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Labrador Iron Ore Royalty

TSX:LIF
Snowflake Description

Excellent balance sheet with proven track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LIF
TSX
CA$2B
Market Cap
  1. Home
  2. CA
  3. Materials
Company description

Labrador Iron Ore Royalty Corporation, together with its subsidiary, Hollinger-Hanna Limited, owns a 15.10% equity interest in Iron Ore Company of Canada (IOC) that operates an iron mine near Labrador City, Newfoundland and Labrador. The last earnings update was 67 days ago. More info.


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LIF Share Price and Events
7 Day Returns
2.6%
TSX:LIF
5.5%
CA Metals and Mining
-0.2%
CA Market
1 Year Returns
46.7%
TSX:LIF
6.8%
CA Metals and Mining
-2.8%
CA Market
LIF Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Labrador Iron Ore Royalty (LIF) 2.6% 2.8% 11% 46.7% 138.8% 15.4%
CA Metals and Mining 5.5% 10.3% 13.7% 6.8% -14% -14.5%
CA Market -0.2% -0.4% -2.3% -2.8% 7.6% 0%
1 Year Return vs Industry and Market
  • LIF outperformed the Metals and Mining industry which returned 6.8% over the past year.
  • LIF outperformed the Market in Canada which returned -2.8% over the past year.
Price Volatility
LIF
Industry
5yr Volatility vs Market

LIF Value

 Is Labrador Iron Ore Royalty 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 Labrador Iron Ore Royalty 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 Labrador Iron Ore Royalty.

TSX:LIF Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

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 TSX:LIF
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.053 (1 + (1- 26.5%) (0%))
1.035
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.035 * 5.96%)
8.12%

Discounted Cash Flow Calculation for TSX:LIF using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Labrador Iron Ore Royalty 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.

TSX:LIF DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 8.12%)
2020 176.33 Analyst x3 163.09
2021 153.50 Analyst x2 131.32
2022 110.00 Analyst x1 87.04
2023 98.64 Est @ -10.32% 72.19
2024 92.09 Est @ -6.64% 62.34
2025 88.35 Est @ -4.07% 55.31
2026 86.35 Est @ -2.26% 50.00
2027 85.49 Est @ -1% 45.79
2028 85.39 Est @ -0.12% 42.30
2029 85.82 Est @ 0.5% 39.32
Present value of next 10 years cash flows CA$748.70
TSX:LIF DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$85.82 × (1 + 1.95%) ÷ (8.12% – 1.95%)
CA$1,417.86
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$1,417.86 ÷ (1 + 8.12%)10
CA$649.63
TSX:LIF Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$748.70 + CA$649.63
CA$1,398.33
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$1,398.33 / 64.00
CA$21.85
TSX:LIF Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$21.85
Current discount Discount to share price of CA$35.25
= -1 x (CA$35.25 - CA$21.85) / CA$21.85
-61.3%

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

  • The current share price of Labrador Iron Ore Royalty is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Labrador Iron Ore Royalty's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Labrador Iron Ore Royalty's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:LIF PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CAD CA$2.15
TSX:LIF Share Price ** TSX (2019-07-19) in CAD CA$35.25
Canada Metals and Mining Industry PE Ratio Median Figure of 107 Publicly-Listed Metals and Mining Companies 15.53x
Canada Market PE Ratio Median Figure of 538 Publicly-Listed Companies 15.08x

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

** Primary Listing of Labrador Iron Ore Royalty.

TSX:LIF PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:LIF Share Price ÷ EPS (both in CAD)

= 35.25 ÷ 2.15

16.41x

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

  • Labrador Iron Ore Royalty is overvalued based on earnings compared to the CA Metals and Mining industry average.
  • Labrador Iron Ore Royalty is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Labrador Iron Ore Royalty's expected growth come at a high price?
Raw Data
TSX:LIF PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.41x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
-13.8%per year
Canada Metals and Mining Industry PEG Ratio Median Figure of 35 Publicly-Listed Metals and Mining Companies 0.89x
Canada Market PEG Ratio Median Figure of 249 Publicly-Listed Companies 1.16x

*Line of best fit is calculated by linear regression .

