Lundin Gold Inc. Fundamental Analysis (TSX: LUG.TO)
Lundin Gold Inc. (TSX: LUG.TO) shows strong financial fundamentals with a PE ratio of 18.92, profit margin of 46.31%, and ROE of 81.63%. The company generates $2.0B in annual revenue with strong year-over-year growth of 52.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 91.1/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze LUG.TO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentLUG.TO demonstrates superior asset utilization.
Valuation Score
ExcellentLUG.TO trades at attractive valuation levels.
Growth Score
ExcellentLUG.TO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentLUG.TO maintains a strong and stable balance sheet.
Profitability Score
ExcellentLUG.TO achieves industry-leading margins.
Key Financial Metrics
Is LUG.TO Expensive or Cheap?
P/E Ratio
LUG.TO trades at 18.92 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LUG.TO's PEG of 0.51 indicates potential undervaluation.
Price to Book
The market values Lundin Gold Inc. at 32.54 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.42 times EBITDA. This signals the market has high growth expectations.
How Well Does LUG.TO Make Money?
Net Profit Margin
For every $100 in sales, Lundin Gold Inc. keeps $46.31 as profit after all expenses.
Operating Margin
Core operations generate 65.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $81.63 in profit for every $100 of shareholder equity.
ROA
Lundin Gold Inc. generates $58.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Lundin Gold Inc. generates strong operating cash flow of $1.07B, reflecting robust business health.
Free Cash Flow
Lundin Gold Inc. generates strong free cash flow of $982.21M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.06 in free cash annually.
FCF Yield
LUG.TO converts 5.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
32.54
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.82
vs 25 benchmark
ROA
Return on assets percentage
0.58
vs 25 benchmark
ROCE
Return on capital employed
1.05
vs 25 benchmark
How LUG.TO Stacks Against Its Sector Peers
| Metric | LUG.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.92 | 27.37 | Better (Cheaper) |
| ROE | 81.63% | 1190.00% | Weak |
| Net Margin | 46.31% | 204.00% | Weak |
| Debt/Equity | 0.00 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 2.27 | 3.14 | Strong Liquidity |
| ROA | 58.35% | 2758.00% | Weak |
LUG.TO outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Lundin Gold Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
371.91%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
1692.39%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
762.50%
Industry Style: Cyclical, Commodity, Value
High Growth