LUNDIN GOLD INC (LUG.CA) Stock Fundamental Analysis
TSX:LUG - Toronto Stock Exchange - CA5503711080 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to LUG. LUG was compared to 796 industry peers in the Metals & Mining industry. LUG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LUG has a correct valuation and a medium growth rate. These ratings would make LUG suitable for quality investing!
1. Profitability
1.1 Basic Checks
LUG had positive earnings in the past year.
LUG had a positive operating cash flow in the past year.
Of the past 5 years LUG 4 years were profitable.
LUG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LUG has a better Return On Assets (33.32%) than 97.99% of its industry peers.
Looking at the Return On Equity, with a value of 41.30%, LUG belongs to the top of the industry, outperforming 98.12% of the companies in the same industry.
With an excellent Return On Invested Capital value of 34.97%, LUG belongs to the best of the industry, outperforming 99.75% of the companies in the same industry.
LUG had an Average Return On Invested Capital over the past 3 years of 22.93%. This is in line with the industry average of 24.80%.
The 3 year average ROIC (22.93%) for LUG is below the current ROIC(34.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 33.32% | ||
| ROE | 41.3% | ||
| ROIC | 34.97% |
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 40.65%, LUG belongs to the top of the industry, outperforming 97.61% of the companies in the same industry.
LUG's Profit Margin has improved in the last couple of years.
The Operating Margin of LUG (56.24%) is better than 99.25% of its industry peers.
LUG's Operating Margin has improved in the last couple of years.
LUG's Gross Margin of 62.28% is amongst the best of the industry. LUG outperforms 97.49% of its industry peers.
In the last couple of years the Gross Margin of LUG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 56.24% | ||
| PM (TTM) | 40.65% | ||
| GM | 62.28% |
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.
LUG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for LUG has been increased compared to 5 years ago.
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.
2.2 Solvency
An Altman-Z score of 24.72 indicates that LUG is not in any danger for bankruptcy at the moment.
The Altman-Z score of LUG (24.72) is better than 82.54% of its industry peers.
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 | 24.72 |
ROIC/WACC3.46
WACC10.12%
2.3 Liquidity
LUG has a Current Ratio of 3.40. This indicates that LUG is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.40, LUG is in the better half of the industry, outperforming 66.46% of the companies in the same industry.
A Quick Ratio of 3.02 indicates that LUG has no problem at all paying its short term obligations.
LUG has a better Quick ratio (3.02) than 65.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.4 | ||
| Quick Ratio | 3.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 162.20% over the past year.
The Earnings Per Share has been growing by 18.19% on average over the past years. This is quite good.
Looking at the last year, LUG shows a very strong growth in Revenue. The Revenue has grown by 51.59%.
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)162.2%
EPS 3Y18.19%
EPS 5YN/A
EPS Q2Q%166.67%
Revenue 1Y (TTM)51.59%
Revenue growth 3Y17.61%
Revenue growth 5YN/A
Sales Q2Q%57.16%
3.2 Future
LUG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.85% yearly.
The Revenue is expected to grow by 7.04% on average over the next years.
EPS Next Y25.57%
EPS Next 2Y11.18%
EPS Next 3Y4.36%
EPS Next 5Y-2.85%
Revenue Next Year18.36%
Revenue Next 2Y9.02%
Revenue Next 3Y3.69%
Revenue Next 5Y7.04%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.76, which indicates a rather expensive current valuation of LUG.
Based on the Price/Earnings ratio, LUG is valued cheaply inside the industry as 88.94% of the companies are valued more expensively.
LUG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.91.
A Price/Forward Earnings ratio of 21.63 indicates a rather expensive valuation of LUG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LUG indicates a rather cheap valuation: LUG is cheaper than 88.44% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LUG to the average of the S&P500 Index (21.77), we can say LUG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.76 | ||
| Fwd PE | 21.63 |
4.2 Price Multiples
90.83% of the companies in the same industry are more expensive than LUG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LUG is valued cheaply inside the industry as 94.10% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.03 | ||
| EV/EBITDA | 12.17 |
4.3 Compensation for Growth
LUG's 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.
PEG (NY)0.85
PEG (5Y)N/A
EPS Next 2Y11.18%
EPS Next 3Y4.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.24%, 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 2.70. LUG pays more dividend than 97.74% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, LUG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
LUG has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
LUG pays out 35.84% of its income as dividend. This is a sustainable payout ratio.