TSX:LIF PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.41x ÷ -13.8%

-1.19x

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

  • Labrador Iron Ore Royalty earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Labrador Iron Ore Royalty's assets?
Raw Data
TSX:LIF PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CAD CA$8.74
TSX:LIF Share Price * TSX (2019-07-19) in CAD CA$35.25
Canada Metals and Mining Industry PB Ratio Median Figure of 1,102 Publicly-Listed Metals and Mining Companies 1.4x
Canada Market PB Ratio Median Figure of 2,442 Publicly-Listed Companies 1.44x
TSX:LIF PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:LIF Share Price ÷ Book Value per Share (both in CAD)

= 35.25 ÷ 8.74

4.03x

* Primary Listing of Labrador Iron Ore Royalty.

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

  • Labrador Iron Ore Royalty is overvalued based on assets compared to the CA Metals and Mining industry average.
X
Value checks
We assess Labrador Iron Ore Royalty'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. Labrador Iron Ore Royalty has a total score of 0/6, 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.

LIF Future Performance

 How is Labrador Iron Ore Royalty expected to perform in the next 1 to 3 years based on estimates from 3 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
-13.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Labrador Iron Ore Royalty expected to grow at an attractive rate?
  • Labrador Iron Ore Royalty's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Labrador Iron Ore Royalty's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.
  • Labrador Iron Ore Royalty's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:LIF Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:LIF Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts -13.8%
TSX:LIF Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts -5.8%
Canada Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 29.5%
Canada Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 4.9%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5.7%

*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
TSX:LIF Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:LIF Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 128 110 92 1
2021-12-31 158 163 102 2
2020-12-31 161 176 125 3
2019-12-31 189 183 171 3
TSX:LIF Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-03-31 135 153 138
2018-12-31 130 149 128
2018-09-30 124 135 123
2018-06-30 120 129 109
2018-03-31 149 159 145
2017-12-31 158 167 157
2017-09-30 156 156 157
2017-06-30 144 117 134
2017-03-31 136 79 110
2016-12-31 115 63 78
2016-09-30 98 55 51
2016-06-30 102 52 48

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Labrador Iron Ore Royalty's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Labrador Iron Ore Royalty's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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
TSX:LIF Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Labrador Iron Ore Royalty Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:LIF Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 1.44 1.44 1.44 1.00
2021-12-31 1.60 1.60 1.60 1.00
2020-12-31 2.40 2.84 1.95 3.00
2019-12-31 3.09 3.55 2.67 3.00
TSX:LIF Past Financials Data
Date (Data in CAD Millions) EPS *
2019-03-31 2.15
2018-12-31 2.01
2018-09-30 1.93
2018-06-30 1.70
2018-03-31 2.26
2017-12-31 2.46
2017-09-30 2.45
2017-06-30 2.09
2017-03-31 1.72
2016-12-31 1.22
2016-09-30 0.79
2016-06-30 0.75

*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.
  • Labrador Iron Ore Royalty is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Labrador Iron Ore Royalty'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 Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada 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.
Labrador Iron Ore Royalty has a total score of 0/6, 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.

LIF Past Performance

  How has Labrador Iron Ore Royalty 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 Labrador Iron Ore Royalty'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.
  • Labrador Iron Ore Royalty's year on year earnings growth rate has been positive over the past 5 years.
  • Labrador Iron Ore Royalty's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Labrador Iron Ore Royalty's 1-year earnings growth is negative, it can't be compared to the CA Metals and Mining industry average.
Earnings and Revenue History
Labrador Iron Ore Royalty'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 Labrador Iron Ore Royalty Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:LIF Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 134.95 137.59 3.41
2018-12-31 130.30 128.49 3.50
2018-09-30 124.34 123.45 3.09
2018-06-30 120.13 109.17 2.91
2018-03-31 149.15 144.62 2.75
2017-12-31 158.25 157.28 2.94
2017-09-30 156.24 156.70 3.09
2017-06-30 144.33 134.09 3.10
2017-03-31 135.92 110.09 3.12
2016-12-31 114.87 78.17 2.74
2016-09-30 98.30 50.64 2.68
2016-06-30 101.89 48.48 2.64
2016-03-31 100.03 55.69 2.72
2015-12-31 101.45 54.66 2.73
2015-09-30 105.16 56.57 2.59
2015-06-30 103.85 66.55 2.63
2015-03-31 113.66 86.98 2.54
2014-12-31 117.09 104.13 2.39
2014-09-30 126.01 138.72 2.41
2014-06-30 131.34 150.97 2.51
2014-03-31 139.81 154.28 2.89
2013-12-31 139.08 148.83 3.22
2013-09-30 137.24 135.10 3.28
2013-06-30 133.80 116.07 3.23
2013-03-31 127.96 106.17 2.70
2012-12-31 123.84 100.03 2.41
2012-09-30 129.79 105.44 2.29

*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.
  • Labrador Iron Ore Royalty has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Labrador Iron Ore Royalty used its assets more efficiently than the CA Metals and Mining industry average last year based on Return on Assets.
  • Labrador Iron Ore Royalty has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Labrador Iron Ore Royalty'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.
Labrador Iron Ore Royalty has a total score of 4/6, 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.

LIF Health

 How is Labrador Iron Ore Royalty'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 Labrador Iron Ore Royalty's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Labrador Iron Ore Royalty is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Labrador Iron Ore Royalty's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Labrador Iron Ore Royalty'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.
  • Low level of unsold assets.
  • Labrador Iron Ore Royalty has no debt, it does not need to be covered by short term assets.
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 Labrador Iron Ore Royalty Company Filings, last reported 3 months ago.

TSX:LIF Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 564.05 0.00 67.06
2018-12-31 590.85 0.00 80.50
2018-09-30 586.32 0.00 62.43
2018-06-30 562.19 0.00 18.67
2018-03-31 581.41 0.00 25.58
2017-12-31 573.59 0.00 40.50
2017-09-30 568.11 0.00 64.94
2017-06-30 588.42 0.00 49.70
2017-03-31 594.66 0.00 36.12
2016-12-31 583.85 0.00 23.94
2016-09-30 560.66 0.00 11.67
2016-06-30 555.80 0.00 12.52
2016-03-31 563.78 0.00 20.95
2015-12-31 568.97 0.00 24.46
2015-09-30 572.87 0.00 20.49
2015-06-30 570.29 0.00 24.28
2015-03-31 571.26 0.00 27.79
2014-12-31 577.72 0.00 34.96
2014-09-30 590.69 0.00 49.03
2014-06-30 594.18 0.00 34.09
2014-03-31 584.37 0.00 30.46
2013-12-31 583.33 0.00 52.61
2013-09-30 578.92 0.00 14.49
2013-06-30 562.23 0.00 8.16
2013-03-31 540.01 0.00 17.03
2012-12-31 544.51 0.00 26.92
2012-09-30 289.96 248.00 24.99
  • Labrador Iron Ore Royalty has no debt.
  • Labrador Iron Ore Royalty had no debt 5 years ago.
  • Labrador Iron Ore Royalty has no debt, it does not need to be covered by operating cash flow.
  • Labrador Iron Ore Royalty has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Labrador Iron Ore Royalty'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. Labrador Iron Ore Royalty has a total score of 5/6, 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.

