DB:L9O

Stock Analysis Report

Labrador Iron Ore Royalty

Executive Summary

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.

Snowflake

Fundamentals

Outstanding track record with excellent balance sheet and pays a dividend.

Risks

  • Labrador Iron Ore Royalty has significant price volatility in the past 3 months.

Share Price & News

How has Labrador Iron Ore Royalty's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.7%

DB:L9O

-2.7%

DE Metals and Mining

-0.7%

DE Market


1 Year Return

10.6%

DB:L9O

-48.8%

DE Metals and Mining

-10.8%

DE Market

L9O outperformed the Metals and Mining industry which returned -48.2% over the past year.

L9O outperformed the Market in Germany which returned -10% over the past year.


Share holder returns

L9OIndustryMarket
7 Day0.7%-2.7%-0.7%
30 Day-25.1%-12.5%-3.9%
90 Day-14.6%-22.3%-4.3%
1 Year23.5%10.6%-48.0%-48.8%-8.0%-10.8%
3 Year169.9%99.0%-45.4%-47.2%9.8%0.3%
5 Year31.8%-17.0%-43.0%-46.0%24.0%6.8%

Price Volatility Vs. Market

How volatile is Labrador Iron Ore Royalty's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Labrador Iron Ore Royalty undervalued based on future cash flows and its price relative to the stock market?

25%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Labrador Iron Ore Royalty's share price is below the future cash flow value, and at a moderate discount (> 20%).

Labrador Iron Ore Royalty's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Labrador Iron Ore Royalty is good value based on earnings compared to the Europe Metals and Mining industry average.

Labrador Iron Ore Royalty is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

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

Labrador Iron Ore Royalty is overvalued based on assets compared to the DE Metals and Mining industry average.


Next Steps

Future Growth

How is Labrador Iron Ore Royalty expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

-13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Labrador Iron Ore Royalty's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

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 revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.

Labrador Iron Ore Royalty's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.

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 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Labrador Iron Ore Royalty is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Labrador Iron Ore Royalty performed over the past 5 years?

12.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 exceeds its 5-year average (84.9% vs 12.3%)

Labrador Iron Ore Royalty's earnings growth has exceeded the Europe Metals and Mining industry average in the past year (84.9% vs -5.8%).


Return on Equity

Labrador Iron Ore Royalty has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Labrador Iron Ore Royalty used its assets more efficiently than the Europe Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Labrador Iron Ore Royalty has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Labrador Iron Ore Royalty's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Labrador Iron Ore Royalty has no debt.

Labrador Iron Ore Royalty currently has no debt however we can't compare to 5 years ago as we have no data for that period.

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.


Balance Sheet

Low level of unsold assets.

Labrador Iron Ore Royalty has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

What is Labrador Iron Ore Royalty's current dividend yield, its reliability and sustainability?

9.79%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Labrador Iron Ore Royalty's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.52%).

Labrador Iron Ore Royalty's dividend is above the markets top 25% of dividend payers in Germany (4.2%).

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

Dividends paid are well covered by earnings (3.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (0.8x coverage).


Next Steps

Management

What is the CEO of Labrador Iron Ore Royalty's salary, the management and board of directors tenure and is there insider trading?

0.6yrs

Average management tenure


CEO

John Tuer 0

0.4yrs

Tenure

CA$169,238

Compensation

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 Exe ...


Management Age and Tenure

0.6yrs

Average Tenure

The average tenure for the Labrador Iron Ore Royalty management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.5yrs

Average Tenure

The tenure for the Labrador Iron Ore Royalty board of directors is about average.


Insider Trading

Labrador Iron Ore Royalty individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$68,05626 Jun 19
Duncan Newton Jackman
EntityIndividual
Shares3,000
Max PriceCA$22.69
BuyCA$190,02825 Mar 19
John Tuer
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceCA$19.00
BuyCA$57,42922 Mar 19
William McNeil
EntityIndividual
Role
Chairman of the Board
Chairman
Shares3,000
Max PriceCA$19.14
BuyCA$31,11203 Jan 19
Patricia Volker
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceCA$15.56

Ownership Breakdown


Management Team

  • James McCartney (81yo)

    Executive Vice President

    • Tenure: 0.6yrs
    • Compensation: CA$287.51k
  • Alan Thomas (76yo)

    Chief Financial Officer

    • Tenure: 13.6yrs
    • Compensation: CA$240.47k
  • Sandra Rosch

    Executive VP & Director

    • Tenure: 5.3yrs
    • Compensation: CA$240.47k
  • John Tuer

    President

    • Tenure: 0.4yrs
    • Compensation: CA$169.24k
  • Robert Hansen

    Secretary

    • Tenure: 0.6yrs

Board Members

  • William Corcoran

    Director

    • Tenure: 24.6yrs
    • Compensation: CA$91.40k
  • Mark Fuller

    Lead Director

    • Tenure: 0.3yrs
    • Compensation: CA$116.40k
  • Sandra Rosch

    Executive VP & Director

    • Tenure: 5.3yrs
    • Compensation: CA$240.47k
  • Patricia Volker (61yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: CA$72.80k
  • William McNeil

    Chairman

    • Tenure: 0.3yrs
    • Compensation: CA$444.34k
  • John Tuer

    President

    • Tenure: 0.4yrs
    • Compensation: CA$169.24k

Company Information

Labrador Iron Ore Royalty Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Labrador Iron Ore Royalty Corporation
  • Ticker: L9O
  • Exchange: DB
  • Founded: 1995
  • Industry: Steel
  • Sector: Materials
  • Market Cap: CA$1.709b
  • Listing Market Cap: CA$1.156b
  • Shares outstanding: 64.00m
  • Website: https://www.labradorironore.com

Location

  • Labrador Iron Ore Royalty Corporation
  • 26th Floor
  • 40 King Street West
  • Toronto
  • Ontario
  • M5W 2X6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LIFTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 1996
LIFZ.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 1996
L9ODB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1996

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 21:40
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.