ASX:LYC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Exceptional growth potential with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LYC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.2%

LYC

3.3%

AU Metals and Mining

4.4%

AU Market


1 Year Return

-13.4%

LYC

1.5%

AU Metals and Mining

-11.2%

AU Market

Return vs Industry: LYC underperformed the Australian Metals and Mining industry which returned 0.6% over the past year.

Return vs Market: LYC matched the Australian Market which returned -13.6% over the past year.


Shareholder returns

LYCIndustryMarket
7 Day12.2%3.3%4.4%
30 Day34.4%14.7%11.3%
90 Day8.9%1.9%-13.6%
1 Year-13.4%-13.4%7.0%1.5%-7.5%-11.2%
3 Year140.7%140.7%65.1%42.3%13.5%-1.6%
5 Year404.9%404.9%88.6%50.5%26.5%-0.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

21.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LYC (A$2.07) is trading above our estimate of fair value (A$0.92)

Significantly Below Fair Value: LYC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LYC is poor value based on its PE Ratio (21.6x) compared to the Metals and Mining industry average (9.4x).

PE vs Market: LYC is poor value based on its PE Ratio (21.6x) compared to the Australian market (14.8x).


Price to Earnings Growth Ratio

PEG Ratio: LYC is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: LYC is overvalued based on its PB Ratio (2.6x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

How is Lynas forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

50.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LYC's forecast earnings growth (50.8% per year) is above the savings rate (2.3%).

Earnings vs Market: LYC's earnings (50.8% per year) are forecast to grow faster than the Australian market (14.4% per year).

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

Revenue vs Market: LYC's revenue (20.1% per year) is forecast to grow faster than the Australian market (4.3% per year).

High Growth Revenue: LYC's revenue (20.1% 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 high in 3 years time (20.2%)


Next Steps

Past Performance

How has Lynas performed over the past 5 years?

82.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LYC has a large one-off gain of A$43.4M impacting its December 31 2019 financial results.

Growing Profit Margin: LYC's current net profit margins (17.8%) are higher than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: LYC has become profitable over the past 5 years, growing earnings by 82% per year.

Accelerating Growth: LYC's earnings growth over the past year (204.2%) exceeds its 5-year average (82% per year).

Earnings vs Industry: LYC earnings growth over the past year (204.2%) exceeded the Metals and Mining industry -7.9%.


Return on Equity

High ROE: LYC's Return on Equity (11.8%) is considered low.


Next Steps

Financial Health

How is Lynas's financial position?


Financial Position Analysis

Short Term Liabilities: LYC's short term assets (A$188.7M) exceed its short term liabilities (A$89.1M).

Long Term Liabilities: LYC's short term assets (A$188.7M) do not cover its long term liabilities (A$316.9M).


Debt to Equity History and Analysis

Debt Level: LYC's debt to equity ratio (35.6%) is considered satisfactory.

Reducing Debt: LYC's debt to equity ratio has reduced from 213.9% to 35.6% over the past 5 years.

Debt Coverage: LYC's debt is well covered by operating cash flow (51.9%).

Interest Coverage: LYC's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet


Next Steps

Dividend

What is Lynas'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?

5.7yrs

Average management tenure


CEO

Amanda Lacaze (59yo)

5.92yrs

Tenure

AU$3,224,474

Compensation

Ms. Amanda M. Lacaze, B.A., ATCL, MAICD has been the Managing Director and Chief Executive Officer of Lynas Corporation Limited since June 25, 2014. Ms. Lacaze serves as a Principal and Managing Partner of ...


CEO Compensation Analysis

Compensation vs Market: Amanda's total compensation ($USD2.11M) is above average for companies of similar size in the Australian market ($USD1.02M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Amanda Lacaze
MD, CEO & Director5.92yrsAU$3.22m0.63% A$9.2m
Gaudenz Sturzenegger
Chief Financial Officer5.5yrsAU$1.16m0.099% A$1.5m
Andrew Arnold
General Counsel & Company Secretary11.83yrsAU$1.10m0.056% A$824.2k
Pol Le Roux
Vice President of Sales & Marketing9.58yrsAU$1.26m0.083% A$1.2m
Mimi Afza
Vice President of People & Culture5.5yrsAU$769.79k0.027% A$403.2k
Mashal Ahmad
Managing Director of Malaysiano dataAU$973.97k0.055% A$813.8k
Kam Leung
Vice President of Production5.75yrsAU$1.22m0.064% A$941.9k
Ivo Polovineo
Joint Company Secretary5.58yrsAU$1.83kno data
Grant McAuliffe
General Manager of Lynas Advanced Materials Plant1.83yrsno datano data

5.7yrs

Average Tenure

Experienced Management: LYC's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Amanda Lacaze
MD, CEO & Director5.92yrsAU$3.22m0.63% A$9.2m
Richard Harding
Independent Non-Executive Chairman5.33yrsAU$295.53k0.0093% A$136.8k
John Humphrey
Independent Non-Executive Director3yrsAU$140.31k0.0072% A$105.0k
Kathleen Conlon
Independent Non-Executive Director8.5yrsAU$153.30k0.017% A$242.9k
Philippe Etienne
Independent Non-Executive Director5.33yrsAU$153.30k0.0095% A$139.9k
Grant Murdoch
Non-Executive Director2.58yrsAU$142.35k0.020% A$299.2k

5.3yrs

Average Tenure

64yo

Average Age

Experienced Board: LYC's board of directors are considered experienced (5.3 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 5%.


Top Shareholders

Company Information

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


Key Information

  • Name: Lynas Corporation Limited
  • Ticker: LYC
  • Exchange: ASX
  • Founded: 1983
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$1.468b
  • Shares outstanding: 699.21m
  • Website: https://www.lynascorp.com

Location

  • Lynas Corporation Limited
  • PT17212 Jalan Gebeng 3
  • Kawasan Perindustrian Gebeng
  • Kuantan
  • Pahang
  • 26080
  • Malaysia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LYCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
LYIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
LYSC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
LYCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
0A2NLSE (London Stock Exchange)YesOrdinary SharesGBAUDJan 1992
LYSD.YOTCPK (Pink Sheets LLC)SPONSORD ADR NEWUSUSDNov 2008
LYICDB (Deutsche Boerse AG)SPONSORD ADR NEWDEEURNov 2008

Biography

Lynas Corporation 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 in Western Australia. It also produces and supplies neodymium-praseodymium material; develops and operates advanced material processing and concentration plants; and offers corporate services. Lynas Corporation Limited was incorporated in 1983 and is based in Kuantan, Malaysia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 10:31
End of Day Share Price2020/05/26 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.