Lynas Rare Earths Limited
Lynas Rare Earths Limited Fundamental Analysis
Lynas Rare Earths Limited (LYSDY) shows weak financial fundamentals with a PE ratio of 1869.44, profit margin of 1.44%, and ROE of 0.34%. The company generates $0.6B in annual revenue with weak year-over-year growth of -37.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -7.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LYSDY's fundamental strength across five key dimensions:
Efficiency Score
WeakLYSDY struggles to generate sufficient returns from assets.
Valuation Score
ModerateLYSDY shows balanced valuation metrics.
Growth Score
WeakLYSDY faces weak or negative growth trends.
Financial Health Score
ExcellentLYSDY maintains a strong and stable balance sheet.
Profitability Score
WeakLYSDY struggles to sustain strong margins.
Key Financial Metrics
Is LYSDY Expensive or Cheap?
P/E Ratio
LYSDY trades at 1869.44 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LYSDY's PEG of -15.68 indicates potential undervaluation.
Price to Book
The market values Lynas Rare Earths Limited at 6.35 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 352.01 times EBITDA. This signals the market has high growth expectations.
How Well Does LYSDY Make Money?
Net Profit Margin
For every $100 in sales, Lynas Rare Earths Limited keeps $1.44 as profit after all expenses.
Operating Margin
Core operations generate 1.11 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.34 in profit for every $100 of shareholder equity.
ROA
Lynas Rare Earths Limited generates $0.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Lynas Rare Earths Limited produces operating cash flow of $112.05M, showing steady but balanced cash generation.
Free Cash Flow
Lynas Rare Earths Limited generates weak or negative free cash flow of $-351.37M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.35 in free cash annually.
FCF Yield
LYSDY converts -2.04% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1869.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-15.68
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
28.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.003
vs 25 benchmark
ROA
Return on assets percentage
0.003
vs 25 benchmark
ROCE
Return on capital employed
0.002
vs 25 benchmark
How LYSDY Stacks Against Its Sector Peers
| Metric | LYSDY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1869.44 | 27.01 | Worse (Expensive) |
| ROE | 0.34% | 949.00% | Weak |
| Net Margin | 1.44% | -16159.00% (disorted) | Weak |
| Debt/Equity | 0.09 | 0.48 | Strong (Low Leverage) |
| Current Ratio | 2.83 | 4.42 | Strong Liquidity |
| ROA | 0.27% | -6411.00% (disorted) | Weak |
LYSDY outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Lynas Rare Earths Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-8.20%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
-24.12%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-75.87%
Industry Style: Cyclical, Commodity, Value
Declining