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LYC

Lynas Rare EarthsASX:LYC Stock Report

Market Cap

AU$6.2b

7D

-1.6%

1Y

139.2%

Updated

22 Oct, 2021

Data

Company Financials +
LYC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance3/6
Financial Health6/6
Dividends0/6

LYC Overview

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.

Lynas Rare Earths Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Lynas Rare Earths
Historical stock prices
Current Share PriceAU$6.84
52 Week HighAU$2.70
52 Week LowAU$8.05
Beta0.67
1 Month Change-0.73%
3 Month Change6.38%
1 Year Change139.16%
3 Year Change285.35%
5 Year Change1,079.31%
Change since IPO69.87%

Recent News & Updates

Oct 05
Lynas Rare Earths Limited (ASX:LYC) Shares Could Be 24% Below Their Intrinsic Value Estimate

Lynas Rare Earths Limited (ASX:LYC) Shares Could Be 24% Below Their Intrinsic Value Estimate

How far off is Lynas Rare Earths Limited ( ASX:LYC ) from its intrinsic value? Using the most recent financial data...

Sep 03
Lynas Rare Earths' (ASX:LYC) Solid Profits Have Weak Fundamentals

Lynas Rare Earths' (ASX:LYC) Solid Profits Have Weak Fundamentals

Lynas Rare Earths Limited's ( ASX:LYC ) stock was strong after they reported robust earnings. However, our analysis...

Jul 19
Lynas Rare Earths (ASX:LYC) Is Doing The Right Things To Multiply Its Share Price

Lynas Rare Earths (ASX:LYC) Is Doing The Right Things To Multiply Its Share Price

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a...

May 23
Lynas Rare Earths (ASX:LYC) Has A Pretty Healthy Balance Sheet

Lynas Rare Earths (ASX:LYC) Has A Pretty Healthy Balance Sheet

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

LYCAU Metals and MiningAU Market
7D-1.6%-1.7%0.6%
1Y139.2%10.8%21.3%

Return vs Industry: LYC exceeded the Australian Metals and Mining industry which returned 12.5% over the past year.

Return vs Market: LYC exceeded the Australian Market which returned 21.4% over the past year.

Price Volatility

Is LYC's price volatile compared to industry and market?
LYC volatility
LYC Beta0.67
Industry Beta0.97
Market Beta1

Stable Share Price: LYC is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: LYC's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1983n/aAmanda Lacazehttps://www.lynascorp.com

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 company holds an interest in the Mount Weld project, Western Australia. Its products include neodymium and praseodymium, lanthanum, cerium, and mixed heavy rare earth materials.

Lynas Rare Earths Fundamentals Summary

How do Lynas Rare Earths's earnings and revenue compare to its market cap?
LYC fundamental statistics
Market CapAU$6.17b
Earnings (TTM)AU$156.07m
Revenue (TTM)AU$489.02m

39.6x

P/E Ratio

12.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LYC income statement (TTM)
RevenueAU$489.02m
Cost of RevenueAU$302.24m
Gross ProfitAU$186.78m
ExpensesAU$30.71m
EarningsAU$156.07m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.17
Gross Margin38.19%
Net Profit Margin31.91%
Debt/Equity Ratio15.8%

How did LYC perform over the long term?

See historical performance and comparison

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$6.84) is trading below our estimate of fair value (A$26.88)

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 (39.6x) compared to the Australian Metals and Mining industry average (14.3x).

PE vs Market: LYC is poor value based on its PE Ratio (39.6x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: LYC is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: LYC is overvalued based on its PB Ratio (5.7x) 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 5 analysts?

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LYC's forecast earnings growth (19.7% per year) is above the savings rate (1.9%).

Earnings vs Market: LYC's earnings (19.7% per year) are forecast to grow faster than the Australian market (11.5% per year).

High Growth Earnings: LYC's earnings are forecast to grow, but not significantly.

Revenue vs Market: LYC's revenue (17.2% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: LYC's revenue (17.2% per year) is forecast to grow slower 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 (18.7%).


Past Performance

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

49.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LYC has high quality earnings.

Growing Profit Margin: LYC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LYC has become profitable over the past 5 years, growing earnings by 49.6% per year.

Accelerating Growth: LYC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LYC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (35.3%).


Return on Equity

High ROE: LYC's Return on Equity (14.5%) 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$774.0M) exceed its short term liabilities (A$107.7M).

Long Term Liabilities: LYC's short term assets (A$774.0M) exceed its long term liabilities (A$286.4M).


Debt to Equity History and Analysis

Debt Level: LYC's debt to equity ratio (15.8%) is considered satisfactory.

Reducing Debt: LYC's debt to equity ratio has reduced from 785.2% to 15.8% over the past 5 years.

Debt Coverage: LYC's debt is well covered by operating cash flow (125.7%).

Interest Coverage: LYC's interest payments on its debt are well covered by EBIT (21.9x 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?

6.9yrs

Average management tenure


CEO

Amanda Lacaze (61 yo)

7.33yrs

Tenure

AU$2,302,290

Compensation

Ms. Amanda M. Lacaze, B.A., ATCL, MAICD served as a Director of ING Direct Australia until 2021. She has been the Managing Director and Chief Executive Officer of Lynas Rare Earths Limited (formerly known...


CEO Compensation Analysis

Compensation vs Market: Amanda's total compensation ($USD1.72M) is about average for companies of similar size in the Australian market ($USD1.79M).

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 (6.9 years average tenure).


Board Members

Experienced Board: LYC's board of directors are considered experienced (4.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LYC insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lynas Rare Earths Limited's 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$6.172b
  • Shares outstanding: 902.41m
  • Website: https://www.lynascorp.com

Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 15:37
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.