Education
About Us
Working with TipRanks
Follow Us
Lynas Rare Earths Limited Sponsored ADR (LYSDY)
OTHER OTC:LYSDY
Top Page
Lynas Rare Earths Limited Sponsored ADR
(OTC:LYSDY)
Select Model
Select Model
Rating:56Neutral
Price Target:
$10.50
▲(25.30% Upside)
The overall stock score of 56 reflects mixed financial performance and valuation concerns, with a high P/E ratio indicating potential overvaluation. Technical indicators suggest neutral to bearish momentum. The earnings call provides a positive strategic outlook, but financial and operational challenges remain significant.
Positive Factors
Revenue Growth
Positive revenue growth indicates strong demand for Lynas's products and suggests the company is effectively capturing market opportunities.
Strategic Positioning
By breaking China's monopoly on heavy rare earths, Lynas strengthens its competitive position and reduces dependency on a single supplier.
Balance Sheet Health
A strong balance sheet with low leverage provides financial stability and flexibility for future investments and growth initiatives.
Negative Factors
Declining Profitability
Significant decline in profitability margins raises concerns about cost management and pricing power, impacting long-term financial health.
Cash Flow Challenges
Negative cash flow growth suggests potential liquidity issues, which could hinder the company's ability to fund operations and strategic projects.
Increased Injury Rates
Rising injury rates may indicate operational inefficiencies and could lead to higher costs and regulatory scrutiny, affecting long-term operations.
Lynas Rare Earths Limited Sponsored ADR (LYSDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.56B
Dividend YieldN/A
Average Volume (3M)N/A
Price to Earnings (P/E)1496.4
Beta (1Y)0.35
Revenue Growth18.52%
EPS Growth-90.56%
CountryUS
Employees1,102
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)<0.01
Shares Outstanding1,006,502,560
10 Day Avg. VolumeN/A
30 Day Avg. VolumeN/A
Financial Highlights & Ratios
PEG Ratio-11.17
Price to Book (P/B)3.44
Price to Sales (P/S)14.90
P/FCF Ratio-24.75
Enterprise Value/Market Cap0.62
Enterprise Value/Revenue9.56
Enterprise Value/Gross Profit40.98
Enterprise Value/Ebitda116.81
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Lynas Rare Earths Limited Sponsored ADR Business Overview & Revenue Model
Company DescriptionLynas Rare Earths Limited Sponsored ADR (LYSDY) is a leading global producer of rare earth materials, essential for various high-tech industries including electronics, renewable energy, and defense. The company operates primarily in the mining and processing of rare earth elements (REEs), with its main production facilities located in Australia and Malaysia. Lynas is known for its commitment to sustainable practices and aims to meet the rising global demand for rare earths, which are critical for manufacturing magnets, batteries, and other advanced materials.
How the Company Makes MoneyLynas generates revenue primarily through the sale of rare earth products, including neodymium, praseodymium, and other rare earth oxides. The company has established a strong customer base in sectors such as automotive, electronics, and clean energy, which rely on these materials for their products. Key revenue streams include long-term supply contracts with major manufacturers, spot market sales, and partnerships with companies looking to secure rare earth supplies. Additionally, Lynas benefits from favorable pricing dynamics in the rare earth market, driven by increasing demand and supply chain constraints, which enhance its profitability.
Lynas Rare Earths Limited Sponsored ADR Earnings Call Summary
Earnings Call Date:Aug 27, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements including breaking the Chinese monopoly on heavy rare earths and record production rates. However, there were notable challenges, such as increased injury rates and financial pressures from new asset depreciation. Overall, the company shows a strong strategic direction with its 'Towards 2030 Strategy' and capital raise efforts to support further growth.Q4-2025 Updates
Positive Updates
Breaking Chinese Monopoly on Heavy Rare Earths
Lynas successfully produced heavy rare earths, breaking the Chinese monopoly on this segment in 2025.
Record Production in Q4 FY'25
Achieved record production in the fourth quarter of FY 2025, with prices moving in the right direction.
Safety Milestone
Greater than 5 million man-hours with no Lost Time Injuries (LTIs) recorded during the Mt Weld and lab expansion programs.
Launch of Lynas 2030 Strategy
Announced the 'Towards 2030 Strategy' focusing on harvesting existing investments and driving sustainable growth.
Capital Raise to Support Growth
Launching a capital raise to ensure readiness to capture market growth opportunities and to support new projects.
Negative Updates
Increased Loss Time Injury Frequency Rate
Despite improvements in Total Recordable Injury Frequency Rate (TRIFR), the Loss Time Injury Frequency Rate increased.
Lower NPAT in FY'25
Net Profit After Tax (NPAT) was lower than the previous year due to high depreciation and amortization (DA) associated with new assets.
Uncertainty of U.S. Seadrift Project
Significant uncertainty remains whether the Seadrift plan will proceed as initially conceived.
