Ivanhoe Mines Ltd. (IVN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lundin Mining Corp.

Ero Copper Corp.

Capstone Copper Corp.

China Gold International Resources Corp. Ltd.

Hudbay Minerals, Inc.

Ivanhoe Mines Ltd.

Cameco Corp.

First Quantum Minerals Ltd.

Sigma Lithium Corp.

NexGen Energy Ltd.

Lithium Americas (Argentina) Corp.

Why is Ivanhoe Mines Ltd. ?

Poor Management Efficiency with a low ROE of 8.22%

The company has been able to generate a Return on Equity (avg) of 8.22% signifying low profitability per unit of shareholders funds

Flat results in Jun 26

NET PROFIT(HY) At CAD 67.53 MM has Grown at -72.48%
ROCE(HY) Lowest at 2.45%
INTEREST(Q) At CAD 6.41 MM has Grown at 13.14%

With ROE of 1.60%, it has a expensive valuation with a 1.78 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 1.15%, its profits have fallen by -77.1%

Underperformed the market in the last 1 year

The stock has generated a return of 1.15% in the last 1 year, much lower than market (S&P/TSX 60) returns of 28.13%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ivanhoe Mines Ltd. should be less than 10%
Overall Portfolio exposure to Minerals & Mining should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Minerals & Mining)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ivanhoe Mines Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ivanhoe Mines Ltd.

1.32%

5.99

58.19%

S&P/TSX 60

29.63%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

274.16%

EBIT Growth (5y)

12.90%

EBIT to Interest (avg)

-2.30

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.04

Tax Ratio

28.76%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.07%

ROCE (avg)

ROE (avg)

8.22%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

112

Industry P/E

Price to Book Value

1.78

EV to EBIT

-792.21

EV to EBITDA

137.65

EV to Capital Employed

1.73

EV to Sales

20.90

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.22%

ROE (Latest)

1.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

17What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 4.56 times

PRE-TAX PROFIT(Q)

Highest at CAD 67.76 MM

RAW MATERIAL COST(Y)

Fallen by -231.67% (YoY

CASH AND EQV(HY)

Highest at CAD 1,953.46 MM

NET SALES(Q)

At CAD 211.27 MM has Grown at 57.68%

NET PROFIT(Q)

Highest at CAD 77.48 MM

-13What is not working for the Company

NET PROFIT(HY)

At CAD 67.53 MM has Grown at -72.48%

ROCE(HY)

Lowest at 2.45%

INTEREST(Q)

At CAD 6.41 MM has Grown at 13.14%

DEBT-EQUITY RATIO (HY)

Highest at 11.08 %

Here's what is working for Ivanhoe Mines Ltd.

Pre-Tax Profit

At CAD 67.76 MM has Grown at 346.61%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Pre-Tax Profit

Highest at CAD 67.76 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Debtors Turnover Ratio

Highest at 4.56 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

At CAD 211.27 MM has Grown at 57.68%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Net Profit

Highest at CAD 77.48 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Cash and Eqv

Highest at CAD 1,953.46 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -231.67% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Ivanhoe Mines Ltd.

Interest

At CAD 6.41 MM has Grown at 13.14%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Debt-Equity Ratio

Highest at 11.08 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio