LUCARA DIAMOND CORP (LUC.CA) Stock Fundamental Analysis
TSX:LUC - Toronto Stock Exchange - CA54928Q1081 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to LUC. LUC was compared to 808 industry peers in the Metals & Mining industry. While LUC has a great profitability rating, there are quite some concerns on its financial health. LUC is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year LUC was profitable.
In the past year LUC had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: LUC reported negative net income in multiple years.
Of the past 5 years LUC 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.96%, LUC belongs to the top of the industry, outperforming 91.09% of the companies in the same industry.
LUC has a Return On Equity of 17.18%. This is amongst the best in the industry. LUC outperforms 93.94% of its industry peers.
The Return On Invested Capital of LUC (7.24%) is better than 92.70% of its industry peers.
LUC had an Average Return On Invested Capital over the past 3 years of 8.11%. This is below the industry average of 12.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.96% | ||
| ROE | 17.18% | ||
| ROIC | 7.24% |
ROA(3y)3.56%
ROA(5y)1.72%
ROE(3y)7.1%
ROE(5y)3.65%
ROIC(3y)8.11%
ROIC(5y)N/A
1.3 Margins
LUC's Profit Margin of 24.50% is amongst the best of the industry. LUC outperforms 96.16% of its industry peers.
In the last couple of years the Profit Margin of LUC has grown nicely.
With an excellent Operating Margin value of 32.20%, LUC belongs to the best of the industry, outperforming 94.80% of the companies in the same industry.
LUC's Operating Margin has improved in the last couple of years.
LUC has a Gross Margin of 41.68%. This is amongst the best in the industry. LUC outperforms 93.94% of its industry peers.
In the last couple of years the Gross Margin of LUC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.2% | ||
| PM (TTM) | 24.5% | ||
| GM | 41.68% |
OM growth 3Y11.78%
OM growth 5Y23.36%
PM growth 3Y23.69%
PM growth 5Y24.3%
GM growth 3Y8.27%
GM growth 5Y12.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LUC is destroying value.
LUC has less shares outstanding than it did 1 year ago.
LUC has more shares outstanding than it did 5 years ago.
LUC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.79, we must say that LUC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.79, LUC perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
LUC has a Debt/Equity ratio of 0.75. This is a neutral value indicating LUC is somewhat dependend on debt financing.
LUC has a Debt to Equity ratio of 0.75. This is in the lower half of the industry: LUC underperforms 74.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.79 |
ROIC/WACC0.71
WACC10.13%
2.3 Liquidity
A Current Ratio of 1.29 indicates that LUC should not have too much problems paying its short term obligations.
LUC's Current ratio of 1.29 is in line compared to the rest of the industry. LUC outperforms 46.41% of its industry peers.
A Quick Ratio of 0.70 indicates that LUC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.70, LUC is doing worse than 62.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
LUC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 242.86%, which is quite impressive.
The Earnings Per Share has been growing by 21.67% on average over the past years. This is a very strong growth
The Revenue has grown by 11.84% in the past year. This is quite good.
The Revenue has been growing slightly by 1.15% on average over the past years.
EPS 1Y (TTM)242.86%
EPS 3Y16.96%
EPS 5Y21.67%
EPS Q2Q%100%
Revenue 1Y (TTM)11.84%
Revenue growth 3Y-3.95%
Revenue growth 5Y1.15%
Sales Q2Q%-23.3%
3.2 Future
The Earnings Per Share is expected to decrease by -20.55% on average over the next years. This is quite bad
Based on estimates for the next years, LUC will show a small growth in Revenue. The Revenue will grow by 3.37% on average per year.
EPS Next Y13.62%
EPS Next 2Y-20.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year26.86%
Revenue Next 2Y3.37%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 1.68, the valuation of LUC can be described as very cheap.
Based on the Price/Earnings ratio, LUC is valued cheaply inside the industry as 99.13% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.28, LUC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 3.41, the valuation of LUC can be described as very cheap.
