Lucara Diamond Corp.
Lucara Diamond Corp. Fundamental Analysis
Lucara Diamond Corp. (LUCRF) shows strong financial fundamentals with a PE ratio of 1.63, profit margin of 27.80%, and ROE of 19.69%. The company generates $0.2B in annual revenue with strong year-over-year growth of 18.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze LUCRF's fundamental strength across five key dimensions:
Efficiency Score
WeakLUCRF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLUCRF trades at attractive valuation levels.
Growth Score
ModerateLUCRF shows steady but slowing expansion.
Financial Health Score
ModerateLUCRF shows balanced financial health with some risks.
Profitability Score
ModerateLUCRF maintains healthy but balanced margins.
Key Financial Metrics
Is LUCRF Expensive or Cheap?
P/E Ratio
LUCRF trades at 1.63 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LUCRF's PEG of 0.18 indicates potential undervaluation.
Price to Book
The market values Lucara Diamond Corp. at 0.30 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.02 times EBITDA. This is generally considered low.
How Well Does LUCRF Make Money?
Net Profit Margin
For every $100 in sales, Lucara Diamond Corp. keeps $27.80 as profit after all expenses.
Operating Margin
Core operations generate 39.68 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.69 in profit for every $100 of shareholder equity.
ROA
Lucara Diamond Corp. generates $7.66 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 $68.11M, reflecting robust business health.
Free Cash Flow
Lucara Diamond Corp. generates weak or negative free cash flow of $-93.54M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.21 in free cash annually.
FCF Yield
LUCRF converts -1.01% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How LUCRF Stacks Against Its Sector Peers
| Metric | LUCRF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.63 | 27.21 | Better (Cheaper) |
| ROE | 19.69% | 861.00% | Weak |
| Net Margin | 27.80% | -120577.00% (disorted) | Strong |
| Debt/Equity | 0.09 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 0.38 | 4.82 | Weak Liquidity |
| ROA | 7.66% | -7640.00% (disorted) | Weak |
LUCRF outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, 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
-4.00%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
184.54%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
1.90%
Industry Style: Cyclical, Commodity, Value
Growing