Lucara Diamond Corp. (LUC) 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

Amerigo Resources Ltd.

Talon Metals Corp.

Lucara Diamond Corp.

Nevada Copper Corp.

Largo Inc.

Northern Dynasty Minerals Ltd.

Nouveau Monde Graphite, Inc.

Lithium Ionic Corp.

Premium Nickel Resources Ltd.

Frontier Lithium, Inc.

Consolidated Uranium, Inc.

Why is Lucara Diamond Corp. ?

The company has declared negative results for the last 2 consecutive quarters

INTEREST(HY) At CAD 2.96 MM has Grown at 46.24%
RAW MATERIAL COST(Y) Grown by 193.45% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 2.71 times

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -37.50% 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 Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Lucara Diamond Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Lucara Diamond Corp.

-37.5%

-1.07

76.92%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.15%

EBIT Growth (5y)

25.19%

EBIT to Interest (avg)

10.75

Debt to EBITDA (avg)

1.51

Net Debt to Equity (avg)

0.73

Sales to Capital Employed (avg)

0.37

Tax Ratio

9.85%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

11.93%

ROE (avg)

7.59%

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

0.40

EV to EBIT

14.38

EV to EBITDA

8.24

EV to Capital Employed

0.52

EV to Sales

1.74

PEG Ratio

Dividend Yield

ROCE (Latest)

3.58%

ROE (Latest)

2.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

No Trend

Bearish

OBV

No Trend

Mildly Bearish

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

2What is working for the Company

CASH AND EQV(HY)

Highest at CAD 384.68 MM

DEBT-EQUITY RATIO (HY)

Lowest at 25.44 %

-36What is not working for the Company

INTEREST(HY)

At CAD 2.96 MM has Grown at 46.24%

RAW MATERIAL COST(Y)

Grown by 193.45% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.71 times

NET SALES(Q)

Lowest at CAD 29.88 MM

OPERATING PROFIT(Q)

Lowest at CAD -9.41 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -31.49 %

PRE-TAX PROFIT(Q)

Lowest at CAD -24.05 MM

NET PROFIT(Q)

Lowest at CAD -22.01 MM

EPS(Q)

Lowest at CAD -0.02

Here's what is working for Lucara Diamond Corp.

Cash and Eqv

Highest at CAD 384.68 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 25.44 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Lucara Diamond Corp.

Pre-Tax Profit

At CAD -24.05 MM has Fallen at -322.37%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -22.01 MM has Fallen at -7,327.2%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest

At CAD 2.96 MM has Grown at 46.24%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Net Sales

At CAD 29.88 MM has Fallen at -31.3%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CAD MM)

Net Sales

Lowest at CAD 29.88 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Operating Profit

Lowest at CAD -9.41 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at -31.49 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CAD -24.05 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD -22.01 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD -0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Inventory Turnover Ratio

Lowest at 2.71 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 193.45% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales