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LUN

Lundin Mining TSX:LUN Stock Report

Last Price

CA$8.48

Market Cap

CA$6.6b

7D

-9.8%

1Y

-25.0%

Updated

26 Jun, 2022

Data

Company Financials +
LUN fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends4/6

LUN Stock Overview

Lundin Mining Corporation, a diversified base metals mining company, engages in the exploration, development, and mining of mineral properties in Brazil, Chile, Portugal, Sweden, and the United States.

Lundin Mining Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Lundin Mining
Historical stock prices
Current Share PriceCA$8.48
52 Week HighCA$14.00
52 Week LowCA$8.06
Beta1.62
1 Month Change-22.42%
3 Month Change-34.62%
1 Year Change-25.02%
3 Year Change17.61%
5 Year Change15.06%
Change since IPO371.12%

Recent News & Updates

Shareholder Returns

LUNCA Metals and MiningCA Market
7D-9.8%-4.8%0.3%
1Y-25.0%-12.6%-4.1%

Return vs Industry: LUN underperformed the Canadian Metals and Mining industry which returned -12.6% over the past year.

Return vs Market: LUN underperformed the Canadian Market which returned -4.1% over the past year.

Price Volatility

Is LUN's price volatile compared to industry and market?
LUN volatility
LUN Average Weekly Movement6.5%
Metals and Mining Industry Average Movement10.8%
Market Average Movement9.9%
10% most volatile stocks in CA Market17.2%
10% least volatile stocks in CA Market4.3%

Stable Share Price: LUN is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: LUN's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19944,567Peter Rockandelhttps://www.lundinmining.com

Lundin Mining Corporation, a diversified base metals mining company, engages in the exploration, development, and mining of mineral properties in Brazil, Chile, Portugal, Sweden, and the United States. It primarily produces copper, zinc, nickel, and gold, as well as lead, silver, and other metals. The company holds 100% interests in the Chapada mine located in Brazil; the Neves-Corvo mine located in Portugal; the Eagle mine located in the United States; and the Zinkgruvan mine located in Sweden.

Lundin Mining Fundamentals Summary

How do Lundin Mining's earnings and revenue compare to its market cap?
LUN fundamental statistics
Market CapUS$5.12b
Earnings (TTM)US$990.24m
Revenue (TTM)US$3.64b

5.2x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LUN income statement (TTM)
RevenueUS$3.64b
Cost of RevenueUS$1.52b
Gross ProfitUS$2.12b
Other ExpensesUS$1.13b
EarningsUS$990.24m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 27, 2022

Earnings per share (EPS)1.27
Gross Margin58.34%
Net Profit Margin27.22%
Debt/Equity Ratio0.08%

How did LUN perform over the long term?

See historical performance and comparison

Dividends

5.5%

Current Dividend Yield

19%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is LUN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LUN?

Other financial metrics that can be useful for relative valuation.

LUN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA2.7x
PEG Ratio-0.8x

Price to Earnings Ratio vs Peers

How does LUN's PE Ratio compare to its peers?

LUN PE Ratio vs Peers
The above table shows the PE ratio for LUN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.8x

Price-To-Earnings vs Peers: LUN is good value based on its Price-To-Earnings Ratio (5.2x) compared to the peer average (8.8x).


Price to Earnings Ratio vs Industry

How does LUN's PE Ratio compare vs other companies in the Canadian Metals and Mining Industry?

Price-To-Earnings vs Industry: LUN is good value based on its Price-To-Earnings Ratio (5.2x) compared to the Canadian Metals and Mining industry average (11x)


Price to Earnings Ratio vs Fair Ratio

What is LUN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LUN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.2x
Fair PE Ratio10x

Price-To-Earnings vs Fair Ratio: LUN is good value based on its Price-To-Earnings Ratio (5.2x) compared to the estimated Fair Price-To-Earnings Ratio (10x).


Share Price vs Fair Value

What is the Fair Price of LUN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LUN (CA$8.48) is trading below our estimate of fair value (CA$73.85)

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


Price to Earnings Growth Ratio

PEG Ratio: LUN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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Future Growth

How is Lundin Mining forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-6.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LUN's earnings are forecast to decline over the next 3 years (-6.4% per year).

Earnings vs Market: LUN's earnings are forecast to decline over the next 3 years (-6.4% per year).

High Growth Earnings: LUN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LUN's revenue is expected to decline over the next 3 years (-1.8% per year).

High Growth Revenue: LUN's revenue is forecast to decline over the next 3 years (-1.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LUN's Return on Equity is forecast to be low in 3 years time (10.9%).


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Past Performance

How has Lundin Mining performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


23.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LUN has high quality earnings.

Growing Profit Margin: LUN's current net profit margins (27.2%) are higher than last year (17.7%).


Past Earnings Growth Analysis

Earnings Trend: LUN's earnings have grown significantly by 23.4% per year over the past 5 years.

Accelerating Growth: LUN's earnings growth over the past year (138.3%) exceeds its 5-year average (23.4% per year).

Earnings vs Industry: LUN earnings growth over the past year (138.3%) exceeded the Metals and Mining industry -5.8%.


Return on Equity

High ROE: LUN's Return on Equity (21%) is considered high.


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Financial Health

How is Lundin Mining's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LUN's short term assets ($1.9B) exceed its short term liabilities ($901.8M).

Long Term Liabilities: LUN's short term assets ($1.9B) exceed its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: LUN has more cash than its total debt.

Reducing Debt: LUN's debt to equity ratio has reduced from 26.2% to 0.08% over the past 5 years.

Debt Coverage: LUN's debt is well covered by operating cash flow (37472.3%).

Interest Coverage: LUN's interest payments on its debt are well covered by EBIT (42.8x coverage).


Balance Sheet


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Dividend

What is Lundin Mining current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


5.48%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LUN's dividend (5.48%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: LUN's dividend (5.48%) is in the top 25% of dividend payers in the Canadian market (5.33%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, LUN has been paying a dividend for less than 10 years.

Growing Dividend: LUN's dividend payments have increased, but the company has only paid a dividend for 6 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (19.5%), LUN's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (26%), LUN's dividend payments are well covered by cash flows.


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Management

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

3.6yrs

Average management tenure


CEO

Peter Rockandel

0.58

Tenure

US$1,794,018

Compensation

Mr. Peter Rockandel has been the President and Chief Executive Officer of Lundin Mining Corporation since November 1, 2021 and has been its Director since January 1, 2022. He served as a Senior Vice Presid...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD1.79M) is below average for companies of similar size in the Canadian market ($USD4.78M).

Compensation vs Earnings: Peter's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: LUN's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: LUN's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: LUN 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 5.5%.


Top Shareholders

Company Information

Lundin Mining Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Lundin Mining Corporation
  • Ticker: LUN
  • Exchange: TSX
  • Founded: 1994
  • Industry: Copper
  • Sector: Materials
  • Implied Market Cap: CA$6.609b
  • Shares outstanding: 779.39m
  • Website: https://www.lundinmining.com

Number of Employees


Location

  • Lundin Mining Corporation
  • 150 King Street West
  • Suite 2200
  • Toronto
  • Ontario
  • M5H 1J9
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.