Labrador Iron Ore Royalty Corp. (LIF) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Stelco Holdings, Inc.

Labrador Iron Ore Royalty Corp.

Century Global Commodities Corp.

CVW CleanTech Inc.

Oceanic Iron Ore Corp.

Abaxx Technologies, Inc.

Black Iron, Inc.

Sokoman Minerals Corp.

Cartier Silver Corp.

Rockex Mining Corp.

JKS Resources, Inc.

Why is Labrador Iron Ore Royalty Corp. ?

High Management Efficiency with a high ROE of 38.81%

Company has very low debt and has enough cash to service the debt requirements

With a fall in PBT of -1.11%, the company declared Very Negative results in Jun 25

NET PROFIT(HY) At CAD 47.94 MM has Grown at -56.22%
OPERATING CASH FLOW(Y) Lowest at CAD 132.26 MM
NET SALES(HY) At CAD 82.57 MM has Grown at -24.33%

With ROE of 17.73%, it has a very attractive valuation with a 2.84 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -13.38%, its profits have fallen by -46.1%

Majority shareholders : FIIs

Below par performance in long term as well as near term

Along with generating -13.38% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Labrador Iron Ore Royalty Corp. should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

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

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

Is Labrador Iron Ore Royalty Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Labrador Iron Ore Royalty Corp.

1.78%

3.43

19.83%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.11%

EBIT Growth (5y)

0.12%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

0.31

Tax Ratio

24.32%

Dividend Payout Ratio

109.69%

Pledged Shares

Institutional Holding

0.14%

ROCE (avg)

27.74%

ROE (avg)

38.81%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.90

EV to EBIT

13.63

EV to EBITDA

13.03

EV to Capital Employed

2.91

EV to Sales

10.22

PEG Ratio

Dividend Yield

0.14%

ROCE (Latest)

21.36%

ROE (Latest)

17.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.47% (YoY

-20What is not working for the Company

NET PROFIT(HY)

At CAD 47.94 MM has Grown at -56.22%

OPERATING CASH FLOW(Y)

Lowest at CAD 132.26 MM

NET SALES(HY)

At CAD 82.57 MM has Grown at -24.33%

ROCE(HY)

Lowest at 17.32%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 72.39%

CASH AND EQV(HY)

Lowest at CAD 23.8 MM

DEBT-EQUITY RATIO (HY)

Highest at -0.74 %

DIVIDEND PER SHARE(HY)

Lowest at CAD 3.55

Here's what is working for Labrador Iron Ore Royalty Corp.

Raw Material Cost

Fallen by 0.47% (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

Depreciation

Highest at CAD 1.67 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Labrador Iron Ore Royalty Corp.

Net Profit

At CAD 47.94 MM has Grown at -56.22%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Net Sales

At CAD 82.57 MM has Grown at -24.33%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Operating Cash Flow

Lowest at CAD 132.26 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Cash and Eqv

Lowest at CAD 23.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -0.74 %

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

Dividend per share

Lowest at CAD 3.55

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (CAD)

Dividend Payout Ratio

Lowest at 72.39%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)