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Lynas

ASX:LYC
Snowflake Description

Exceptional growth potential and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LYC
ASX
A$2B
Market Cap
  1. Home
  2. AU
  3. Materials
Company description

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 last earnings update was 88 days ago. More info.


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  • Lynas has significant price volatility in the past 3 months.
LYC Share Price and Events
7 Day Returns
18%
ASX:LYC
-2.5%
AU Metals and Mining
1.2%
AU Market
1 Year Returns
5.8%
ASX:LYC
7.1%
AU Metals and Mining
4.7%
AU Market
LYC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Lynas (LYC) 18% 16.8% 34.5% 5.8% 237.1% 68.6%
AU Metals and Mining -2.5% 0.2% 0% 7.1% 75.3% 11.9%
AU Market 1.2% 1.1% 4.3% 4.7% 18.3% 9%
1 Year Return vs Industry and Market
  • LYC underperformed the Metals and Mining industry which returned 7.1% over the past year.
  • LYC outperformed the Market in Australia which returned 4.7% over the past year.
Price Volatility
LYC
Industry
5yr Volatility vs Market

LYC Value

 Is Lynas undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Lynas to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Lynas.

ASX:LYC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:LYC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.02
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.021 (1 + (1- 24%) (15.35%))
1.094
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.094 * 5.96%)
8.83%

Discounted Cash Flow Calculation for ASX:LYC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Lynas is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:LYC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.83%)
2019 75.44 Analyst x1 69.32
2020 187.44 Analyst x1 158.25
2021 348.80 Analyst x1 270.58
2022 498.26 Est @ 42.85% 355.15
2023 651.16 Est @ 30.69% 426.46
2024 795.55 Est @ 22.17% 478.74
2025 924.56 Est @ 16.22% 511.22
2026 1,035.92 Est @ 12.04% 526.31
2027 1,130.44 Est @ 9.12% 527.72
2028 1,210.49 Est @ 7.08% 519.22
Present value of next 10 years cash flows A$3,842.97
ASX:LYC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$1,210.49 × (1 + 2.31%) ÷ (8.83% – 2.31%)
A$18,991.92
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$18,991.92 ÷ (1 + 8.83%)10
A$8,146.30
ASX:LYC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$3,842.97 + A$8,146.30
A$11,989.27
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$11,989.27 / 665.68
A$18.01
ASX:LYC Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$18.01
Current discount Discount to share price of A$2.36
= -1 x (A$2.36 - A$18.01) / A$18.01
86.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Lynas is available for.
Intrinsic value
>50%
Share price is A$2.36 vs Future cash flow value of A$18.01
Current Discount Checks
For Lynas to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Lynas's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Lynas's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Lynas's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Lynas's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:LYC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.03
ASX:LYC Share Price ** ASX (2019-05-24) in AUD A$2.36
Australia Metals and Mining Industry PE Ratio Median Figure of 78 Publicly-Listed Metals and Mining Companies 11.86x
Australia Market PE Ratio Median Figure of 543 Publicly-Listed Companies 16.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Lynas.

ASX:LYC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:LYC Share Price ÷ EPS (both in AUD)

= 2.36 ÷ 0.03

76.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lynas is overvalued based on earnings compared to the AU Metals and Mining industry average.
  • Lynas is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Lynas's expected growth come at a high price?
Raw Data
ASX:LYC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 76.36x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
79.9%per year
Australia Metals and Mining Industry PEG Ratio Median Figure of 39 Publicly-Listed Metals and Mining Companies 0.74x
Australia Market PEG Ratio Median Figure of 358 Publicly-Listed Companies 1.41x

*Line of best fit is calculated by linear regression .

ASX:LYC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 76.36x ÷ 79.9%

0.96x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lynas is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Lynas's assets?
Raw Data
ASX:LYC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.69
ASX:LYC Share Price * ASX (2019-05-24) in AUD A$2.36
Australia Metals and Mining Industry PB Ratio Median Figure of 585 Publicly-Listed Metals and Mining Companies 1.48x
Australia Market PB Ratio Median Figure of 1,682 Publicly-Listed Companies 1.66x
ASX:LYC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:LYC Share Price ÷ Book Value per Share (both in AUD)

= 2.36 ÷ 0.69

3.4x

* Primary Listing of Lynas.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lynas is overvalued based on assets compared to the AU Metals and Mining industry average.
X
Value checks
We assess Lynas's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Lynas has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LYC Future Performance