Company Guidance
During the Lynas Rare Earths Investor Briefing for the 2025 financial year, CEO Amanda Lacaze outlined key metrics and future strategies, emphasizing the company's leadership position outside China. The company has completed the construction phase of its Lynas 2025 capital program, which included rebuilding the Mt Weld facility, establishing a new Kalgoorlie site, and upgrading Lynas Malaysia. They achieved significant milestones in FY '25, such as breaking China's monopoly on heavy rare earths and securing over 20 years of mine life. Despite challenges like low market prices affecting NPAT, the company recorded a revenue uplift due to increased production volumes, with a record production in Q4. They reported over 5 million man-hours without LTIs at Mt Weld and improved TRIFR, despite an increase in loss time injury frequency rate. Looking forward, Lynas is launching a capital raise to support its Towards 2030 Strategy, focusing on resource expansion, downstream capacity increase, and potential joint ventures in metal and magnet supply chains. The briefing also highlighted ongoing discussions with governments regarding market support, including floor pricing arrangements, to ensure sustainable industry growth.Lynas Rare Earths Limited Sponsored ADR Financial Statement Overview
Summary
Lynas Rare Earths Limited shows mixed financial performance. Revenue growth is positive, but declining profitability and cash flow challenges present risks. The balance sheet is strong with low leverage, but declining ROE and negative cash flow metrics highlight areas for improvement.Income Statement
Lynas Rare Earths Limited has shown a mixed performance in its income statement. The company experienced a revenue growth rate of 12.4% in the most recent year, indicating a positive trend after a decline in previous years. However, profitability margins have significantly decreased, with the net profit margin dropping from 58.8% in 2022 to 1.5% in 2025. This decline in profitability is a concern, despite the positive revenue growth.55
Neutral
Balance Sheet
The balance sheet of Lynas Rare Earths Limited reflects a stable financial position with a low debt-to-equity ratio of 0.086, indicating conservative leverage. The equity ratio is strong, and the company maintains a positive return on equity, although it has decreased over the years. The company's financial stability is a positive aspect, but the declining ROE suggests potential inefficiencies in generating returns from equity.70
Positive
Cash Flow
The cash flow statement reveals challenges, with negative free cash flow growth and a negative free cash flow to net income ratio. Operating cash flow is positive but has decreased significantly compared to previous years, indicating potential liquidity issues. The negative free cash flow growth rate of -22.3% is concerning and suggests the company may face difficulties in funding operations and investments without external financing.40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 556.51M | 542.66M | 464.45M | 787.12M | 920.01M | 489.02M |
| Gross Profit | 129.82M | 179.21M | 184.46M | 440.95M | 601.26M | 266.59M |
| EBITDA | 45.54M | 116.30M | 171.17M | 413.57M | 605.60M | 238.12M |
| Net Income | 7.99M | 7.99M | 84.51M | 310.67M | 540.82M | 157.08M |
Balance Sheet | ||||||
| Total Assets | 2.94B | 2.94B | 2.80B | 2.64B | 2.06B | 1.48B |
| Cash, Cash Equivalents and Short-Term Investments | 166.49M | 166.49M | 523.84M | 1.01B | 965.58M | 680.83M |
| Total Debt | 202.05M | 202.05M | 183.98M | 190.62M | 192.14M | 174.97M |
| Total Liabilities | 591.51M | 591.51M | 562.12M | 475.27M | 416.02M | 394.17M |
| Stockholders Equity | 2.35B | 2.35B | 2.24B | 2.16B | 1.65B | 1.08B |
Cash Flow | ||||||
| Free Cash Flow | -326.66M | -326.66M | -544.38M | -208.76M | 273.77M | 174.62M |
| Operating Cash Flow | 104.17M | 104.17M | 34.96M | 386.75M | 460.07M | 215.06M |
| Investing Cash Flow | -406.19M | -406.19M | -507.22M | -554.50M | -83.60M | -138.26M |
| Financing Cash Flow | -45.30M | -45.30M | -22.54M | 199.00M | -13.81M | 405.59M |
Lynas Rare Earths Limited Sponsored ADR Technical Analysis
Negative
8.38
Price Trends
10.53
Negative
9.86
Negative
7.56
Positive
Market Momentum
-0.41
Positive
36.66
Neutral
2.37
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LYSDY, the sentiment is Negative. The current price of 8.38 is below the 20-day moving average (MA) of 9.38, below the 50-day MA of 10.53, and above the 200-day MA of 7.56, indicating a neutral trend. The MACD of -0.41 indicates Positive momentum. The RSI at 36.66 is Neutral, neither overbought nor oversold. The STOCH value of 2.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LYSDY.
Lynas Rare Earths Limited Sponsored ADR Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $10.04B | -75.85 | -6.83% | ― | 26.44% | -95.87% | |
56 Neutral | $8.56B | 1,496.43 | 0.34% | ― | 18.52% | -90.56% | |
42 Neutral | $2.75B | -8.47 | ― | ― | ― | -111.94% | |
35 Underperform | $1.19B | ― | -49.09% | ― | ― | -18.77% |
* Basic Materials Sector Average
LYSDY
Lynas Rare Earths Limited Sponsored ADR
8.38
4.09
95.34%
MP
MP Materials
53.26
34.47
183.45%
TMC
TMC the metals company Inc.
6.48
5.67
700.00%
CRML
Critical Metals Corp
8.17
1.71
26.47%
IPX
Iperionx Ltd. ADR
33.88
5.60
19.80%
USAR
USA Rare Earth
14.87
2.07
16.17%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.