OTCPK:LYSC.F

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Exceptional growth potential with mediocre balance sheet.

Risks

  • Lynas has significant price volatility in the past 3 months.
  • Lynas is covered by less than 3 analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-10.0%

OTCPK:LYSC.F

-3.9%

US Metals and Mining

-1.0%

US Market


1 Year Return

13.8%

OTCPK:LYSC.F

-15.5%

US Metals and Mining

-0.4%

US Market

LYSC.F outperformed the Metals and Mining industry which returned -14.9% over the past year.

LYSC.F outperformed the Market in United States of America which returned -1.7% over the past year.


Share holder returns

LYSC.FIndustryMarket
7 Day-10.0%-3.9%-1.0%
30 Day-6.7%-8.7%-3.3%
90 Day34.1%0.06%0.4%
1 Year13.8%13.8%-13.0%-15.5%1.8%-0.4%
3 Year3173.1%3173.1%-3.0%-7.9%39.4%30.4%
5 Year1101.9%1101.9%-17.9%-24.1%54.2%37.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

85.09x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Lynas's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Lynas's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Lynas is overvalued based on earnings compared to the US Metals and Mining industry average.

Lynas is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Lynas is poor value based on expected growth next year.


Price Based on Value of Assets

Lynas is overvalued based on assets compared to the US Metals and Mining industry average.


Next Steps

Future Growth

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

77.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Lynas's revenue is expected to grow significantly at over 20% yearly.

Lynas's earnings are expected to grow significantly at over 20% yearly.

Lynas's revenue growth is expected to exceed the United States of America market average.

Lynas's earnings growth is expected to exceed the United States of America market average.

Lynas's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Lynas is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Lynas performed over the past 5 years?

66.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 US Metals and Mining industry average.


Return on Equity

Lynas has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Lynas used its assets less efficiently than the US Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

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).


Next Steps

Financial Health

How is Lynas's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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 (87.4% 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).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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

2.15%

Expected Dividend Yield


Dividend Yield and Payments Analysis

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.

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

Unable to calculate sustainability of dividends as Lynas has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3x coverage).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Amanda Lacaze (59yo)

5.2yrs

Tenure

AU$3,727,276

Compensation

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


CEO Compensation Analysis

Amanda's remuneration is lower than average for companies of similar size in United States of America.

Amanda's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

5.0yrs

Average Tenure

The average tenure for the Lynas management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.6yrs

Average Tenure

64yo

Average Age

The tenure for the Lynas board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$11,806,78502 Aug 19
Greencape Capital Pty Ltd
EntityCompany
Shares7,686,509
Max PriceUS$1.54
BuyUS$3,542,50402 Aug 19
Greencape Capital Pty Ltd
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Max PriceUS$1.27
BuyUS$49,275,91015 Jul 19
New York Life Investment Management LLC
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Max PriceUS$1.86
SellUS$156,92215 Jul 19
New York Life Investment Management LLC
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Max PriceUS$1.96
BuyUS$013 Jun 19
FIL Limited
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Max PriceUS$1.85
SellUS$013 Jun 19
FIL Limited
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Shares10,656,726
Max PriceUS$2.13
SellUS$14,641,90916 Apr 19
FIL Limited
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Shares9,560,777
Max PriceUS$1.53
BuyUS$3,718,30316 Apr 19
FIL Limited
EntityCompany
Shares2,439,737
Max PriceUS$1.52
BuyUS$657,44403 Apr 19
Credit Suisse Asset Management (Switzerland)
EntityCompany
Shares441,232
Max PriceUS$1.49
SellUS$304,77112 Mar 19
FIL Limited
EntityCompany
Shares237,575
Max PriceUS$1.28
BuyUS$9,179,33712 Mar 19
FIL Limited
EntityCompany
Shares7,244,264
Max PriceUS$1.27
BuyUS$7,976,31405 Mar 19
Greencape Capital Pty Ltd
EntityCompany
Shares6,934,900
Max PriceUS$1.15
SellUS$39,04505 Mar 19
Greencape Capital Pty Ltd
EntityCompany
Shares30,000
Max PriceUS$1.30
BuyUS$22,99601 Mar 19
Grant Murdoch
EntityIndividual
Role
Member of the Board of Directors
Shares20,000
Max PriceUS$1.15
BuyUS$35,55701 Mar 19
John Humphrey
EntityIndividual
Role
Member of the Board of Directors
Shares30,000
Max PriceUS$1.19
BuyUS$30,11801 Mar 19
Philippe Etienne
EntityIndividual
Role
Member of the Board of Directors
Shares25,000
Max PriceUS$1.20
BuyUS$35,18501 Mar 19
Kathleen Conlon
EntityIndividual
Role
Member of the Board of Directors
Shares30,000
Max PriceUS$1.17
BuyUS$14,99921 Dec 18
Challenger Limited
EntityCompany
Shares10,900
Max PriceUS$1.40
BuyUS$18,585,11221 Dec 18
Greencape Capital Pty Ltd
EntityCompany
Shares15,259,276
Max PriceUS$1.22
SellUS$11,975,45021 Dec 18
Greencape Capital Pty Ltd
EntityCompany
Shares7,693,452
Max PriceUS$1.56
SellUS$541,53510 Dec 18
FIL Limited
EntityCompany
Shares312,998
Max PriceUS$1.73
BuyUS$5,067,75410 Dec 18
FIL Limited
EntityCompany
Shares3,065,343
Max PriceUS$1.65
BuyUS$32,90230 Oct 18
Philippe Etienne
EntityIndividual
Role
Member of the Board of Directors
Shares25,000
Max PriceUS$1.32
BuyUS$70,86830 Oct 18
Richard Harding
EntityIndividual
Role
Chairman of the Board
Shares53,994
Max PriceUS$1.31
BuyUS$65,80430 Oct 18
Grant Murdoch
EntityIndividual
Role
Member of the Board of Directors
Shares50,000
Max PriceUS$1.32
SellUS$668,30317 Oct 18
FIL Limited
EntityCompany
Shares556,959
Max PriceUS$1.20
BuyUS$11,825,46817 Oct 18
FIL Limited
EntityCompany
Shares8,237,231
Max PriceUS$1.44
BuyUS$11,49019 Sep 18
Challenger Limited
EntityCompany
Shares7,993
Max PriceUS$1.44
BuyUS$9,487,26619 Sep 18
Greencape Capital Pty Ltd
EntityCompany
Shares6,624,700
Max PriceUS$1.43
BuyUS$32,851,57611 Sep 18
FIL Limited
EntityCompany
Shares15,924,485
Max PriceUS$2.06

