the past years, LIF shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.99% on average per year.
LIF shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.20%.
Measured over the past years, LIF shows a small growth in Revenue. The Revenue has been growing by 3.23% on average per year.
EPS 1Y (TTM)-45.42%
EPS 3Y-22.6%
EPS 5Y-2.99%
EPS Q2Q%-46.15%
Revenue 1Y (TTM)-14.2%
Revenue growth 3Y-9.26%
Revenue growth 5Y3.23%
Sales Q2Q%-11.91%
3.2 Future
LIF is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.26% yearly.
The Revenue is expected to decrease by -2.20% on average over the next years.
EPS Next Y-33.43%
EPS Next 2Y-4.83%
EPS Next 3Y-3.94%
EPS Next 5Y-2.26%
Revenue Next Year-20.14%
Revenue Next 2Y-10.87%
Revenue Next 3Y-5.43%
Revenue Next 5Y-2.2%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
LIF is valuated correctly with a Price/Earnings ratio of 15.75.
Based on the Price/Earnings ratio, LIF is valued cheaper than 93.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.86, LIF is valued a bit cheaper.
With a Price/Forward Earnings ratio of 11.32, the valuation of LIF can be described as very reasonable.
93.19% of the companies in the same industry are more expensive than LIF, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LIF to the average of the S&P500 Index (23.32), we can say LIF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.75 | ||
| Fwd PE | 11.32 |
4.2 Price Multiples
93.55% of the companies in the same industry are more expensive than LIF, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LIF indicates a rather cheap valuation: LIF is cheaper than 96.35% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.64 | ||
| EV/EBITDA | 12.56 |
4.3 Compensation for Growth
The excellent profitability rating of LIF may justify a higher PE ratio.
LIF's earnings are expected to decrease with -3.94% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.83%
EPS Next 3Y-3.94%
5. Dividend
5.1 Amount
LIF has a Yearly Dividend Yield of 6.91%, which is a nice return.
Compared to an average industry Dividend Yield of 9.53, LIF pays a better dividend. On top of this LIF pays more dividend than 99.39% 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
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 172.01% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of LIF has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP172.01%
EPS Next 2Y-4.83%
EPS Next 3Y-3.94%
TSX:LIF (10/3/2025, 7:00:00 PM)
28.19
-0.01 (-0.04%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners20.53%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap1.80B
Analysts50.91
Price Target30.5 (8.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
Yearly Dividend2.7
Dividend Growth(5Y)-5.33%
DP172.01%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-48.77%
Min EPS beat(2)-58.24%
Max EPS beat(2)-39.29%
EPS beat(4)0
Avg EPS beat(4)-36.38%
Min EPS beat(4)-58.24%
Max EPS beat(4)-23.06%
EPS beat(8)1
Avg EPS beat(8)-19.76%
EPS beat(12)2
Avg EPS beat(12)-14.65%
EPS beat(16)4
Avg EPS beat(16)-8.74%
Revenue beat(2)2
Avg Revenue beat(2)1324.34%
Min Revenue beat(2)1183.46%
Max Revenue beat(2)1465.22%
Revenue beat(4)4
Avg Revenue beat(4)1062.55%
Min Revenue beat(4)24.64%
Max Revenue beat(4)1576.87%
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)-2.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.38%
EPS NY rev (1m)-7.53%
EPS NY rev (3m)-37.59%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.12%
Revenue NY rev (3m)-4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.75 | ||
| Fwd PE | 11.32 | ||
| P/S | 9.9 | ||
| P/FCF | 13.64 | ||
| P/OCF | 13.64 | ||
| P/B | 2.82 | ||
| P/tB | 4.23 | ||
| EV/EBITDA | 12.56 |
EPS(TTM)1.79
EY6.35%
EPS(NY)2.49
Fwd EY8.84%
FCF(TTM)2.07
FCFY7.33%
OCF(TTM)2.07
OCFY7.33%
SpS2.85
BVpS10
TBVpS6.67
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.17% | ||
| ROE | 17.73% | ||
| ROCE | 17.73% | ||
| ROIC | 14.05% | ||
| ROICexc | 14.13% | ||
| ROICexgc | 19.58% | ||
| OM | 75.15% | ||
| PM (TTM) | 62.29% | ||
| GM | 80.31% | ||
| FCFM | 72.6% |
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 Turnover0.23
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 | 92.35% | ||
| Profit Quality | 116.55% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 8.13 |
F-Score6
WACC8.6%
ROIC/WACC1.63
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)-45.42%
EPS 3Y-22.6%
EPS 5Y-2.99%
EPS Q2Q%-46.15%
EPS Next Y-33.43%
EPS Next 2Y-4.83%
EPS Next 3Y-3.94%
EPS Next 5Y-2.26%
Revenue 1Y (TTM)-14.2%
Revenue growth 3Y-9.26%
Revenue growth 5Y3.23%
Sales Q2Q%-11.91%
Revenue Next Year-20.14%
Revenue Next 2Y-10.87%
Revenue Next 3Y-5.43%
Revenue Next 5Y-2.2%
EBIT growth 1Y-15.01%
EBIT growth 3Y-9.66%
EBIT growth 5Y3.45%
EBIT Next Year9.94%
EBIT Next 3Y6.14%
EBIT Next 5Y8.33%
FCF growth 1Y-33.67%
FCF growth 3Y-20.54%
FCF growth 5Y-2.11%
OCF growth 1Y-33.67%
OCF growth 3Y-20.54%
OCF growth 5Y-2.11%