 How is Lynas expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
79.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Lynas expected to grow at an attractive rate?
  • Lynas's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Lynas's earnings growth is expected to exceed the Australia market average.
  • Lynas's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:LYC Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:LYC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 79.9%
ASX:LYC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 27.4%
Australia Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 2.4%
Australia Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 1%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:LYC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:LYC Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 661 369 231 2
2020-06-30 527 239 125 2
2019-06-30 380 115 51 2
ASX:LYC Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 353 79 21
2018-09-30 364 99 37
2018-06-30 374 118 53
2018-03-31 359 39
2017-12-31 343 107 25
2017-09-30 300 71 12
2017-06-30 257 34 -1
2017-03-31 235 -2
2016-12-31 212 4 -3
2016-09-30 202 4 -49
2016-06-30 191 4 -94
2016-03-31 182 -3 -88

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Lynas's earnings are expected to grow significantly at over 20% yearly.
  • Lynas's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:LYC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Lynas Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:LYC Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 0.33 0.33 0.33 2.00
2020-06-30 0.18 0.19 0.17 2.00
2019-06-30 0.08 0.10 0.05 2.00
ASX:LYC Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.03
2018-09-30 0.06
2018-06-30 0.09
2018-03-31 0.08
2017-12-31 0.06
2017-09-30 0.03
2017-06-30 0.00
2017-03-31 -0.01
2016-12-31 -0.01
2016-09-30 -0.14
2016-06-30 -0.27
2016-03-31 -0.25

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Lynas is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Lynas's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Lynas has a total score of 6/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LYC Past Performance

  How has Lynas performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Lynas's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Lynas has delivered over 20% year on year earnings growth in the past 5 years.
  • Lynas's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Lynas's 1-year earnings growth is negative, it can't be compared to the AU Metals and Mining industry average.
Earnings and Revenue History
Lynas's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Lynas Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:LYC Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 352.98 21.33 34.61
2018-09-30 363.54 37.23 34.44
2018-06-30 374.11 53.12 34.27
2018-03-31 358.69 39.24 30.14
2017-12-31 343.28 25.37 26.02
2017-09-30 300.13 12.42 25.76
2017-06-30 256.98 -0.53 25.50
2017-03-31 234.69 -1.81 28.74
2016-12-31 212.41 -3.08 31.97
2016-09-30 201.68 -48.58 33.38
2016-06-30 190.96 -94.08 34.79
2016-03-31 181.83 -87.67 22.32
2015-12-31 172.71 -81.27 9.85
2015-09-30 158.65 -99.98 25.39
2015-06-30 144.60 -118.69 40.92
2015-03-31 129.81 -254.20 69.23
2014-12-31 115.03 -389.71 97.54
2014-09-30 89.80 -367.60 105.95
2014-06-30 64.57 -345.49 114.36
2014-03-31 40.06 -245.88 122.77
2013-12-31 15.54 -146.27 131.19
2013-09-30 8.25 -144.91 119.92
2013-06-30 0.95 -143.56 108.66
2013-03-31 0.48 -124.71 95.00
2012-12-31 -105.87 81.35
2012-09-30 -96.82 77.74
2012-06-30 -87.77 74.12

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Lynas has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Lynas used its assets less efficiently than the AU Metals and Mining industry average last year based on Return on Assets.
  • Lynas has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Lynas's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Lynas has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LYC Health

 How is Lynas's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Lynas's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Lynas is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Lynas's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Lynas's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Lynas Company Filings, last reported 4 months ago.

ASX:LYC Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 461.42 241.16 53.70
2018-09-30 461.42 241.16 53.70
2018-06-30 434.48 225.11 42.29
2018-03-31 434.48 225.11 42.29
2017-12-31 333.97 305.52 47.83
2017-09-30 333.97 305.52 47.83
2017-06-30 112.16 493.36 63.93
2017-03-31 112.16 493.36 63.93
2016-12-31 82.76 477.68 38.48
2016-09-30 82.76 477.68 38.48
2016-06-30 71.21 562.56 43.35
2016-03-31 71.21 562.56 43.35
2015-12-31 68.25 573.47 53.64
2015-09-30 68.25 573.47 53.64
2015-06-30 183.23 546.17 51.97
2015-03-31 183.23 546.17 51.97
2014-12-31 237.55 507.68 70.78
2014-09-30 237.55 507.68 70.78
2014-06-30 302.04 444.95 38.14
2014-03-31 302.04 444.95 38.14
2013-12-31 546.19 476.80 77.46
2013-09-30 546.19 476.80 77.46
2013-06-30 628.71 458.80 141.37
2013-03-31 628.71 458.80 141.37
2012-12-31 710.50 399.06 226.22
2012-09-30 710.50 399.06 226.22
2012-06-30 563.49 403.06 205.44
  • Lynas's level of debt (52.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (87.7% vs 52.3% today).
  • Debt is well covered by operating cash flow (33%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.2x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Lynas's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Lynas has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LYC Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Lynas dividends. Estimated to be 1.44% next year.
If you bought A$2,000 of Lynas shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Lynas's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Lynas's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:LYC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Australia Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 36 Stocks 3.8%
Australia Market Average Dividend Yield Market Cap Weighted Average of 414 Stocks 4.2%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:LYC Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.17 1.00
2020-06-30 0.00 2.00
2019-06-30 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Lynas has not reported any payouts.
  • Unable to verify if Lynas's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Lynas's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Lynas has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Lynas's dividends in 3 years as they are not expected to pay a notable one for Australia.
X
Income/ dividend checks
We assess Lynas's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Lynas afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Lynas has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LYC Management

 What is the CEO of Lynas's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Amanda Lacaze
COMPENSATION A$3,727,276
AGE 58
TENURE AS CEO 4.9 years
CEO Bio

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 MLC Consulting Pty Ltd. She served as Managing Director of Commander Communications Ltd., since December 2007 and served as its Chief Executive Officer since January 2008. She served as Chief Executive Officer of AOL|7 Pty Ltd. She served as a Managing Director of Marketing at Telstra's Commercial & Consumer Division. She has 25 years of experience in management and marketing in telecommunications for major Australian companies, including 10 years’ experience in the telecommunications sector. She held various business management roles at ICI Australia (now Orica and Incitec Pivot). Her early experience was in consumer goods with Nestle. Her early experience was in the manufacturing sector, at ICI and Nestle. Ms. Lacaze served as an Executive Chairman of Orion Telecommunications Ltd. from April 24, 2006 to October 12, 2007. She has been a Non-Executive Director of ING Bank (Australia) Ltd., since May 31, 2011. She serves as a Director of ING Direct Australia. She has been an Executive Director of Lynas Corporation Limited since June 25, 2014. She served as an Independent Non-Executive Director of McPherson's Limited since September 22, 2011 until February 20, 2018. She served as a Non-Executive Director of Lynas Corporation Limited from January 1, 2014 to June 25, 2014. She served as a Director of Orion Telecommunications Ltd. from April 24, 2006 to October 12, 2007. She serves on the Advisory board to the CMOS research unit at the University of Technology, Sydney. She is a Member of the AICD and Chief Executive Women. Ms Lacaze holds a Bachelor of Arts Degree from the University of Queensland and a postgraduate Diploma in Marketing from the Australian Graduate School of Management.

CEO Compensation
  • Amanda's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Amanda's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Lynas management team in years:

4.8
Average Tenure
  • The tenure for the Lynas management team is about average.
Management Team

Amanda Lacaze

TITLE
MD, CEO & Director
COMPENSATION
A$4M
AGE
58
TENURE
4.9 yrs

Gaudenz Sturzenegger

TITLE
Chief Financial Officer
COMPENSATION
A$1M
TENURE
4.5 yrs

Andrew Arnold

TITLE
General Counsel & Company Secretary
COMPENSATION
A$962K
TENURE
10.8 yrs

Pol Le Roux

TITLE
Vice President of Sales & Marketing
COMPENSATION
A$1M
TENURE
8.6 yrs

Mimi Afza

TITLE
Vice President of People & Culture
COMPENSATION
A$655K
TENURE
4.5 yrs

Mashal Ahmad

TITLE
Managing Director of Malaysia
COMPENSATION
A$951K
TENURE
6.5 yrs

Kam Leung

TITLE
Vice President of Production
COMPENSATION
A$1M
TENURE
4.8 yrs

Ivo Polovineo

TITLE
Joint Company Secretary
COMPENSATION
A$68K
AGE
67
TENURE
4.6 yrs
Board of Directors Tenure

Average tenure and age of the Lynas board of directors in years:

4.3
Average Tenure
63
Average Age
  • The tenure for the Lynas board of directors is about average.
Board of Directors

Mike Harding

TITLE
Non-Executive Chairman
COMPENSATION
A$289K
AGE
69
TENURE
4.3 yrs

Amanda Lacaze

TITLE
MD, CEO & Director
COMPENSATION
A$4M
AGE
58
TENURE
5.3 yrs

Kathleen Conlon

TITLE
Non-Executive Director
COMPENSATION
A$150K
AGE
54
TENURE
7.5 yrs

Philippe Etienne

TITLE
Non-Executive Director
COMPENSATION
A$146K
AGE
63
TENURE
4.3 yrs

John Humphrey

TITLE
Non-Executive Director
COMPENSATION
A$126K
AGE
63
TENURE
2 yrs

Grant Murdoch

TITLE
Non-Executive Director
COMPENSATION
A$93K
AGE
66
TENURE
1.6 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Lynas insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
16. Apr 19 Sell FIL Limited Company 29. Mar 19 12. Apr 19 -9,560,777 A$2.13 A$-20,387,395
16. Apr 19 Buy FIL Limited Company 11. Mar 19 05. Apr 19 2,439,737 A$2.15 A$5,240,576
03. Apr 19 Buy Credit Suisse Asset Management (Switzerland) Company 30. Nov 18 03. Dec 18 441,232 A$2.02 A$892,612
12. Mar 19 Sell FIL Limited Company 08. Jan 19 08. Mar 19 -237,575 A$1.82 A$-432,196
12. Mar 19 Buy FIL Limited Company 07. Dec 18 08. Mar 19 7,244,264 A$1.80 A$13,017,218
05. Mar 19 Sell Greencape Capital Pty Ltd Company 15. Feb 19 15. Feb 19 -30,000 A$1.83 A$-54,807
05. Mar 19 Buy Greencape Capital Pty Ltd Company 20. Dec 18 01. Mar 19 6,934,900 A$1.62 A$11,255,377
01. Mar 19 Buy Grant Murdoch Individual 01. Mar 19 01. Mar 19 20,000 A$1.62 A$32,450
01. Mar 19 Buy Philippe Etienne Individual 01. Mar 19 01. Mar 19 25,000 A$1.70 A$42,500
01. Mar 19 Buy Kathleen Conlon Individual 01. Mar 19 01. Mar 19 30,000 A$1.66 A$49,650
01. Mar 19 Buy John Humphrey Individual 01. Mar 19 01. Mar 19 30,000 A$1.67 A$50,175
21. Dec 18 Buy Challenger Limited Company 18. Sep 18 19. Sep 18 10,900 A$1.93 A$20,640
21. Dec 18 Sell Greencape Capital Pty Ltd Company 01. Nov 18 23. Nov 18 -7,693,452 A$2.15 A$-16,563,245
21. Dec 18 Buy Greencape Capital Pty Ltd Company 24. Sep 18 19. Dec 18 15,259,276 A$1.70 A$25,892,777
10. Dec 18 Sell FIL Limited Company 31. Oct 18 03. Dec 18 -312,998 A$2.35 A$-735,242
10. Dec 18 Buy FIL Limited Company 18. Oct 18 05. Dec 18 3,065,343 A$2.27 A$6,971,202
30. Oct 18 Buy Grant Murdoch Individual 30. Oct 18 30. Oct 18 50,000 A$1.85 A$92,500
30. Oct 18 Buy Philippe Etienne Individual 30. Oct 18 30. Oct 18 25,000 A$1.85 A$46,250
30. Oct 18 Buy Richard Harding Individual 30. Oct 18 30. Oct 18 53,994 A$1.85 A$99,619
17. Oct 18 Sell FIL Limited Company 26. Sep 18 10. Oct 18 -556,959 A$1.69 A$-942,240
17. Oct 18 Buy FIL Limited Company 10. Sep 18 15. Oct 18 8,237,231 A$2.01 A$16,556,837
19. Sep 18 Buy Challenger Limited Company 21. Aug 18 18. Sep 18 7,993 A$1.99 A$15,942
19. Sep 18 Buy Greencape Capital Pty Ltd Company 21. Aug 18 17. Sep 18 6,624,700 A$1.99 A$13,212,915
11. Sep 18 Buy FIL Limited Company 08. May 18 07. Sep 18 15,924,485 A$2.89 A$46,021,772
20. Aug 18 Buy Greencape Capital Pty Ltd Company 19. Jul 18 16. Aug 18 6,847,992 A$2.18 A$14,942,758
20. Jul 18 Buy Greencape Capital Pty Ltd Company 05. Apr 18 18. Jul 18 18,145,613 A$2.33 A$42,282,714
X
Management checks
We assess Lynas's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Lynas has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LYC News

Simply Wall St News

Why Lynas Corporation Limited’s (ASX:LYC) Return On Capital Employed Might Be A Concern

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Need To Know: Lynas Corporation Limited (ASX:LYC) Insiders Have Been Buying Shares

So we'll take a look at whether insiders have been buying or selling shares in Lynas Corporation Limited (ASX:LYC). … The Last 12 Months Of Insider Transactions At Lynas. … That means that an insider was happy to buy shares at above the current price.

Simply Wall St -

Should You Be Concerned About Lynas Corporation Limited's (ASX:LYC) Historical Volatility?

Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

With A Return On Equity Of 12%, Has Lynas Corporation Limited's (ASX:LYC) Management Done Well?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each A$1 of shareholders' equity it has, the company made A$0.12 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Do Directors Own Lynas Corporation Limited (ASX:LYC) Shares?

Generally speaking, as a company grows, institutions will increase their ownership. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Lynas is a smaller company with a market capitalization of AU$1.0b, so it may still be flying under the radar of many institutional investors.

Simply Wall St -

Lynas Corporation Limited (ASX:LYC): Time For A Financial Health Check

However, an important fact which most ignore is: how financially healthy is the business? … Evaluating financial health as part of your investment thesis is. … Here are few basic financial health checks you should consider before taking the plunge.

Simply Wall St -

Is Lynas Corporation Limited's (ASX:LYC) CEO Being Overpaid?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Amanda Lacaze's Compensation Compare With Similar Sized Companies. … According to our data, Lynas Corporation Limited has a market capitalization of AU$1.4b, and pays its CEO total annual compensation worth AU$3.7m.

Simply Wall St -

Does The Lynas Corporation Limited (ASX:LYC) Share Price Fall With The Market?

If you're interested in Lynas Corporation Limited (ASX:LYC), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Taking A Look At Lynas Corporation Limited's (ASX:LYC) ROE

This article is for those who would like to learn about Return On Equity (ROE). … That means that for every A$1 worth of shareholders' equity, it generated A$0.12 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What You Must Know About Lynas Corporation Limited's (ASX:LYC) Financial Strength

While small-cap stocks, such as Lynas Corporation Limited (ASX:LYC) with its market cap of AU$1.35b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … I believe these basic checks tell most of the story you need to know.

Simply Wall St -

LYC Company Info

Description

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. It also produces and supplies neodymium-praseodymium material. The company holds interest in the Mount Weld project in Western Australia. It also owns, develops, and operates Lynas advanced materials plant located in Kuantan, Malaysia; and Mount Weld concentration plant located in Western Australia. In addition, the company offers corporate services. The company was incorporated in 1983 and is headquartered in Kuantan, Malaysia.

Details
Name: Lynas Corporation Limited
LYC
Exchange: ASX
Founded: 1983
A$1,571,008,717
665,681,660
Website: http://www.lynascorp.com
Address: Lynas Corporation Limited
PT17212 Jalan Gebeng 3,
Kawasan Perindustrian Gebeng,
Kuantan,
Pahang, 26080,
Malaysia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX LYC Ordinary Shares Australian Securities Exchange AU AUD 02. Jan 1992
OTCPK LYSC.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB LYI Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
LSE 0A2N Ordinary Shares London Stock Exchange GB AUD 02. Jan 1992
OTCPK LYSD.Y SPON ADR EACH REP 1 ORD SHS (POST SPLT) Pink Sheets LLC US USD 05. Nov 2008
DB LYIC SPON ADR EACH REP 1 ORD SHS (POST SPLT) Deutsche Boerse AG DE EUR 05. Nov 2008
Number of employees
Current staff
Staff numbers
0
Lynas employees.
Industry
Diversified Metals and Mining
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/26 10:31
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/21
Last earnings filing: 2019/02/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.