Champion Iron (CIA) AI Stock Analysis

• Market Cap: AU$3.27B
• Dividend Yield: 3.66%
• Average Volume (3M): 1.90M
• Price to Earnings (P/E): 23.9
• Beta (1Y): 1.69
• Revenue Growth: 0.40%
• EPS Growth: -53.09%
• Country: AU
• Employees: 1,014
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.12
• Shares Outstanding: 533,251,000
• 10 Day Avg. Volume: 1,878,628
• 30 Day Avg. Volume: 1,903,879
• PEG Ratio: 1.16
• Price to Book (P/B): 2.49
• Price to Sales (P/S): 2.28
• P/FCF Ratio: 26.45
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$6.51
• Price Target Upside: 6.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: AU$6.50 ▲(6.04% Upside)

Champion Iron's stock is supported by strong earnings call results and positive technical indicators. While financial performance shows growth, challenges in profitability and leverage need addressing. The valuation is reasonable, with a solid dividend yield enhancing attractiveness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong sales performance and market demand, supporting long-term business sustainability and expansion.

Operational Efficiency

Operational efficiency improvements allow the company to maintain production levels and reduce costs, enhancing profitability and competitive positioning.

Cash and Liquidity Position

A strong liquidity position provides financial flexibility for investments and operational needs, supporting long-term strategic initiatives and risk management.

Negative Factors

Profitability Challenges

Decreasing profit margins indicate rising costs or pricing pressures, which could affect long-term profitability and require strategic adjustments.

Increased Leverage

Higher leverage can strain financial stability and limit the company's ability to invest in growth opportunities, posing a risk if not managed carefully.

Cash Flow Management

Challenges in generating positive free cash flow could impact liquidity and the ability to fund operations and growth, necessitating improved cash management strategies.

Champion Iron Business Overview & Revenue Model

Company Description

Champion Iron Limited engages in the acquisition, exploration, development, and production of iron ore deposits in Canada. Its flagship projects include the Bloom Lake Mine located in south end of the Labrador; the Consolidated Fire Lake North project that includes the Fire Lake North, Don Lake, Bellechasse, and Oil Can deposits situated in Quebec; and the Kamistiatusset project located in the Labrador. The company sells its iron ore concentrate in China, Japan, the Middle East, Europe, South Korea, India, and internationally. Champion Iron Limited is headquartered in Montreal, Canada.

How the Company Makes Money

Champion Iron generates revenue primarily through the sale of iron ore concentrate produced at its Bloom Lake Iron Mine. The company operates on a business model that involves extracting iron ore, processing it to create high-quality iron ore concentrate, and selling it to various customers, including steel mills and traders worldwide. Key revenue streams include direct sales of iron ore concentrate under long-term contracts and spot market sales. Additionally, the company benefits from partnerships with other mining and steel production companies, as well as favorable market conditions for iron ore, which influence pricing and demand. Factors such as global steel production levels, changes in mining regulations, and fluctuations in commodity prices also significantly impact Champion Iron's earnings.

Champion Iron Financial Statement Overview

Summary

Champion Iron faces challenges with declining revenue growth and profitability margins, impacting its income statement. The balance sheet remains stable with moderate leverage, but cash flow issues could pose risks to liquidity and future growth. The company needs to address revenue and cash flow challenges to improve its financial health.

Income Statement

Champion Iron's income statement shows a decline in revenue growth with a negative rate of -4.8% in the TTM period, indicating potential challenges in maintaining sales momentum. Gross profit margin has decreased significantly from previous years, reflecting increased cost pressures. The net profit margin has also declined, suggesting reduced profitability. However, the company maintains positive EBIT and EBITDA margins, indicating operational efficiency despite the revenue decline.

Balance Sheet

The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio of 0.55 in the TTM period, indicating manageable leverage. Return on equity has decreased but remains positive, suggesting the company is generating returns for shareholders. The equity ratio is healthy, indicating a strong capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow growth and a negative free cash flow to net income ratio, indicating potential liquidity issues. The operating cash flow to net income ratio is close to 1, suggesting that operating cash flows are just covering net income, which could limit reinvestment opportunities.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2023	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.73B	1.52B	1.61B	1.40B	1.46B	785.09M
Gross Profit	373.01M	629.76M	401.73M	451.28M	958.20M	363.72M
EBITDA	452.08M	555.41M	446.20M	481.68M	916.31M	348.54M
Net Income	127.71M	234.19M	142.04M	200.71M	522.59M	89.43M
Balance Sheet
Total Assets	3.73B	2.69B	3.03B	2.32B	1.99B	882.60M
Cash, Cash Equivalents and Short-Term Investments	352.98M	400.06M	117.45M	327.12M	352.67M	298.65M
Total Debt	1.18B	616.41M	758.91M	562.12M	377.34M	278.86M
Total Liabilities	2.10B	1.29B	1.59B	1.05B	827.53M	505.98M
Stockholders Equity	1.63B	1.40B	1.44B	1.26B	1.16B	376.62M
Cash Flow
Free Cash Flow	-190.07M	131.31M	-301.58M	-58.68M	-53.95M	156.06M
Operating Cash Flow	353.72M	474.58M	304.02M	235.98M	470.44M	309.57M
Investing Cash Flow	-559.60M	-354.72M	-615.75M	-249.86M	-635.47M	-152.89M
Financing Cash Flow	357.53M	-48.36M	23.41M	6.90M	-118.14M	-14.89M

Champion Iron Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CIA, the sentiment is Positive. The current price of 6.13 is above the 20-day moving average (MA) of 5.98, above the 50-day MA of 5.49, and above the 200-day MA of 4.68, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 62.02 is Neutral, neither overbought nor oversold. The STOCH value of 73.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CIA.

