LUNDIN GOLD INC (LUG.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:LUG - CA5503711080 - Common Stock
122.97 CAD
+4.74 (+4.01%)
Overall LUG gets a fundamental rating of 7 out of 10. We evaluated LUG against 820 industry peers in the Metals & Mining industry. LUG gets an excellent profitability rating and is at the same time showing great financial health properties. LUG may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make LUG a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
- In the past year LUG was profitable.
- In the past year LUG had a positive cash flow from operations.
- LUG had positive earnings in 4 of the past 5 years.
- LUG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 41.91%, LUG belongs to the top of the industry, outperforming 98.17% of the companies in the same industry.
- LUG has a Return On Equity of 51.96%. This is amongst the best in the industry. LUG outperforms 98.41% of its industry peers.
- LUG's Return On Invested Capital of 45.27% is amongst the best of the industry. LUG outperforms 99.88% of its industry peers.
- LUG had an Average Return On Invested Capital over the past 3 years of 22.93%. This is significantly above the industry average of 12.04%.
- The last Return On Invested Capital (45.27%) for LUG is above the 3 year average (22.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 41.91% | ||
| ROE | 51.96% | ||
| ROIC | 45.27% |
ROA(3y)14.84%
ROA(5y)10.91%
ROE(3y)20.81%
ROE(5y)16.32%
ROIC(3y)22.93%
ROIC(5y)18.45%
1.3 Margins
- Looking at the Profit Margin, with a value of 42.98%, LUG belongs to the top of the industry, outperforming 97.93% of the companies in the same industry.
- LUG's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 60.07%, LUG belongs to the best of the industry, outperforming 99.15% of the companies in the same industry.
- LUG's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 66.84%, LUG belongs to the top of the industry, outperforming 97.68% of the companies in the same industry.
- In the last couple of years the Gross Margin of LUG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 60.07% | ||
| PM (TTM) | 42.98% | ||
| GM | 66.84% |
OM growth 3Y5.36%
OM growth 5YN/A
PM growth 3Y5.75%
PM growth 5YN/A
GM growth 3Y6.72%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LUG is creating value.
- The number of shares outstanding for LUG has been increased compared to 1 year ago.
- Compared to 5 years ago, LUG has more shares outstanding
- LUG 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
- LUG has an Altman-Z score of 42.98. This indicates that LUG is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 42.98, LUG is doing good in the industry, outperforming 79.51% of the companies in the same industry.
- There is no outstanding debt for LUG. 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 | 42.98 |
ROIC/WACC4.39
WACC10.31%
2.3 Liquidity
- A Current Ratio of 3.23 indicates that LUG has no problem at all paying its short term obligations.
- With a decent Current ratio value of 3.23, LUG is doing good in the industry, outperforming 63.90% of the companies in the same industry.
- A Quick Ratio of 2.88 indicates that LUG has no problem at all paying its short term obligations.
- The Quick ratio of LUG (2.88) is better than 62.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.23 | ||
| Quick Ratio | 2.88 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 111.11% over the past year.
- LUG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.19% yearly.
- Looking at the last year, LUG shows a very strong growth in Revenue. The Revenue has grown by 53.38%.
- Measured over the past years, LUG shows a quite strong growth in Revenue. The Revenue has been growing by 17.61% on average per year.
EPS 1Y (TTM)111.11%
EPS 3Y18.19%
EPS 5YN/A
EPS Q2Q%53.57%
Revenue 1Y (TTM)53.38%
Revenue growth 3Y17.61%
Revenue growth 5YN/A
Sales Q2Q%38.39%
3.2 Future
- The Earnings Per Share is expected to grow by 3.31% on average over the next years.
- Based on estimates for the next years, LUG will show a small growth in Revenue. The Revenue will grow by 4.41% on average per year.
EPS Next Y83.73%
EPS Next 2Y46.03%
EPS Next 3Y28.29%
EPS Next 5Y3.31%
Revenue Next Year45.74%
Revenue Next 2Y29.87%
Revenue Next 3Y18.58%
Revenue Next 5Y4.41%
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.
- 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
- The Price/Earnings ratio is 31.45, which means the current valuation is very expensive for LUG.
- Based on the Price/Earnings ratio, LUG is valued cheaply inside the industry as 91.34% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, LUG is valued at the same level.
- With a Price/Forward Earnings ratio of 24.03, LUG is valued on the expensive side.
- LUG's Price/Forward Earnings ratio is rather cheap when compared to the industry. LUG is cheaper than 89.88% of the companies in the same industry.
- LUG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.45 | ||
| Fwd PE | 24.03 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LUG indicates a rather cheap valuation: LUG is cheaper than 92.56% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LUG indicates a rather cheap valuation: LUG is cheaper than 95.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.82 | ||
| EV/EBITDA | 18.58 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- LUG has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as LUG's earnings are expected to grow with 28.29% in the coming years.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y46.03%
EPS Next 3Y28.29%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.40%, LUG has a reasonable but not impressive dividend return.
- LUG's Dividend Yield is rather good when compared to the industry average which is at 0.56. LUG pays more dividend than 97.80% of the companies in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.82, LUG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
5.2 History
- LUG has been paying a dividend for less than 5 years, so it still needs to build a track record.
- LUG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- LUG pays out 75.50% of its income as dividend. This is not a sustainable payout ratio.
DP75.5%
EPS Next 2Y46.03%
EPS Next 3Y28.29%
LUNDIN GOLD INC / LUG.CA FAQ
What is the ChartMill fundamental rating of LUNDIN GOLD INC (LUG.CA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to LUG.CA.
What is the valuation status for LUG stock?
ChartMill assigns a valuation rating of 7 / 10 to LUNDIN GOLD INC (LUG.CA). This can be considered as Undervalued.
What is the profitability of LUG stock?
LUNDIN GOLD INC (LUG.CA) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for LUG stock?
The Price/Earnings (PE) ratio for LUNDIN GOLD INC (LUG.CA) is 31.45 and the Price/Book (PB) ratio is 16.38.
What is the earnings growth outlook for LUNDIN GOLD INC?
The Earnings per Share (EPS) of LUNDIN GOLD INC (LUG.CA) is expected to grow by 83.73% in the next year.