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LUCARA DIAMOND CORP (LUC.CA) Stock Fundamental Analysis

TSX:LUC - Toronto Stock Exchange - CA54928Q1081 - Common Stock - Currency: CAD

0.35  -0.01 (-2.78%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to LUC. LUC was compared to 832 industry peers in the Metals & Mining industry. While LUC is still in line with the averages on profitability rating, there are concerns on its financial health. LUC has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

In the past year LUC has reported negative net income.
LUC had a positive operating cash flow in the past year.
In multiple years LUC reported negative net income over the last 5 years.
Of the past 5 years LUC 4 years had a positive operating cash flow.
LUC.CA Yearly Net Income VS EBIT VS OCF VS FCFLUC.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M 100M 150M

1.2 Ratios

Looking at the Return On Assets, with a value of -5.04%, LUC is in the better half of the industry, outperforming 69.61% of the companies in the same industry.
LUC has a Return On Equity of -13.32%. This is comparable to the rest of the industry: LUC outperforms 57.30% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.52%, LUC belongs to the top of the industry, outperforming 89.96% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LUC is below the industry average of 11.94%.
The last Return On Invested Capital (3.52%) for LUC is well below the 3 year average (8.85%), which needs to be investigated, but indicates that LUC had better years and this may not be a problem.
Industry RankSector Rank
ROA -5.04%
ROE -13.32%
ROIC 3.52%
ROA(3y)3.47%
ROA(5y)1.24%
ROE(3y)5.39%
ROE(5y)1.78%
ROIC(3y)8.85%
ROIC(5y)N/A
LUC.CA Yearly ROA, ROE, ROICLUC.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 30 40

1.3 Margins

The Operating Margin of LUC (18.07%) is better than 92.10% of its industry peers.
In the last couple of years the Operating Margin of LUC has grown nicely.
The Gross Margin of LUC (30.40%) is better than 91.43% of its industry peers.
In the last couple of years the Gross Margin of LUC has grown nicely.
Industry RankSector Rank
OM 18.07%
PM (TTM) N/A
GM 30.4%
OM growth 3YN/A
OM growth 5Y2.86%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y3.15%
LUC.CA Yearly Profit, Operating, Gross MarginsLUC.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60

1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LUC is destroying value.
LUC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for LUC has been increased compared to 5 years ago.
Compared to 1 year ago, LUC has a worse debt to assets ratio.
LUC.CA Yearly Shares OutstandingLUC.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M
LUC.CA Yearly Total Debt VS Total AssetsLUC.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

2.2 Solvency

Based on the Altman-Z score of 0.58, we must say that LUC is in the distress zone and has some risk of bankruptcy.
LUC's Altman-Z score of 0.58 is in line compared to the rest of the industry. LUC outperforms 44.58% of its industry peers.
LUC has a Debt/Equity ratio of 0.78. This is a neutral value indicating LUC is somewhat dependend on debt financing.
The Debt to Equity ratio of LUC (0.78) is worse than 81.79% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.78
Debt/FCF N/A
Altman-Z 0.58
ROIC/WACC0.29
WACC11.96%
LUC.CA Yearly LT Debt VS Equity VS FCFLUC.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M

2.3 Liquidity

A Current Ratio of 1.38 indicates that LUC should not have too much problems paying its short term obligations.
The Current ratio of LUC (1.38) is comparable to the rest of the industry.
LUC has a Quick Ratio of 1.38. This is a bad value and indicates that LUC is not financially healthy enough and could expect problems in meeting its short term obligations.
LUC has a worse Quick ratio (0.89) than 62.78% of its industry peers.
Industry RankSector Rank
Current Ratio 1.38
Quick Ratio 0.89
LUC.CA Yearly Current Assets VS Current LiabilitesLUC.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M

2

3. Growth

3.1 Past

The earnings per share for LUC have decreased strongly by -240.00% in the last year.
Looking at the last year, LUC shows a very negative growth in Revenue. The Revenue has decreased by -11.81% in the last year.
LUC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.13% yearly.
EPS 1Y (TTM)-240%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-100%
Revenue 1Y (TTM)-11.81%
Revenue growth 3Y12.28%
Revenue growth 5Y0.13%
Sales Q2Q%-22.14%

3.2 Future

The Earnings Per Share is expected to grow by 44.38% on average over the next years. This is a very strong growth
Based on estimates for the next years, LUC will show a decrease in Revenue. The Revenue will decrease by -1.55% on average per year.
EPS Next Y140.4%
EPS Next 2Y95.4%
EPS Next 3Y44.39%
EPS Next 5YN/A
Revenue Next Year-10.71%
Revenue Next 2Y6.43%
Revenue Next 3Y-1.55%
Revenue Next 5YN/A

