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LUNDIN MINING CORP (LUN.CA) Stock Fundamental Analysis

TSX:LUN - Toronto Stock Exchange - CA5503721063 - Common Stock - Currency: CAD

12.23  +0.25 (+2.09%)

Fundamental Rating

5

Overall LUN gets a fundamental rating of 5 out of 10. We evaluated LUN against 832 industry peers in the Metals & Mining industry. LUN scores excellent on profitability, but there are concerns on its financial health. LUN is valued quite cheap, while showing a decent growth score. This is a good combination!


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year LUN was profitable.
LUN had a positive operating cash flow in the past year.
Each year in the past 5 years LUN has been profitable.
Each year in the past 5 years LUN had a positive operating cash flow.
LUN.CA Yearly Net Income VS EBIT VS OCF VS FCFLUN.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 500M -500M 1B

1.2 Ratios

The Return On Assets of LUN (2.49%) is better than 88.49% of its industry peers.
LUN has a better Return On Equity (5.48%) than 90.36% of its industry peers.
The Return On Invested Capital of LUN (5.84%) is better than 92.91% of its industry peers.
LUN had an Average Return On Invested Capital over the past 3 years of 7.47%. This is below the industry average of 11.94%.
Industry RankSector Rank
ROA 2.49%
ROE 5.48%
ROIC 5.84%
ROA(3y)5.89%
ROA(5y)4.5%
ROE(3y)10.4%
ROE(5y)7.98%
ROIC(3y)7.47%
ROIC(5y)5.97%
LUN.CA Yearly ROA, ROE, ROICLUN.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 -20

1.3 Margins

The Profit Margin of LUN (6.63%) is better than 92.24% of its industry peers.
LUN's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 19.99%, LUN belongs to the best of the industry, outperforming 92.91% of the companies in the same industry.
In the last couple of years the Operating Margin of LUN has declined.
The Gross Margin of LUN (22.77%) is better than 88.49% of its industry peers.
In the last couple of years the Gross Margin of LUN has declined.
Industry RankSector Rank
OM 19.99%
PM (TTM) 6.63%
GM 22.77%
OM growth 3Y-6.88%
OM growth 5Y-2.09%
PM growth 3Y-4.86%
PM growth 5Y-8.91%
GM growth 3Y-7.63%
GM growth 5Y-5.34%
LUN.CA Yearly Profit, Operating, Gross MarginsLUN.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LUN is destroying value.
The number of shares outstanding for LUN has been increased compared to 1 year ago.
LUN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, LUN has a worse debt to assets ratio.
LUN.CA Yearly Shares OutstandingLUN.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M
LUN.CA Yearly Total Debt VS Total AssetsLUN.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

Based on the Altman-Z score of 1.41, we must say that LUN is in the distress zone and has some risk of bankruptcy.
LUN's Altman-Z score of 1.41 is in line compared to the rest of the industry. LUN outperforms 49.80% of its industry peers.
The Debt to FCF ratio of LUN is 9.29, which is on the high side as it means it would take LUN, 9.29 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LUN (9.29) is better than 90.23% of its industry peers.
LUN has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
LUN has a worse Debt to Equity ratio (0.34) than 76.57% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.34
Debt/FCF 9.29
Altman-Z 1.41
ROIC/WACC0.6
WACC9.68%
LUN.CA Yearly LT Debt VS Equity VS FCFLUN.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B 4B

2.3 Liquidity

LUN has a Current Ratio of 1.40. This is a normal value and indicates that LUN is financially healthy and should not expect problems in meeting its short term obligations.
LUN has a Current ratio (1.40) which is in line with its industry peers.
A Quick Ratio of 0.96 indicates that LUN may have some problems paying its short term obligations.
With a Quick ratio value of 0.96, LUN is not doing good in the industry: 60.78% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.4
Quick Ratio 0.96
LUN.CA Yearly Current Assets VS Current LiabilitesLUN.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

