Lucara Diamond Corp. Fundamental Analysis (TSX: LUC.TO)
Lucara Diamond Corp. Fundamental Analysis (TSX: LUC.TO)
Lucara Diamond Corp. (TSX: LUC.TO) shows moderate financial fundamentals with a PE ratio of 3.70, profit margin of 10.15%, and ROE of 4.15%. The company generates $0.1B in annual revenue with weak year-over-year growth of -20.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 12.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LUC.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakLUC.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLUC.TO trades at attractive valuation levels.
Growth Score
WeakLUC.TO faces weak or negative growth trends.
Financial Health Score
ExcellentLUC.TO maintains a strong and stable balance sheet.
Profitability Score
WeakLUC.TO struggles to sustain strong margins.
Key Financial Metrics
Is LUC.TO Expensive or Cheap?
P/E Ratio
LUC.TO trades at 3.70 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LUC.TO's PEG of -0.07 indicates potential undervaluation.
Price to Book
The market values Lucara Diamond Corp. at 0.32 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -4.70 times EBITDA. This is generally considered low.
How Well Does LUC.TO Make Money?
Net Profit Margin
For every $100 in sales, Lucara Diamond Corp. keeps $10.15 as profit after all expenses.
Operating Margin
Core operations generate 11.98 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.15 in profit for every $100 of shareholder equity.
ROA
Lucara Diamond Corp. generates $1.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Lucara Diamond Corp. generates strong operating cash flow of $17.32M, reflecting robust business health.
Free Cash Flow
Lucara Diamond Corp. generates weak or negative free cash flow of $-34.88M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.08 in free cash annually.
FCF Yield
LUC.TO converts -1.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
3.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.91
vs 25 benchmark
Current Ratio
Current assets to current liabilities
9.89
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How LUC.TO Stacks Against Its Sector Peers
| Metric | LUC.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 3.70 | 27.26 | Better (Cheaper) |
| ROE | 4.15% | 1196.00% | Weak |
| Net Margin | 10.15% | 224.00% | Weak |
| Debt/Equity | 0.91 | 0.73 | Weak (High Leverage) |
| Current Ratio | 9.89 | 3.13 | Strong Liquidity |
| ROA | 1.51% | 2757.00% | Weak |
LUC.TO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Lucara Diamond Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
13.38%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
188.40%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
3250.24%
Industry Style: Cyclical, Commodity, Value
High Growth