Labrador Iron Ore (LIF) AI Stock Analysis

• Market Cap: C$1.75B
• Dividend Yield: 6.37%
• Average Volume (3M): 262.04K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.76
• Revenue Growth: -10.99%
• EPS Growth: -43.30%
• Country: CA
• Employees: 3
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.35
• Shares Outstanding: 64,000,000
• 10 Day Avg. Volume: 266,344
• 30 Day Avg. Volume: 262,042
• PEG Ratio: -0.45
• Price to Book (P/B): 2.96
• Price to Sales (P/S): 11.52
• P/FCF Ratio: 19.69
• 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: C$36.00
• Price Target Upside: 32.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.28
• Revenue Forecast (FY): C$215.75M

• Rating: 72 Outperform
• Price Target: C$32.00 ▲(17.35% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is supported primarily by strong financial quality—especially the debt-free balance sheet—and solid profitability/cash conversion despite recent cyclical weakening. The biggest drag is bearish technicals (below key moving averages with negative MACD), while valuation is helped by a high dividend yield and a moderate P/E.

Positive Factors

Debt-free balance sheet

A zero-debt capital structure materially reduces default and refinancing risk and gives management flexibility to sustain dividends, absorb IOC production cycles, or fund opportunistic investments without levering the company, supporting long-term resilience across commodity cycles.

Royalty / asset-light business model

An asset-light royalty model isolates LIF from operating mine costs and capex execution risk, providing predictable, low-overhead cash flows tied to third-party production. This structure supports durable profitability and low operating leverage over multi-year cycles.

Strong cash conversion (FCF ~ net income)

High free-cash-flow-to-net-income indicates earnings quality and cash reliability; consistent cash conversion supports sustainable distributions and strengthens the balance sheet, helping the company weather cyclical revenue declines without immediate liquidity stress.

Negative Factors

Concentration to IOC and iron-ore commodity

Revenue and cash flows are highly concentrated on a single operator (IOC) and one commodity, leaving LIF exposed to operational disruptions, single-counterparty governance risk, and commodity price swings that can materially alter distributions over multi-quarter to multi-year horizons.

Recent revenue and EPS declines (cyclical weakness)

Meaningful declines in revenue and EPS reflect cyclical pressure in the iron-ore market and reduced distributable cash from IOC; sustained weaker volumes or prices could compress future distributions and limit growth of shareholder returns over the medium term.

Volatile cash flow trends

While cash conversion is strong on average, the recent drop and variability in free cash flow increase uncertainty around dividend stability and reserve-building; volatility reduces predictability of long-term payouts and strategic planning.

Labrador Iron Ore Business Overview & Revenue Model

Company Description

Labrador Iron Ore Royalty Corporation, through its subsidiary, Hollinger-Hanna Limited, holds a 15.10% equity interest in Iron Ore Company of Canada (IOC) that produces and processes iron ores at Labrador City, Newfoundland and Labrador. The company's primary products include standard and low silica acid, flux, direct reduction pellets, and iron ore concentrate, as well as seaborne iron ore pellets. The company was formerly known as Labrador Iron Ore Royalty Income Fund and changed its name to Labrador Iron Ore Royalty Corporation in July 2010. Labrador Iron Ore Royalty Corporation is based in Toronto, Canada.

How the Company Makes Money

LIF makes money primarily by collecting royalty income and other cash distributions linked to the Iron Ore Company of Canada (IOC) iron ore operations in Labrador. Its core revenue stream is royalty-based: when IOC produces and sells iron ore products (such as iron ore concentrate and pellets), LIF receives payments calculated from that activity (exact contractual formulas and rates are not provided here). In addition to royalties, LIF also earns income from its equity-style interest associated with IOC, which can result in dividend or distribution income when IOC generates distributable profits/cash flow. Because of this structure, LIF’s earnings are largely driven by (i) IOC’s sales volumes (production and shipments), (ii) realized iron ore prices and pellet premiums, (iii) foreign exchange and operating costs that affect IOC’s profitability and cash available for distribution, and (iv) capital spending and operational performance at IOC that can influence production levels. The company’s results therefore depend heavily on IOC’s operating outcomes and iron ore market conditions rather than on LIF running mining operations itself.

Labrador Iron Ore Financial Statement Overview

Summary

Strong overall fundamentals driven by an exceptionally conservative, debt-free balance sheet (very low financial risk) and solid profitability/cash conversion. The main offset is weakening recent performance (2025 revenue decline, margin compression, and lower free cash flow versus prior peaks), consistent with cyclical pressure.

Income Statement

Profitability is exceptionally strong, with consistently high gross and operating profitability and robust bottom-line results across the period. However, the growth profile is volatile and currently weakening: revenue declined in 2025 (-9.3% year-over-year) after only modest growth in 2024, and net profit margins have compressed materially from peak levels (2021–2022) to 2025. Overall, this reads like a highly profitable but cyclical earnings stream with a softer near-term trajectory.

Balance Sheet

The balance sheet is very conservative with no reported debt in any year, which materially lowers financial risk and increases flexibility through the cycle. Equity and assets are stable over time, supporting resilience. The main drawback is that returns on equity have declined from very elevated levels (2021–2022) to more normalized levels by 2025, indicating reduced profitability on the capital base even though leverage is not a constraint.