5

3. Growth

3.1 Past

LUN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.81%.
LUN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.85% yearly.
Looking at the last year, LUN shows a very strong growth in Revenue. The Revenue has grown by 32.13%.
Measured over the past years, LUN shows a quite strong growth in Revenue. The Revenue has been growing by 14.47% on average per year.
EPS 1Y (TTM)-24.81%
EPS 3Y9.14%
EPS 5Y6.85%
EPS Q2Q%-18.18%
Revenue 1Y (TTM)32.13%
Revenue growth 3Y18.44%
Revenue growth 5Y14.47%
Sales Q2Q%8.14%

3.2 Future

The Earnings Per Share is expected to grow by 15.68% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.89% on average over the next years.
EPS Next Y25.84%
EPS Next 2Y19.74%
EPS Next 3Y19.43%
EPS Next 5Y15.68%
Revenue Next Year26.01%
Revenue Next 2Y9.57%
Revenue Next 3Y8.37%
Revenue Next 5Y2.89%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
LUN.CA Yearly Revenue VS EstimatesLUN.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B 4B
LUN.CA Yearly EPS VS EstimatesLUN.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 0.2 0.4 0.6 0.8 1

7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 21.09, which indicates a rather expensive current valuation of LUN.
Based on the Price/Earnings ratio, LUN is valued cheaply inside the industry as 89.56% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LUN to the average of the S&P500 Index (28.12), we can say LUN is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.24, which indicates a correct valuation of LUN.
Based on the Price/Forward Earnings ratio, LUN is valued cheaply inside the industry as 89.96% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LUN to the average of the S&P500 Index (94.77), we can say LUN is valued rather cheaply.
Industry RankSector Rank
PE 21.09
Fwd PE 15.24
LUN.CA Price Earnings VS Forward Price EarningsLUN.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, LUN is valued cheaper than 94.91% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LUN is valued cheaply inside the industry as 92.24% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 29.43
EV/EBITDA 4.91
LUN.CA Per share dataLUN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

LUN'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 LUN may justify a higher PE ratio.
A more expensive valuation may be justified as LUN's earnings are expected to grow with 19.43% in the coming years.
PEG (NY)0.82
PEG (5Y)3.08
EPS Next 2Y19.74%
EPS Next 3Y19.43%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.01%, LUN has a reasonable but not impressive dividend return.
LUN's Dividend Yield is rather good when compared to the industry average which is at 7.68. LUN pays more dividend than 97.99% of the companies in the same industry.
LUN's Dividend Yield is a higher than the S&P500 average which is at 2.29.
Industry RankSector Rank
Dividend Yield 3.01%

5.2 History

The dividend of LUN is nicely growing with an annual growth rate of 23.93%!
LUN has been paying a dividend for over 5 years, so it has already some track record.
LUN has decreased its dividend recently.
Dividend Growth(5Y)23.93%
Div Incr Years1
Div Non Decr Years1
LUN.CA Yearly Dividends per shareLUN.CA Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 0.1 0.2 0.3 0.4

5.3 Sustainability

LUN pays out 74.43% of its income as dividend. This is not a sustainable payout ratio.
LUN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP74.43%
EPS Next 2Y19.74%
EPS Next 3Y19.43%
LUN.CA Yearly Income VS Free CF VS DividendLUN.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M
LUN.CA Dividend Payout.LUN.CA Dividend Payout, showing the Payout Ratio.LUN.CA Dividend Payout.PayoutRetained Earnings

