Ratings Surperformance

Trader
Investor
Global
Quality
ESG MSCI
AA

Ratings ESG MSCI

Ratings Lynas Rare Earths Limited: Strengths and Weaknesses

  • From a short-term investment perspective, the company presents a deteriorated fundamental configuration.
  • The company has a good ESG score relative to its sector, according to MSCI.
Highlights: Lynas Rare Earths Limited
  • The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
  • Thanks to a sound financial situation, the firm has significant leeway for investment.
  • The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
  • Consensus analysts have strongly revised their opinion of the company over the past 12 months.
Weaknesses: Lynas Rare Earths Limited
  • The potential for earnings per share (EPS) growth in the coming years appears limited according to current analyst estimates.
  • The company does not generate enough profits, which is an alarming weak point.
  • The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 24.17 times its estimated earnings per share for the ongoing year.
  • Based on current prices, the company has particularly high valuation levels.
  • The company appears highly valued given the size of its balance sheet.
  • The valuation of the company is particularly high given the cash flows generated by its activity.
  • The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
  • The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.
  • For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
  • The average price target of analysts who are interested in the stock has been significantly revised downwards over the last four months.
  • Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
  • The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.
  • Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.

Rating Financials

Lynas Rare Earths Limited SectorAustralia

Fundamentals

Growth

Revenue growth

EPS growth

FCF growth

Profitability

EBITDA Margin

EBIT Margin

Net Margin

Capital Efficiency

ROA

ROCE

ROE

Financial Health

Gearing

Leverage

Capital Intensity

Balance sheet growth

Long Term balance sheet growth

-

Long term revenue growth

Long term EPS growth

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Rating Valuation

Lynas Rare Earths Limited SectorAustralia

Global Valuation

Enterprise Value

EV/Revenue

EV/EBITDA

EV/FCF

Equity Valuation

P/E

PBR

Dividend Yield

EV/EBIT

CAPEX/Revenue

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Rating Consensus

Lynas Rare Earths Limited SectorAustralia

Consensus

Analysts' buy/sell recommendations

Analysts' recommendations evolution (1 year)

Analysts' recommendations evolution (4 months)

Analysts' target price

Analysts' target price evolution (1 year)

Analysts' target price evolution (4 months)

Analysts' recommendations evolution (7 days)

Target Price evolution (7 days)

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Rating Business Predictability

Lynas Rare Earths Limited SectorAustralia

Visibility

Analysts' coverage

Financial estimates divergence

Analysts' recommendations divergence

Analysts' Target price divergence

Surprise rates

Rating Revisions

Lynas Rare Earths Limited SectorAustralia

Financial revisions

Revenue revisions (1 year)

Revenue revisions (4 months)

EPS revisions (1 year)

EPS revisions (4 months)

EPS revisions (7 days)

Revenue revisions (7 days)

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Capi.($) Investor ESG MSCI Fundamentals Financial revisions Global Valuation Visibility Consensus
9.58B
AA
20.42B
AA
19.08B -
CCC
- -
11.52B
A
-
10.69B
A
8.9B -
BBB
- -
8.09B
BBB
-
7.13B
BBB
6.24B
BBB
6.08B - - - - -
Average 10.77B
A
Weighted average by Cap.
A
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