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Market Cap

AU$5.2b

Last Updated

2021/05/10 08:01 UTC

Data Sources

Company Financials +

Executive Summary

Lynas Rare Earths Limited, together with its subsidiaries, engages in the exploration, development, mining, extraction, and processing of rare earth minerals primarily in Australia and Malaysia. More Details


Snowflake Analysis

High growth potential with adequate balance sheet.


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Share Price & News

How has Lynas Rare Earths's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LYC is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: LYC's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

7.9%

LYC

3.6%

AU Metals and Mining

0.5%

AU Market


1 Year Return

232.2%

LYC

59.5%

AU Metals and Mining

36.5%

AU Market

Return vs Industry: LYC exceeded the Australian Metals and Mining industry which returned 59.8% over the past year.

Return vs Market: LYC exceeded the Australian Market which returned 36.7% over the past year.


Shareholder returns

LYCIndustryMarket
7 Day7.9%3.6%0.5%
30 Day-4.9%6.3%1.0%
90 Day14.8%8.6%2.8%
1 Year236.8%232.2%67.7%59.5%40.6%36.5%
3 Year146.5%143.1%71.6%47.5%31.3%15.6%
5 Year753.9%742.3%192.0%145.9%63.4%32.9%

Long-Term Price Volatility Vs. Market

How volatile is Lynas Rare Earths's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lynas Rare Earths undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LYC (A$5.8) is trading below our estimate of fair value (A$19.99)

Significantly Below Fair Value: LYC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LYC is poor value based on its PE Ratio (256.4x) compared to the AU Metals and Mining industry average (14.1x).

PE vs Market: LYC is poor value based on its PE Ratio (256.4x) compared to the Australian market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: LYC is poor value based on its PEG Ratio (5.8x)


Price to Book Ratio

PB vs Industry: LYC is overvalued based on its PB Ratio (5.4x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

How is Lynas Rare Earths forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

44.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LYC's forecast earnings growth (44.1% per year) is above the savings rate (1.9%).

Earnings vs Market: LYC's earnings (44.1% per year) are forecast to grow faster than the Australian market (13.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LYC's revenue (21.9% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: LYC's revenue (21.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LYC's Return on Equity is forecast to be low in 3 years time (16.7%).


Past Performance

How has Lynas Rare Earths performed over the past 5 years?

53.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LYC has high quality earnings.

Growing Profit Margin: LYC's current net profit margins (5.3%) are lower than last year (18.6%).


Past Earnings Growth Analysis

Earnings Trend: LYC has become profitable over the past 5 years, growing earnings by 53.2% per year.

Accelerating Growth: LYC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LYC had negative earnings growth (-74.3%) over the past year, making it difficult to compare to the Metals and Mining industry average (25.6%).


Return on Equity

High ROE: LYC's Return on Equity (1.8%) is considered low.


Financial Health

How is Lynas Rare Earths's financial position?


Financial Position Analysis

Short Term Liabilities: LYC's short term assets (A$630.6M) exceed its short term liabilities (A$76.6M).

Long Term Liabilities: LYC's short term assets (A$630.6M) exceed its long term liabilities (A$301.9M).


Debt to Equity History and Analysis

Debt Level: LYC's debt to equity ratio (17%) is considered satisfactory.

Reducing Debt: LYC's debt to equity ratio has reduced from 836.9% to 17% over the past 5 years.

Debt Coverage: LYC's debt is not well covered by operating cash flow (9.9%).

Interest Coverage: LYC's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Dividend

What is Lynas Rare Earths's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LYC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LYC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LYC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LYC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LYC's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.5yrs

Average management tenure


CEO

Amanda Lacaze (60 yo)

6.92yrs

Tenure

AU$2,047,333

Compensation

Ms. Amanda M. Lacaze, B.A., ATCL, MAICD has been the Managing Director and Chief Executive Officer of Lynas Rare Earths Limited (formerly known as Lynas Corporation Limited) since June 25, 2014. Ms. Lacaze...


CEO Compensation Analysis

Compensation vs Market: Amanda's total compensation ($USD1.61M) is about average for companies of similar size in the Australian market ($USD1.70M).

Compensation vs Earnings: Amanda's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LYC's management team is seasoned and experienced (6.5 years average tenure).


Board Members

Experienced Board: LYC's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 28.9%.


Top Shareholders

Company Information

Lynas Rare Earths Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lynas Rare Earths Limited
  • Ticker: LYC
  • Exchange: ASX
  • Founded: 1983
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$5.226b
  • Shares outstanding: 901.08m
  • Website: https://www.lynascorp.com

Location

  • Lynas Rare Earths Limited
  • 45 Royal Street
  • Level 1
  • East Perth
  • Western Australia
  • 6004
  • Australia

Listings


Biography

Lynas Rare Earths Limited, together with its subsidiaries, engages in the exploration, development, mining, extraction, and processing of rare earth minerals primarily in Australia and Malaysia. The compan...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/10 08:01
End of Day Share Price2021/05/10 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.