Champion Iron Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIA	71 Outperform	AU$3.27B	23.85	8.25%	3.66%	0.40%	-53.09%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MGX	52 Neutral	AU$513.49M	-6.34	-16.34%	―	-48.05%	-1394.34%
GWR	47 Neutral	AU$37.21M	4.42	19.09%	―	―	―
IRD	45 Neutral	AU$19.97M	3.93	3.77%	―	―	―
M4M	34 Underperform	AU$31.98M	-5.56	-92.18%	―	―	66.67%

Champion Iron Corporate Events

Champion Iron Confirms AUD Equivalent for Declared Dividend

Champion Iron Limited has updated its previous announcement to confirm the Australian Dollar equivalent of its Canadian Dollar declared dividend. This update pertains to a dividend distribution for the six-month period ending September 30, 2025, and reflects the company’s commitment to transparent financial communications with its stakeholders.

Champion Iron Limited Announces Dividend Distribution for Shareholders

Champion Iron Limited has announced a dividend distribution of CAD 0.10 per share for its ordinary fully paid securities, covering the six-month period ending September 30, 2025. This distribution reflects the company’s ongoing commitment to returning value to shareholders and may enhance its attractiveness to investors, potentially impacting its market positioning positively.

Champion Iron Releases Financial Analysis for Q3 2025

Champion Iron Limited has released its Management’s Discussion and Analysis for the three and six-month periods ending September 30, 2025. The report, prepared in accordance with Australian and International Accounting Standards, provides insights into the company’s financial performance, highlighting non-IFRS financial measures used to evaluate results. The company emphasizes the importance of these measures for providing additional information beyond standard IFRS metrics. The release also includes cautionary notes regarding forward-looking statements, indicating potential risks and uncertainties affecting future operations.

Champion Iron Reports Strong Q2 Results and Advances Key Projects

Champion Iron reported strong financial results for its FY2026 second quarter, with record sales of 3.9 million dmt and a revenue of $493 million. The company declared a semi-annual dividend and is advancing its DRPF project, which aims to upgrade Bloom Lake’s capacity to produce DR quality iron ore. The company also formalized a strategic partnership with Nippon Steel and Sojitz for the Kami Project, enhancing its market positioning and growth prospects.

Champion Iron Releases Directors’ Report Highlighting Financial and Operational Insights

Champion Iron Limited has released its Directors’ Report for the period ending September 30, 2025, detailing the company’s financial performance and operational review. The report highlights the management’s responsibility for financial statement integrity and the use of non-IFRS financial measures to provide additional insights into the company’s performance. This release is significant as it provides stakeholders with a comprehensive overview of the company’s financial health and operational strategies, which are crucial for assessing its market positioning and future growth potential.

Champion Iron Reports Revenue Growth Despite Profit Decline

Champion Iron Limited reported an 8% increase in revenue for the half-year ended September 30, 2025, compared to the same period in 2024, reaching C$882.9 million. However, the company’s net profit decreased by 20% to C$80.6 million. The company declared an interim dividend of C$0.10 per share, maintaining its dividend policy. Additionally, Champion Iron transferred its assets related to the Kamistiatusset properties into Kami Iron Mine Partnership, retaining a 51% interest while 49% was acquired by third parties, indicating a strategic move to potentially develop the project further.

Champion Iron Ceases Certain Securities Due to Unmet Conditions

Champion Iron Limited announced the cessation of certain securities, specifically 322,746 performance share units and 215,164 restricted share units, due to unmet conditions. This development may impact the company’s capital structure and reflects the challenges in meeting performance or market conditions, potentially affecting stakeholder confidence.

Champion Iron Advances in High-Grade Iron Ore Production

Champion Iron Limited has announced plans to upgrade its Bloom Lake iron ore concentrate to produce a higher-grade, Direct Reduction quality pellet feed. This strategic move aligns with the industry’s shift towards Electric Arc Furnaces and the rising demand for higher-grade iron ore, positioning Champion Iron to capitalize on market trends and enhance its operational efficiency. The company is also progressing with the Kami Project, which has the potential to produce a Direct Reduction grade product, further solidifying its presence in the evolving steelmaking sector.

Champion Iron Partners with Nippon Steel and Sojitz for Kami Project Development

Champion Iron has formed a partnership with Nippon Steel and Sojitz for the development of the Kami Project, an iron ore initiative in Newfoundland. The partners have made an initial contribution of $68.6 million, with Champion holding a 51% stake. The project’s feasibility study is expected by the end of 2026, with further investment contingent on its results. The Kami Project, acquired in 2021, is set to produce high-grade iron ore with a 25-year mine life and significant economic potential, enhancing Champion’s market position.