Ownership Breakdown


Management Team

  • Amanda Lacaze (59yo)

    MD, CEO & Director

    • Tenure: 5.2yrs
    • Compensation: A$3.73m
  • Andrew Arnold

    General Counsel & Company Secretary

    • Tenure: 11.1yrs
    • Compensation: A$962.35k
  • Ivo Polovineo (68yo)

    Joint Company Secretary

    • Tenure: 4.8yrs
    • Compensation: A$68.33k
  • Kam Leung

    Vice President of Production

    • Tenure: 5.0yrs
    • Compensation: A$1.07m
  • Mashal Ahmad

    Vice President of Malaysia

    • Tenure: 6.8yrs
    • Compensation: A$951.35k
  • Pol Le Roux

    Vice President of Sales & Marketing

    • Tenure: 8.8yrs
    • Compensation: A$1.26m
  • Mimi Afza

    Vice President of People & Culture

    • Tenure: 4.8yrs
    • Compensation: A$655.00k
  • Gaudenz Sturzenegger

    Chief Financial Officer

    • Tenure: 4.8yrs
    • Compensation: A$1.16m
  • Alex Logan

    Metallurgy Manager

  • Grant McAuliffe

    General Manager of Lynas Advanced Materials Plant

    • Tenure: 1.1yrs

Board Members

  • Mike Harding (70yo)

    Non-Executive Chairman

    • Tenure: 4.6yrs
    • Compensation: A$288.80k
  • John Humphrey (64yo)

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: A$125.93k
  • Kathleen Conlon (55yo)

    Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: A$149.98k
  • Philippe Etienne (64yo)

    Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: A$146.46k
  • Amanda Lacaze (59yo)

    MD, CEO & Director

    • Tenure: 5.6yrs
    • Compensation: A$3.73m
  • Grant Murdoch (67yo)

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: A$92.54k

Company Information

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


Key Information

  • Name: Lynas Corporation Limited
  • Ticker: LYSC.F
  • Exchange: OTCPK
  • Founded: 1983
  • Industry: diversified metals and mining
  • Sector: materials
  • Market Cap: AU$1.817b
  • Listing Market Cap: AU$1.232b
  • Shares outstanding: 691.06m
  • Website: Click here

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LYCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
LYIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
LYSC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
0A2NLSE (London Stock Exchange)YesOrdinary SharesGBAUDJan 1992
LYSD.YOTCPK (Pink Sheets LLC)SPON ADR EACH REP 1 ORD SHS (POST SPLT)USUSDNov 2008
LYICDB (Deutsche Boerse AG)SPON ADR EACH REP 1 ORD SHS (POST SPLT)DEEURNov 2008

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 00:00
End of Day Share Price2019/08/16 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.