LIF Dividends

 What is Labrador Iron Ore Royalty'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
8.79%
Current annual income from Labrador Iron Ore Royalty dividends. Estimated to be 7.68% next year.
If you bought CA$2,000 of Labrador Iron Ore Royalty shares you are expected to receive CA$176 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?
  • Labrador Iron Ore Royalty's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.06%).
  • Labrador Iron Ore Royalty's dividend is above the markets top 25% of dividend payers in Canada (5.76%).
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
TSX:LIF 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 3 Analyst Estimates (S&P Global) See Below
Canada Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 29 Stocks 1.1%
Canada Market Average Dividend Yield Market Cap Weighted Average of 337 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

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

TSX:LIF Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 1.60 1.00
2021-12-31 2.25 2.00
2020-12-31 2.83 2.00
2019-12-31 3.60 2.00
TSX:LIF Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-06-18 3.100 8.993
2019-03-07 2.450 7.938
2018-12-14 1.750 6.387
2018-09-14 1.700 6.096
2018-06-19 2.150 8.776
2018-03-08 2.500 11.000
2017-12-14 1.000 3.799
2017-09-15 1.000 4.670
2017-06-12 1.000 5.727
2017-03-02 1.000 5.559
2016-12-13 1.000 5.279
2016-09-15 1.000 6.628
2016-06-14 1.000 7.456
2016-03-03 1.000 8.013
2015-12-11 1.000 10.625
2015-09-16 1.100 7.549
2015-06-11 1.350 9.453
2015-03-05 1.500 10.193
2014-12-12 1.650 9.228
2014-09-17 2.050 10.488
2014-06-12 1.925 6.406
2014-03-03 1.900 6.234
2013-12-11 1.875 5.694
2013-09-17 1.500 4.774
2013-06-12 1.500 4.876
2013-03-01 1.500 4.500
2012-12-11 1.500 4.370
2012-09-13 1.500 5.027
2012-06-12 1.875 5.894
2012-02-27 2.000 5.799
2011-12-07 2.875 7.763
2011-09-20 2.125 6.355
2011-05-30 1.625 4.597
2011-03-03 1.500 4.020
2010-12-10 1.000 2.854
2010-09-16 1.000 3.356
2010-06-08 1.000 4.233
2010-03-03 1.000 4.022
2009-12-11 1.000 4.363
2009-09-10 1.000 5.080
2009-06-11 2.250 13.011
2009-02-27 2.500 18.077
2008-12-12 2.500 21.767
2008-09-11 2.500 17.640

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Labrador Iron Ore Royalty's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (0.7x coverage).
X
Income/ dividend checks
We assess Labrador Iron Ore Royalty's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - 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 Labrador Iron Ore Royalty afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Labrador Iron Ore Royalty has a total score of 4/6, see the detailed checks below.


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

LIF Management

 What is the CEO of Labrador Iron Ore Royalty'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
John Tuer
COMPENSATION CA$169,238
TENURE AS CEO 0.3 years
CEO Bio

Mr. John F. Tuer is President and CEO of Labrador Iron Ore Royalty Corporation since March 7, 2019. Mr. Tuer has been a Director of Labrador Iron Ore Royalty Corporation since December 2017 and was its Executive Vice President and Secretary. He is an experienced investment banker and lawyer. He has over 20 years experience in the securities industry and is highly regarded in the merger and acquisition advisory business.

CEO Compensation
  • John's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • John's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Labrador Iron Ore Royalty management team in years:

0.5
Average Tenure
  • The average tenure for the Labrador Iron Ore Royalty management team is less than 2 years, this suggests a new team.
Management Team

John Tuer

TITLE
President
COMPENSATION
CA$169K
TENURE
0.3 yrs

Alan Thomas

TITLE
Chief Financial Officer
COMPENSATION
CA$240K
AGE
76
TENURE
13.5 yrs

James McCartney

TITLE
Executive Vice President
COMPENSATION
CA$288K
AGE
81
TENURE
0.5 yrs

Sandra Rosch

TITLE
Executive VP & Director
COMPENSATION
CA$240K
TENURE
4 yrs

Robert Hansen

TITLE
Secretary
TENURE
0.5 yrs
Board of Directors Tenure

Average tenure of the Labrador Iron Ore Royalty board of directors in years:

3.4
Average Tenure
  • The tenure for the Labrador Iron Ore Royalty board of directors is about average.
Board of Directors

William McNeil

TITLE
Chairman
COMPENSATION
CA$444K
TENURE
0.2 yrs

John Tuer

TITLE
President
COMPENSATION
CA$169K
TENURE
1.6 yrs

Sandra Rosch

TITLE
Executive VP & Director
COMPENSATION
CA$240K
TENURE
5.2 yrs

William Corcoran

TITLE
Director
COMPENSATION
CA$91K
TENURE
24.5 yrs

Mark Fuller

TITLE
Lead Director
COMPENSATION
CA$116K
TENURE
0.2 yrs

Patricia Volker

TITLE
Director
COMPENSATION
CA$73K
AGE
61
TENURE
5.2 yrs
Who owns this company?
Recent Insider Trading
  • Labrador Iron Ore Royalty individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
26. Jun 19 Sell Duncan Newton Jackman Individual 25. Jun 19 25. Jun 19 -3,000 CA$34.00 CA$-102,007
25. Mar 19 Buy John Tuer Individual 25. Mar 19 25. Mar 19 10,000 CA$28.86 CA$288,600
22. Mar 19 Buy William McNeil Individual 21. Mar 19 21. Mar 19 3,000 CA$29.09 CA$87,270
03. Jan 19 Buy Patricia Volker Individual 02. Jan 19 02. Jan 19 2,000 CA$24.00 CA$48,000
20. Jul 18 Buy Mark Fuller Individual 20. Jul 18 20. Jul 18 3,000 CA$24.05 CA$72,147
X
Management checks
We assess Labrador Iron Ore Royalty'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. Labrador Iron Ore Royalty 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.

LIF News

Simply Wall St News

Is Labrador Iron Ore Royalty Corporation's (TSE:LIF) 19% Better Than Average?

To keep the lesson grounded in practicality, we'll use ROE to better understand Labrador Iron Ore Royalty Corporation (TSE:LIF). … Our data shows Labrador Iron Ore Royalty has a return on equity of 19% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Labrador Iron Ore Royalty Corporation (TSE:LIF) A Smart Pick For Income Investors?

Over the past 10 years, Labrador Iron Ore Royalty Corporation (TSE:LIF) has returned an average of 7.00% per year to shareholders in terms of dividend yield. … Let's take a look at Labrador Iron Ore Royalty in more detail. … Check out our latest analysis for Labrador Iron Ore Royalty

Simply Wall St -

What You Must Know About Labrador Iron Ore Royalty Corporation's (TSE:LIF) Major Investors

In this article, I will take a quick look at Labrador Iron Ore Royalty Corporation’s (TSE:LIF) recent ownership structure – an unconventional investing subject, but an important one. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … Therefore, it is beneficial for us to examine LIF's ownership structure in more detail.

Simply Wall St -

What You Must Know About Labrador Iron Ore Royalty Corporation's (TSE:LIF) ROE

and want a simplistic look at the return on Labrador Iron Ore Royalty Corporation (TSE:LIF) stock. … Labrador Iron Ore Royalty Corporation (TSE:LIF) outperformed the steel industry on the basis of its ROE – producing a higher 24.87% relative to the peer average of 11.25% over the past 12 months. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden

Simply Wall St -

Is Labrador Iron Ore Royalty Corporation (TSE:LIF) Potentially Underrated?

Labrador Iron Ore Royalty Corporation (TSE:LIF) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of LIF, it.

Simply Wall St -

Materials Dividend Stocks That Will Add Value To Your Portfolio

Labrador Iron Ore Royalty Corporation (TSX:LIF) LIF has a large dividend yield of 11.16% and their payout ratio stands at 40.69% , with the expected payout in three years hitting 116.15%. … TSX:OSB Historical Dividend Yield Mar 25th 18 Methanex Corporation (TSX:MX) MX has a solid dividend yield of 2.13% and is paying out 32.25% of profits as dividends. … TSX:MX Historical Dividend Yield Mar 25th 18 For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.

Simply Wall St -

Will Labrador Iron Ore Royalty Corporation's (TSE:LIF) Earnings Grow In The Next Couple Of Years?

The latest earnings announcement Labrador Iron Ore Royalty Corporation's (TSX:LIF) released in December 2017 showed that the business benefited from a significant tailwind, more than doubling its earnings from the prior year. … Investors may find it useful to understand how market analysts perceive Labrador Iron Ore Royalty's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. … Check out our latest analysis for Labrador Iron Ore Royalty Analysts' outlook for next year seems pessimistic, with earnings declining by -6.38%.

Simply Wall St -

Labrador Iron Ore Royalty Corporation (TSE:LIF): Set To Experience A Decrease In Earnings?

In December 2017, Labrador Iron Ore Royalty Corporation (TSX:LIF) announced its latest earnings update. … Below is a brief commentary around Labrador Iron Ore Royalty's earnings outlook going forward, which may give you a sense of market sentiment for the company. … View our latest analysis for Labrador Iron Ore Royalty What can we expect from Labrador Iron Ore Royalty in the longer term?

Simply Wall St -

What You Must Know About Labrador Iron Ore Royalty Corporation's (TSE:LIF) ROE

For now, let’s just look at the cost of equity number for Labrador Iron Ore Royalty, which is 17.56%. … This means Labrador Iron Ore Royalty returns enough to cover its own cost of equity, with a buffer of 10.02%. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity TSX:LIF Last Perf Mar 4th 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

Simply Wall St -

Breaking Down Labrador Iron Ore Royalty Corporation's (TSE:LIF) Ownership Structure

View our latest analysis for Labrador Iron Ore Royalty TSX:LIF Ownership_summary Feb 25th 18 Institutional Ownership Institutions account for 29.71% of LIF's outstanding shares, a significant enough holding to move stock prices if they start buying and selling in large quantities, especially when there are relatively small amounts of shares available on the market to trade. … Although LIF has a high institutional ownership, such stock moves, in the short-term, are more commonly linked to a particular type of active institutional investors – hedge funds. … General Public Ownership The general public holds a substantial 70.22% stake in LIF, making it a highly popular stock among retail investors.

Simply Wall St -

LIF Company Info

Description

Labrador Iron Ore Royalty Corporation, together with its subsidiary, Hollinger-Hanna Limited, owns a 15.10% equity interest in Iron Ore Company of Canada (IOC) that operates an iron mine near Labrador City, Newfoundland and Labrador. IOC engages in the production and sale of iron ore pellets and concentrates in North America, Europe, the Middle East, and the Asia-Pacific region. The company was formerly known as Labrador Iron Ore Royalty Income Fund and changed its name to Labrador Iron Ore Royalty Corporation in July 2010. Labrador Iron Ore Royalty Corporation was founded in 1995 and is based in Toronto, Canada.

Details
Name: Labrador Iron Ore Royalty Corporation
LIF
Exchange: TSX
Founded: 1995
CA$2,256,000,000
64,000,000
Website: http://www.labradorironore.com
Address: Labrador Iron Ore Royalty Corporation
STN Adelaide,
PO Box 957,
Toronto,
Ontario, M5C 2K3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX LIF Common Shares The Toronto Stock Exchange CA CAD 29. Nov 1996
OTCPK LIFZ.F Common Shares Pink Sheets LLC US USD 29. Nov 1996
DB L9O Common Shares Deutsche Boerse AG DE EUR 29. Nov 1996
Number of employees
Current staff
Staff numbers
0
Labrador Iron Ore Royalty employees.
Industry
Steel
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 23:52
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/05/13
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


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.