3.3 Evolution

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.
LUC.CA Yearly Revenue VS EstimatesLUC.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M
LUC.CA Yearly EPS VS EstimatesLUC.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.1 0.2

6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for LUC. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 2.68, which indicates a rather cheap valuation of LUC.
Based on the Price/Forward Earnings ratio, LUC is valued cheaply inside the industry as 98.66% of the companies are valued more expensively.
LUC is valuated cheaply when we compare the Price/Forward Earnings ratio to 94.77, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 2.68
LUC.CA Price Earnings VS Forward Price EarningsLUC.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LUC indicates a rather cheap valuation: LUC is cheaper than 92.91% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 6.69
LUC.CA Per share dataLUC.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.2 -0.2 0.4 0.6 0.8

4.3 Compensation for Growth

LUC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of LUC may justify a higher PE ratio.
A more expensive valuation may be justified as LUC's earnings are expected to grow with 44.38% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y95.4%
EPS Next 3Y44.39%

0

5. Dividend

5.1 Amount

LUC does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

LUCARA DIAMOND CORP

TSX:LUC (2/7/2025, 7:00:00 PM)

0.35

-0.01 (-2.78%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)11-13 2024-11-13/amc
Earnings (Next)02-21 2025-02-21/amc
Inst Owners16.28%
Inst Owner ChangeN/A
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap157.91M
Analysts45.71
Price Target0.51 (45.71%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-62.87%
Min EPS beat(2)-100%
Max EPS beat(2)-25.74%
EPS beat(4)0
Avg EPS beat(4)-159.82%
Min EPS beat(4)-364.03%
Max EPS beat(4)-25.74%
EPS beat(8)0
Avg EPS beat(8)-113.41%
EPS beat(12)2
Avg EPS beat(12)-70.98%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-66.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-80%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-21.66%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 2.68
P/S 0.68
P/FCF N/A
P/OCF 3.2
P/B 0.43
P/tB 0.43
EV/EBITDA 6.69
EPS(TTM)-0.1
EYN/A
EPS(NY)0.13
Fwd EY37.26%
FCF(TTM)-0.2
FCFYN/A
OCF(TTM)0.11
OCFY31.25%
SpS0.51
BVpS0.81
TBVpS0.81
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -5.04%
ROE -13.32%
ROCE 4.89%
ROIC 3.52%
ROICexc 3.67%
ROICexgc 3.67%
OM 18.07%
PM (TTM) N/A
GM 30.4%
FCFM N/A
ROA(3y)3.47%
ROA(5y)1.24%
ROE(3y)5.39%
ROE(5y)1.78%
ROIC(3y)8.85%
ROIC(5y)N/A
ROICexc(3y)9.42%
ROICexc(5y)N/A
ROICexgc(3y)9.87%
ROICexgc(5y)N/A
ROCE(3y)12.3%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-5.22%
ROICexc growth 3YN/A
ROICexc growth 5Y-4.14%
OM growth 3YN/A
OM growth 5Y2.86%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y3.15%
F-Score3
Asset Turnover0.24
Health
Industry RankSector Rank
Debt/Equity 0.78
Debt/FCF N/A
Debt/EBITDA 4.23
Cap/Depr 551.8%
Cap/Sales 60.7%
Interest Coverage 2
Cash Conversion 73.19%
Profit Quality N/A
Current Ratio 1.38
Quick Ratio 0.89
Altman-Z 0.58
F-Score3
WACC11.96%
ROIC/WACC0.29
Cap/Depr(3y)434.31%
Cap/Depr(5y)285.03%
Cap/Sales(3y)55.52%
Cap/Sales(5y)41.55%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-240%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-100%
EPS Next Y140.4%
EPS Next 2Y95.4%
EPS Next 3Y44.39%
EPS Next 5YN/A
Revenue 1Y (TTM)-11.81%
Revenue growth 3Y12.28%
Revenue growth 5Y0.13%
Sales Q2Q%-22.14%
Revenue Next Year-10.71%
Revenue Next 2Y6.43%
Revenue Next 3Y-1.55%
Revenue Next 5YN/A
EBIT growth 1Y-34.05%
EBIT growth 3YN/A
EBIT growth 5Y3%
EBIT Next Year-19.07%
EBIT Next 3Y-3.55%
EBIT Next 5YN/A
FCF growth 1Y-2550.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-72.06%
OCF growth 3YN/A
OCF growth 5Y7.03%