Cash Flow

Cash generation is solid and clean, with free cash flow consistently matching reported earnings (free cash flow to net income at 1.0), suggesting strong cash conversion. That said, cash flow has become more volatile: free cash flow fell in 2025 (-20.5%) after a strong 2024, and operating cash flow is well below 2021 highs. Overall, cash flow quality looks good, but the trend and variability temper the score.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	165.88M	207.51M	200.17M	232.32M	279.47M
Gross Profit	159.71M	201.25M	194.15M	225.90M	273.30M
EBITDA	129.97M	225.41M	243.22M	337.73M	450.75M
Net Income	100.58M	175.04M	186.31M	265.45M	379.77M
Balance Sheet
Total Assets	809.43M	836.13M	837.04M	825.76M	789.31M
Cash, Cash Equivalents and Short-Term Investments	14.57M	42.30M	13.19M	39.90M	82.91M
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	164.22M	193.19M	177.71M	188.31M	225.25M
Stockholders Equity	645.21M	642.93M	659.33M	637.46M	564.06M
Cash Flow
Free Cash Flow	97.07M	201.91M	152.49M	184.19M	402.42M
Operating Cash Flow	97.07M	201.91M	152.49M	184.19M	402.42M
Investing Cash Flow	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	-124.80M	-172.80M	-179.20M	-227.20M	-425.60M

Labrador Iron Ore Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LIF, the sentiment is Negative. The current price of 27.27 is below the 20-day moving average (MA) of 29.86, below the 50-day MA of 30.20, and below the 200-day MA of 28.72, indicating a bearish trend. The MACD of -0.81 indicates Positive momentum. The RSI at 30.18 is Neutral, neither overbought nor oversold. The STOCH value of 13.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LIF.

Labrador Iron Ore Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALS	77 Outperform	C$2.30B	6.33	53.36%	0.94%	-0.76%	2549.18%
LIF	72 Outperform	C$1.75B	19.01	16.92%	6.37%	-10.99%	-43.30%
CHE.UN	66 Neutral	C$1.70B	11.01	18.28%	4.73%	10.20%	-11.22%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
RBX	54 Neutral	C$1.44B	-7.90	-42.22%	―	29.47%	1.53%
ASTL	51 Neutral	$516.27M	-0.41	-95.10%	4.87%	―	―
LAC	42 Neutral	C$1.78B	-8.53	―	―	―	-465.27%

Labrador Iron Ore Corporate Events

Labrador Iron Ore Royalty Hit by Lower Prices, Volumes as 2025 Profit Drops

Labrador Iron Ore Royalty Corporation reported 2025 revenue of $166.5 million, down 20% from 2024, as lower sales volumes at Iron Ore Company of Canada and weaker iron ore prices and pellet premiums weighed on results. Net income per share fell 42% to $1.57, while cash flow from operations per share dropped 52% to $1.52, reflecting reduced royalty income and IOC’s decision not to pay dividends in 2025 after a sharp decline in its earnings.

The weaker performance came against a backdrop of contracting global steel demand, led by a 4.2% drop in Chinese steel production, and robust seaborne iron ore supply that pressured prices. IOC’s realized prices for pellets and concentrate declined about 13% year over year, eroding operating margins as its largely fixed cost base could not adjust to lower prices and volumes, though IOC ended the year with higher net working capital, indicating some balance-sheet resilience despite earnings pressure.

The most recent analyst rating on (TSE:LIF) stock is a Buy with a C$36.00 price target. To see the full list of analyst forecasts on Labrador Iron Ore stock, see the TSE:LIF Stock Forecast page.

Labrador Iron Ore Royalty Corp. Declares Q1 2026 Dividend

Labrador Iron Ore Royalty Corporation, which owns a 15.10% stake in Iron Ore Company of Canada and derives income from royalties and per-tonne commissions on IOC’s iron ore output, operates as a specialized royalty vehicle in the iron ore sector. The company announced a quarterly cash dividend of $0.30 per common share for the first quarter of 2026, reinforcing its role as an income-oriented investment vehicle for shareholders and reflecting continued cash generation from its underlying iron ore royalty and equity interests.

The dividend will be paid on April 29, 2026 to shareholders of record as of March 31, 2026, indicating stable near-term capital returns tied to IOC’s production and sales. This payout underlines Labrador Iron Ore Royalty Corporation’s ongoing strategy of distributing cash flows from its iron ore-linked assets, which may be of particular interest to income-focused investors seeking exposure to the commodities sector.

The most recent analyst rating on (TSE:LIF) stock is a Buy with a C$36.00 price target. To see the full list of analyst forecasts on Labrador Iron Ore stock, see the TSE:LIF Stock Forecast page.

Labrador Iron Ore Highlights IOC Q4 Output and 2026 Guidance

Labrador Iron Ore Royalty Corporation reported that Rio Tinto’s latest quarterly operational update showed IOC produced 3.73 million tonnes of saleable iron ore in the fourth quarter of 2025, split between pellets and concentrate for sale, and sold 3.77 million tonnes over the same period, underscoring stable operational performance at the mine. Rio Tinto also set IOC’s 2026 production guidance at 15 to 18 million tonnes, a range that will directly influence LIORC’s royalty and commission income, while LIORC signalled forthcoming disclosure of its 2025 financial performance with the planned release of its annual report in March.

The most recent analyst rating on (TSE:LIF) stock is a Buy with a C$36.00 price target. To see the full list of analyst forecasts on Labrador Iron Ore stock, see the TSE:LIF Stock Forecast page.