ScoreWhy is Lucara Diamond Corp. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 10.75
2
Low Debt Company with Strong Long Term Fundamental Strength
3
The company has declared Negative results for the last 3 consecutive quarters
- NET PROFIT(HY) At CAD -0.47 MM has Grown at -102.55%
- NET SALES(9M) At CAD 134.72 MM has Grown at -37.08%
- INTEREST(9M) At CAD 3.45 MM has Grown at 14.62%
4
With ROE of 2.89%, it has a attractive valuation with a 0.39 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 -27.27%, its profits have fallen by -76%
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -27.27% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Lucara Diamond Corp. 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 Lucara Diamond Corp. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Lucara Diamond Corp.
-7.89%
-1.04
77.59%
S&P/TSX 60
20.36%
2.51
12.02%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.15%
EBIT Growth (5y)
25.19%
EBIT to Interest (avg)
14.96
Debt to EBITDA (avg)
2.01
Net Debt to Equity (avg)
0.73
Sales to Capital Employed (avg)
0.34
Tax Ratio
13.26%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
13.04%
ROE (avg)
7.59%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
0.39
EV to EBIT
14.22
EV to EBITDA
8.14
EV to Capital Employed
0.51
EV to Sales
1.72
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
3.58%
ROE (Latest)
2.89%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at 24.38 %
RAW MATERIAL COST(Y)
Fallen by -8.98% (YoY
CASH AND EQV(HY)
Highest at CAD 686.48 MM
OPERATING PROFIT(Q)
Highest at CAD 29.17 MM
OPERATING PROFIT MARGIN(Q)
Highest at 51.36 %
PRE-TAX PROFIT(Q)
Highest at CAD 31.03 MM
NET PROFIT(Q)
Highest at CAD 21.54 MM
-15What is not working for the Company
NET PROFIT(HY)
At CAD -0.47 MM has Grown at -102.55%
NET SALES(9M)
At CAD 134.72 MM has Grown at -37.08%
INTEREST(9M)
At CAD 3.45 MM has Grown at 14.62%
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.31 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.13 times
Here's what is working for Lucara Diamond Corp.
Debt-Equity Ratio
Lowest at 24.38 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Operating Profit
Highest at CAD 29.17 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CAD MM)
Operating Profit Margin
Highest at 51.36 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at CAD 31.03 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CAD MM)
Net Profit
Highest at CAD 21.54 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CAD MM)
Cash and Eqv
Highest at CAD 686.48 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -8.98% (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 Lucara Diamond Corp.
Net Sales
At CAD 134.72 MM has Grown at -37.08%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (CAD MM)
Interest
At CAD 3.45 MM has Grown at 14.62%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CAD MM)
Inventory Turnover Ratio
Lowest at 2.31 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 6.13 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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