LUNDIN MINING CORP

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

12.23

+0.25 (+2.09%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)02-19 2025-02-19/amc
Inst Owners57.85%
Inst Owner ChangeN/A
Ins Owners0.3%
Ins Owner ChangeN/A
Market Cap9.50B
Analysts76.15
Price Target16.72 (36.71%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.01%
Yearly Dividend0.27
Dividend Growth(5Y)23.93%
DP74.43%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-31.13%
Min EPS beat(2)-45.6%
Max EPS beat(2)-16.67%
EPS beat(4)0
Avg EPS beat(4)-27.06%
Min EPS beat(4)-45.6%
Max EPS beat(4)-16.67%
EPS beat(8)2
Avg EPS beat(8)-4.57%
EPS beat(12)4
Avg EPS beat(12)-16.55%
EPS beat(16)6
Avg EPS beat(16)-10.16%
Revenue beat(2)0
Avg Revenue beat(2)-5.9%
Min Revenue beat(2)-6.43%
Max Revenue beat(2)-5.38%
Revenue beat(4)0
Avg Revenue beat(4)-3.28%
Min Revenue beat(4)-6.43%
Max Revenue beat(4)-0.39%
Revenue beat(8)2
Avg Revenue beat(8)-3.01%
Revenue beat(12)4
Avg Revenue beat(12)-3.95%
Revenue beat(16)6
Avg Revenue beat(16)-2.28%
PT rev (1m)-5.4%
PT rev (3m)-3.95%
EPS NQ rev (1m)-21.93%
EPS NQ rev (3m)5.87%
EPS NY rev (1m)-12.22%
EPS NY rev (3m)-21.13%
Revenue NQ rev (1m)-6.55%
Revenue NQ rev (3m)9.5%
Revenue NY rev (1m)-2.07%
Revenue NY rev (3m)-2.38%
Valuation
Industry RankSector Rank
PE 21.09
Fwd PE 15.24
P/S 1.59
P/FCF 29.43
P/OCF 5.5
P/B 1.32
P/tB 1.4
EV/EBITDA 4.91
EPS(TTM)0.58
EY4.74%
EPS(NY)0.8
Fwd EY6.56%
FCF(TTM)0.42
FCFY3.4%
OCF(TTM)2.22
OCFY18.19%
SpS7.67
BVpS9.28
TBVpS8.76
PEG (NY)0.82
PEG (5Y)3.08
Profitability
Industry RankSector Rank
ROA 2.49%
ROE 5.48%
ROCE 8.54%
ROIC 5.84%
ROICexc 6.06%
ROICexgc 6.24%
OM 19.99%
PM (TTM) 6.63%
GM 22.77%
FCFM 5.42%
ROA(3y)5.89%
ROA(5y)4.5%
ROE(3y)10.4%
ROE(5y)7.98%
ROIC(3y)7.47%
ROIC(5y)5.97%
ROICexc(3y)7.96%
ROICexc(5y)6.31%
ROICexgc(3y)8.27%
ROICexgc(5y)6.56%
ROCE(3y)10.93%
ROCE(5y)8.74%
ROICexcg growth 3Y-3.57%
ROICexcg growth 5Y-2.57%
ROICexc growth 3Y-3.27%
ROICexc growth 5Y-2.71%
OM growth 3Y-6.88%
OM growth 5Y-2.09%
PM growth 3Y-4.86%
PM growth 5Y-8.91%
GM growth 3Y-7.63%
GM growth 5Y-5.34%
F-Score7
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 0.34
Debt/FCF 9.29
Debt/EBITDA 1.04
Cap/Depr 121.66%
Cap/Sales 23.59%
Interest Coverage 6.65
Cash Conversion 73.66%
Profit Quality 81.69%
Current Ratio 1.4
Quick Ratio 0.96
Altman-Z 1.41
F-Score7
WACC9.68%
ROIC/WACC0.6
Cap/Depr(3y)136.25%
Cap/Depr(5y)135.48%
Cap/Sales(3y)24.52%
Cap/Sales(5y)25.97%
Profit Quality(3y)43.84%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-24.81%
EPS 3Y9.14%
EPS 5Y6.85%
EPS Q2Q%-18.18%
EPS Next Y25.84%
EPS Next 2Y19.74%
EPS Next 3Y19.43%
EPS Next 5Y15.68%
Revenue 1Y (TTM)32.13%
Revenue growth 3Y18.44%
Revenue growth 5Y14.47%
Sales Q2Q%8.14%
Revenue Next Year26.01%
Revenue Next 2Y9.57%
Revenue Next 3Y8.37%
Revenue Next 5Y2.89%
EBIT growth 1Y46.12%
EBIT growth 3Y10.29%
EBIT growth 5Y12.08%
EBIT Next Year192.21%
EBIT Next 3Y53.16%
EBIT Next 5Y24.36%
FCF growth 1Y-42.1%
FCF growth 3Y-70.4%
FCF growth 5YN/A
OCF growth 1Y9.1%
OCF growth 3Y21.56%
OCF growth 5Y16.37%