DP35.84%
EPS Next 2Y11.18%
EPS Next 3Y4.36%
TSX:LUG (5/26/2025, 7:00:00 PM)
64.18
+0.55 (+0.86%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners26.1%
Inst Owner ChangeN/A
Ins Owners0.74%
Ins Owner ChangeN/A
Market Cap15.46B
Analysts70.59
Price Target49.2 (-23.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Yearly Dividend0.83
Dividend Growth(5Y)N/A
DP35.84%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.09%
Min EPS beat(2)7.12%
Max EPS beat(2)9.06%
EPS beat(4)3
Avg EPS beat(4)6.85%
Min EPS beat(4)-3.41%
Max EPS beat(4)14.63%
EPS beat(8)4
Avg EPS beat(8)1.19%
EPS beat(12)4
Avg EPS beat(12)-9.74%
EPS beat(16)8
Avg EPS beat(16)2.11%
Revenue beat(2)2
Avg Revenue beat(2)2.76%
Min Revenue beat(2)1.66%
Max Revenue beat(2)3.87%
Revenue beat(4)4
Avg Revenue beat(4)3.07%
Min Revenue beat(4)0.36%
Max Revenue beat(4)6.4%
Revenue beat(8)5
Avg Revenue beat(8)2.36%
Revenue beat(12)7
Avg Revenue beat(12)3.74%
Revenue beat(16)10
Avg Revenue beat(16)4.43%
PT rev (1m)22.52%
PT rev (3m)26.73%
EPS NQ rev (1m)39.81%
EPS NQ rev (3m)46.84%
EPS NY rev (1m)0%
EPS NY rev (3m)7.58%
Revenue NQ rev (1m)13.92%
Revenue NQ rev (3m)12.93%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)4.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.76 | ||
| Fwd PE | 21.63 | ||
| P/S | 8.52 | ||
| P/FCF | 17.03 | ||
| P/OCF | 14.97 | ||
| P/B | 8.65 | ||
| P/tB | 8.65 | ||
| EV/EBITDA | 12.17 |
EPS(TTM)2.95
EY4.6%
EPS(NY)2.97
Fwd EY4.62%
FCF(TTM)3.77
FCFY5.87%
OCF(TTM)4.29
OCFY6.68%
SpS7.53
BVpS7.42
TBVpS7.42
PEG (NY)0.85
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 33.32% | ||
| ROE | 41.3% | ||
| ROCE | 53.74% | ||
| ROIC | 34.97% | ||
| ROICexc | 51.92% | ||
| ROICexgc | 51.92% | ||
| OM | 56.24% | ||
| PM (TTM) | 40.65% | ||
| GM | 62.28% | ||
| FCFM | 50.02% |
ROA(3y)14.84%
ROA(5y)10.91%
ROE(3y)20.81%
ROE(5y)16.32%
ROIC(3y)22.93%
ROIC(5y)18.45%
ROICexc(3y)30.94%
ROICexc(5y)24.1%
ROICexgc(3y)30.94%
ROICexgc(5y)24.1%
ROCE(3y)35.24%
ROCE(5y)28.35%
ROICexcg growth 3Y30%
ROICexcg growth 5YN/A
ROICexc growth 3Y30%
ROICexc growth 5YN/A
OM growth 3Y5.36%
OM growth 5YN/A
PM growth 3Y5.75%
PM growth 5YN/A
GM growth 3Y6.72%
GM growth 5YN/A
F-Score8
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 68.45% | ||
| Cap/Sales | 6.89% | ||
| Interest Coverage | 2.94 | ||
| Cash Conversion | 85.83% | ||
| Profit Quality | 123.05% | ||
| Current Ratio | 3.4 | ||
| Quick Ratio | 3.02 | ||
| Altman-Z | 24.72 |
F-Score8
WACC10.12%
ROIC/WACC3.46
Cap/Depr(3y)45.6%
Cap/Depr(5y)59.18%
Cap/Sales(3y)6.29%
Cap/Sales(5y)8.61%
Profit Quality(3y)302.21%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)162.2%
EPS 3Y18.19%
EPS 5YN/A
EPS Q2Q%166.67%
EPS Next Y25.57%
EPS Next 2Y11.18%
EPS Next 3Y4.36%
EPS Next 5Y-2.85%
Revenue 1Y (TTM)51.59%
Revenue growth 3Y17.61%
Revenue growth 5YN/A
Sales Q2Q%57.16%
Revenue Next Year18.36%
Revenue Next 2Y9.02%
Revenue Next 3Y3.69%
Revenue Next 5Y7.04%
EBIT growth 1Y103.23%
EBIT growth 3Y23.92%
EBIT growth 5YN/A
EBIT Next Year47.99%
EBIT Next 3Y12.28%
EBIT Next 5Y-3.34%
FCF growth 1Y68.03%
FCF growth 3Y17.41%
FCF growth 5YN/A
OCF growth 1Y69.82%
OCF growth 3Y16.84%
OCF growth 5YN/A