98.02% of the companies in the same industry are more expensive than LUC, based on the Price/Forward Earnings ratio.
LUC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.68 | ||
| Fwd PE | 3.41 |
4.2 Price Multiples
96.66% of the companies in the same industry are more expensive than LUC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.8 |
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.
LUC has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as LUC's earnings are expected to decrease with -20.55% in the coming years.
PEG (NY)0.12
PEG (5Y)0.08
EPS Next 2Y-20.55%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LUC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:LUC (7/2/2025, 7:00:00 PM)
0.235
+0.01 (+4.44%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners14.57%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap106.44M
Analysts45.71
Price Target0.41 (74.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)246.54%
Min EPS beat(2)-100%
Max EPS beat(2)593.07%
EPS beat(4)1
Avg EPS beat(4)91.83%
Min EPS beat(4)-100%
Max EPS beat(4)593.07%
EPS beat(8)1
Avg EPS beat(8)-35.02%
EPS beat(12)2
Avg EPS beat(12)-26.43%
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)-20%
PT rev (3m)-20%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-300%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.68 | ||
| Fwd PE | 3.41 | ||
| P/S | 0.4 | ||
| P/FCF | N/A | ||
| P/OCF | 1.2 | ||
| P/B | 0.28 | ||
| P/tB | 0.28 | ||
| EV/EBITDA | 3.8 |
EPS(TTM)0.14
EY59.57%
EPS(NY)0.07
Fwd EY29.32%
FCF(TTM)-0.1
FCFYN/A
OCF(TTM)0.2
OCFY83.56%
SpS0.59
BVpS0.84
TBVpS0.84
PEG (NY)0.12
PEG (5Y)0.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.96% | ||
| ROE | 17.18% | ||
| ROCE | 10.05% | ||
| ROIC | 7.24% | ||
| ROICexc | 7.46% | ||
| ROICexgc | 7.46% | ||
| OM | 32.2% | ||
| PM (TTM) | 24.5% | ||
| GM | 41.68% | ||
| FCFM | N/A |
ROA(3y)3.56%
ROA(5y)1.72%
ROE(3y)7.1%
ROE(5y)3.65%
ROIC(3y)8.11%
ROIC(5y)N/A
ROICexc(3y)8.49%
ROICexc(5y)N/A
ROICexgc(3y)8.69%
ROICexgc(5y)N/A
ROCE(3y)11.26%
ROCE(5y)N/A
ROICexcg growth 3Y-12.44%
ROICexcg growth 5Y8.81%
ROICexc growth 3Y-10.55%
ROICexc growth 5Y10.47%
OM growth 3Y11.78%
OM growth 5Y23.36%
PM growth 3Y23.69%
PM growth 5Y24.3%
GM growth 3Y8.27%
GM growth 5Y12.42%
F-Score6
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.66 | ||
| Cap/Depr | 613.94% | ||
| Cap/Sales | 50.6% | ||
| Interest Coverage | 2.89 | ||
| Cash Conversion | 82.79% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 0.79 |
F-Score6
WACC10.13%
ROIC/WACC0.71
Cap/Depr(3y)553.57%
Cap/Depr(5y)384.43%
Cap/Sales(3y)57.57%
Cap/Sales(5y)48.44%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)242.86%
EPS 3Y16.96%
EPS 5Y21.67%
EPS Q2Q%100%
EPS Next Y13.62%
EPS Next 2Y-20.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.84%
Revenue growth 3Y-3.95%
Revenue growth 5Y1.15%
Sales Q2Q%-23.3%
Revenue Next Year26.86%
Revenue Next 2Y3.37%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y80.95%
EBIT growth 3Y7.36%
EBIT growth 5Y24.79%
EBIT Next Year4.76%
EBIT Next 3Y-2.77%
EBIT Next 5YN/A
FCF growth 1Y23.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-24.04%
OCF growth 3Y-12.28%
OCF growth 5Y2.36%