Labrador Iron Ore Royalty Corporation Fundamental Analysis
Labrador Iron Ore Royalty Corporation (LIFZF) shows moderate financial fundamentals with a PE ratio of 19.04, profit margin of 55.72%, and ROE of 14.38%. The company generates $0.2B in annual revenue with weak year-over-year growth of -20.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LIFZF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentLIFZF demonstrates superior asset utilization.
Valuation Score
ExcellentLIFZF trades at attractive valuation levels.
Growth Score
WeakLIFZF faces weak or negative growth trends.
Financial Health Score
ExcellentLIFZF maintains a strong and stable balance sheet.
Profitability Score
ModerateLIFZF maintains healthy but balanced margins.
Key Financial Metrics
Is LIFZF Expensive or Cheap?
P/E Ratio
LIFZF trades at 19.04 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LIFZF's PEG of -0.42 indicates potential undervaluation.
Price to Book
The market values Labrador Iron Ore Royalty Corporation at 2.75 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.63 times EBITDA. This signals the market has high growth expectations.
How Well Does LIFZF Make Money?
Net Profit Margin
For every $100 in sales, Labrador Iron Ore Royalty Corporation keeps $55.72 as profit after all expenses.
Operating Margin
Core operations generate 74.82 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.38 in profit for every $100 of shareholder equity.
ROA
Labrador Iron Ore Royalty Corporation generates $11.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Labrador Iron Ore Royalty Corporation generates strong operating cash flow of $95.54M, reflecting robust business health.
Free Cash Flow
Labrador Iron Ore Royalty Corporation generates strong free cash flow of $95.54M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.49 in free cash annually.
FCF Yield
LIFZF converts 5.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.008
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How LIFZF Stacks Against Its Sector Peers
| Metric | LIFZF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.04 | 25.01 | Better (Cheaper) |
| ROE | 14.38% | 1002.00% | Weak |
| Net Margin | 55.72% | -107149.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.38 | Strong (Low Leverage) |
| Current Ratio | 2.01 | 6.20 | Strong Liquidity |
| ROA | 11.56% | -5669.00% (disorted) | Strong |
LIFZF outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Labrador Iron Ore Royalty Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-17.85%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
-55.73%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-44.67%
Industry Style: Cyclical, Commodity, Value
Declining