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Labrador Iron Ore
(TSX:LIF)
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Rating:70Outperform
Price Target:
C$31.00
▲(6.64% Upside)
Action:Reiterated
Date:05/09/26
The score is primarily supported by strong financial quality (notably zero debt and very high margins), but is held back by recent revenue/earnings and free-cash-flow deterioration. Technicals are slightly weak and valuation is mixed, with a high P/E only partly offset by a solid dividend yield.
Positive Factors
Balance Sheet Strength
A zero-debt balance sheet gives durable financial flexibility: the company can sustain distributions, weather commodity downturns, and pursue opportunistic investments or buybacks without leverage risk. This structural strength limits default risk and supports long-term capital allocation.
Negative Factors
Revenue and Earnings Contraction
Declining top-line and stepped-down net income indicate the company’s royalty and equity returns have fallen from prior-cycle highs. Persisting revenue contraction reduces sustainable royalty receipts and dividend capacity, and could press margins and payout consistency over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
A zero-debt balance sheet gives durable financial flexibility: the company can sustain distributions, weather commodity downturns, and pursue opportunistic investments or buybacks without leverage risk. This structural strength limits default risk and supports long-term capital allocation.
Read all positive factors
Labrador Iron Ore (LIF) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.75B
Dividend Yield6.37%
Average Volume (3M)262.04K
Price to Earnings (P/E)18.7
Beta (1Y)0.86
Revenue Growth-11.36%
EPS Growth-32.65%
CountryCA
Employees4
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)1.46
Shares Outstanding64,000,000
10 Day Avg. Volume266,344
30 Day Avg. Volume262,042
Financial Highlights & Ratios
PEG Ratio-0.45
Price to Book (P/B)2.96
Price to Sales (P/S)11.52
P/FCF Ratio19.69
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$36.00Price Target Upside23.84% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.51
Revenue Forecast (FY)C$178.75M
Labrador Iron Ore Business Overview & Revenue Model
Company Description
Labrador Iron Ore Royalty Corporation maintains a substantial 15.10% ownership stake in the Iron Ore Company of Canada (IOC) via its subsidiary, Hollinger-Hanna Limited. The IOC specializes in the mining and refinement of iron ores at its operatio...
How the Company Makes Money
LIF makes money primarily from (1) royalty income and (2) equity investment returns tied to IOC. Its core cash-flow source is a gross revenue royalty on IOC’s iron ore product sales/shipment revenues from its Labrador City mining and processing op...
Labrador Iron Ore Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 165.74M | 165.88M | 207.51M | 200.17M | 232.32M | 279.47M |
| Gross Profit | 159.74M | 159.71M | 201.25M | 194.15M | 225.90M | 273.30M |
| EBITDA | 125.68M | 146.48M | 225.41M | 243.22M | 337.73M | 450.75M |
| Net Income | 92.36M | 100.58M | 175.04M | 186.31M | 265.45M | 379.77M |
Balance Sheet | ||||||
| Total Assets | 797.34M | 809.43M | 836.13M | 837.04M | 825.76M | 789.31M |
| Cash, Cash Equivalents and Short-Term Investments | 15.29M | 14.57M | 42.30M | 13.19M | 39.90M | 82.91M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 158.14M | 164.22M | 193.19M | 177.71M | 188.31M | 225.25M |
| Stockholders Equity | 639.20M | 645.21M | 642.93M | 659.33M | 637.46M | 564.06M |
Cash Flow | ||||||
| Free Cash Flow | 95.45M | 97.07M | 201.91M | 152.49M | 184.19M | 402.42M |
| Operating Cash Flow | 95.45M | 97.07M | 201.91M | 152.49M | 184.19M | 402.42M |
| Investing Cash Flow | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | -99.20M | -124.80M | -172.80M | -179.20M | -227.20M | -425.60M |
Labrador Iron Ore Technical Analysis
Negative
29.07
Price Trends
27.88
Negative
28.40
Negative
28.55
Negative
Market Momentum
-0.16
Positive
43.81
Neutral
18.82
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 29.07 is above the 20-day moving average (MA) of 27.97, above the 50-day MA of 27.88, and above the 200-day MA of 28.55, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 43.81 is Neutral, neither overbought nor oversold. The STOCH value of 18.82 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$3.50B | 9.85 | 32.43% | 0.94% | 29.24% | 188.40% | |
70 Outperform | C$1.75B | 18.74 | 14.38% | 6.37% | -11.36% | -32.65% | |
64 Neutral | C$1.86B | 16.14 | 15.37% | 4.73% | 10.86% | -10.00% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
46 Neutral | C$540.64M | -0.49 | -142.23% | 4.87% | -20.89% | -483.46% | |
40 Underperform | C$1.65B | -7.24 | -12.78% | ― | ― | -161.83% |
* Basic Materials Sector Average
TSE:LIF
Labrador Iron Ore
27.36
1.07
4.07%
TSE:ALS
Altius Minerals
62.74
35.18
127.65%
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16.71
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54.95%
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5.13
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-44.12%
TSE:LAC
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4.70
0.78
19.90%
Labrador Iron Ore Corporate Events
Business Operations and StrategyFinancial Disclosures
Labrador Iron Ore Royalty Hit by Lower Prices, Volumes as 2025 Profit Drops
Negative
Mar 12, 2026
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...
Business Operations and StrategyDividends
Labrador Iron Ore Royalty Corp. Declares Q1 2026 Dividend
Positive
Mar 12, 2026
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 se...
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.