Lundin Gold, Inc. (LUG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Barrick Gold Corp.

Agnico Eagle Mines Ltd.

Pan American Silver Corp.

Kinross Gold Corp.

Alamos Gold, Inc.

SSR Mining, Inc.

Franco-Nevada Corp.

B2Gold Corp.

Lundin Gold, Inc.

Wheaton Precious Metals Corp.

Endeavour Mining Plc

Why is Lundin Gold, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 39.62%

Healthy long term growth as Net Sales has grown by an annual rate of 35.62% and Operating profit at 45.72%

The company has declared Positive results for the last 8 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CAD 1,515.96 MM
ROCE(HY) Highest at 101.28%
DEBT-EQUITY RATIO (HY) Lowest at -93.23 %

With ROE of 66.26%, it has a fair valuation with a 9.71 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 21.89%, its profits have risen by 151.9% ; the PEG ratio of the company is 0.1

Majority shareholders : FIIs

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Lundin Gold, Inc. should be less than 10%
Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gems, Jewellery And Watches)

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

Is Lundin Gold, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Lundin Gold, Inc.

10.46%

25.32

56.15%

S&P/TSX 60

20.36%

2.51

12.02%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

35.62%

EBIT Growth (5y)

45.72%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.20

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

1.31

Tax Ratio

32.80%

Dividend Payout Ratio

35.90%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

740.34%

ROE (avg)

20.31%

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

9.71

EV to EBIT

9.87

EV to EBITDA

8.91

EV to Capital Employed

19.02

EV to Sales

6.35

PEG Ratio

0.10

Dividend Yield

ROCE (Latest)

192.63%

ROE (Latest)

66.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

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

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 1,515.96 MM

ROCE(HY)

Highest at 101.28%

DEBT-EQUITY RATIO (HY)

Lowest at -93.23 %

INVENTORY TURNOVER RATIO(HY)

Highest at 6.88 times

RAW MATERIAL COST(Y)

Fallen by -0.61% (YoY

NET PROFIT(9M)

Higher at CAD 963.65 MM

CASH AND EQV(HY)

Highest at CAD 1,701.4 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 10.61 times

DIVIDEND PER SHARE(HY)

Highest at CAD 10.61

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 33.41%

DIVIDEND PER SHARE(HY)

Lowest at CAD 10.61

NET PROFIT(Q)

Lowest at CAD 262.15 MM

Here's what is working for Lundin Gold, Inc.

Operating Cash Flow

Highest at CAD 1,515.96 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Debt-Equity Ratio

Lowest at -93.23 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 6.88 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at CAD 1,701.4 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 10.61 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at CAD 10.61

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Raw Material Cost

Fallen by -0.61% (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 Lundin Gold, Inc.

Net Profit

Lowest at CAD 262.15 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Dividend per share

Lowest at CAD 10.61

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (CAD)

Dividend Payout Ratio

Lowest at 33.41%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

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