Labrador Iron Ore (LIF) AI Stock Analysis

• Market Cap: C$2.04B
• Dividend Yield: 6.37%
• Average Volume (3M): 262.04K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.74
• Revenue Growth: -10.99%
• EPS Growth: -43.30%
• Country: CA
• Employees: 3
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.47
• Shares Outstanding: 64,000,000
• 10 Day Avg. Volume: 266,344
• 30 Day Avg. Volume: 262,042
• PEG Ratio: -1.71
• Price to Book (P/B): 2.88
• Price to Sales (P/S): 8.92
• P/FCF Ratio: 9.17
• 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: 14.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 82 Outperform
• Price Target: C$35.00 ▲(11.50% Upside)

The score is driven primarily by strong financial performance (debt-free balance sheet and robust profitability/cash conversion), partially offset by softer recent fundamentals versus 2024. Technicals are supportive but not strongly bullish, while valuation is helped by the high dividend yield but moderated by a mid-teens P/E.

Positive Factors

Strong Financial Health

Labrador Iron Ore's zero debt and strong equity backing provide financial stability and flexibility, supporting long-term operational resilience and strategic initiatives.

Efficient Cash Flow Management

Strong cash flow growth and management indicate efficient operations, enabling the company to sustain dividends and invest in future growth, enhancing shareholder value.

Stable Production Outlook

Stable production at IOC ensures consistent royalty income for Labrador Iron Ore, supporting predictable revenue streams and financial planning.

Negative Factors

Decline in Profitability

A decline in net profit margin indicates reduced profitability, which may impact future earnings and limit the company's ability to invest in growth or increase shareholder returns.

Market Challenges

Global market challenges, particularly in China, could pressure iron ore prices and demand, impacting Labrador Iron Ore's revenue and profitability in the medium term.

Revenue Growth Decline

Slower revenue growth may signal challenges in expanding market share or increasing sales, potentially affecting long-term financial performance and strategic positioning.

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

Labrador Iron Ore Royalty Corporation makes money through two main revenue streams: royalties and equity dividends. Firstly, LIF earns royalty revenue from the Iron Ore Company of Canada, as it holds a royalty on iron ore sales generated by IOC. This royalty is a function of the volume of iron ore produced and sold, as well as the prevailing market prices for iron ore products. Secondly, LIF receives dividends from its 15.10% equity interest in IOC. These dividends are contingent on IOC's profitability and its board's decision to distribute profits. LIF's financial performance is thus closely tied to IOC's operational success, global iron ore prices, and demand for iron ore products. Significant factors contributing to LIF's earnings include IOC's production efficiency, market demand for iron ore, and the global economic climate impacting commodity prices.

Labrador Iron Ore Financial Statement Overview

Summary

Labrador Iron Ore demonstrates solid financial health with stable profitability and growth. The income statement shows stable gross margins and a slight decline in net profit margin. The balance sheet is robust with zero debt and strong equity backing. Cash flow metrics are strong with significant free cash flow growth.

Income Statement

Labrador Iron Ore's income statement reflects a stable gross profit margin, with a slight increase from 83.5% in 2023 to 80.2% in 2024. However, the net profit margin decreased from 93.1% in 2023 to 84.3% in 2024, suggesting a decline in profitability. Revenue growth was modest at 3.7% from 2023 to 2024. The EBITDA margin is strong at 78.7% in 2024, indicating efficient operations.

Balance Sheet

The balance sheet shows a robust financial position with zero debt, resulting in a debt-to-equity ratio of 0. The equity ratio remains strong at 76.9% in 2024, indicating solid asset backing. ROE decreased slightly from 28.3% in 2023 to 27.2% in 2024, but remains healthy, highlighting efficient equity utilization.

Cash Flow

Cash flow metrics are strong with a free cash flow growth rate of 32.4% from 2023 to 2024. The operating cash flow to net income ratio is 1.15, suggesting good cash generation relative to net income. The free cash flow to net income ratio is also favorable at 1.15, indicating efficient cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	182.93M	207.51M	200.17M	232.32M	279.47M	201.93M
Gross Profit	176.55M	201.25M	194.15M	225.90M	273.30M	195.74M
EBITDA	77.51M	225.41M	243.22M	337.73M	450.75M	285.17M
Net Income	110.31M	175.04M	186.31M	265.45M	379.77M	227.19M
Balance Sheet
Total Assets	812.28M	836.13M	837.04M	825.76M	789.31M	823.22M
Cash, Cash Equivalents and Short-Term Investments	18.31M	42.30M	13.19M	39.90M	82.91M	106.09M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	167.46M	193.19M	177.71M	188.31M	225.25M	256.85M
Stockholders Equity	644.81M	642.93M	659.33M	637.46M	564.06M	566.37M
Cash Flow
Free Cash Flow	122.03M	201.91M	152.49M	184.19M	402.42M	175.43M
Operating Cash Flow	122.03M	201.91M	152.49M	184.19M	402.42M	175.43M
Investing Cash Flow	0.00	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	-144.00M	-172.80M	-179.20M	-227.20M	-425.60M	-147.20M

Labrador Iron Ore Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LIF, the sentiment is Positive. The current price of 31.39 is above the 20-day moving average (MA) of 30.58, above the 50-day MA of 29.92, and above the 200-day MA of 28.19, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 67.55 is Neutral, neither overbought nor oversold. The STOCH value of 96.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LIF.

Labrador Iron Ore Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LIF	82 Outperform	C$2.04B	18.48	16.92%	6.37%	-10.99%	-43.30%
ALS	81 Outperform	C$2.11B	5.86	53.36%	0.94%	-0.76%	2549.18%
CHE.UN	73 Outperform	C$1.70B	15.39	14.30%	4.73%	10.20%	-11.22%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LAC	52 Neutral	$2.37B	-5.91	-42.69%	―	―	-465.27%
RBX	51 Neutral	C$1.54B	-13.20	-25.39%	―	29.47%	1.53%
ASTL	51 Neutral	$684.17M	-1.03	-59.32%	4.87%	―	―

Labrador Iron Ore Corporate Events

Labrador Iron Ore Faces Mixed Q3 Results Amid Market Challenges

Labrador Iron Ore Royalty Corporation reported its third-quarter results for 2025, highlighting a mixed financial performance. While the company benefited from higher iron ore prices and increased pellet sales volumes, it faced challenges due to lower concentrate sales tonnages and declining pellet premiums. The royalty revenue saw a slight increase compared to the previous year, but net income per share decreased by 11% from the same period in 2024. The global steel demand remained weak, particularly in China, impacting the overall market dynamics. Despite these challenges, the company navigated through a robust supply environment, with major producers like Vale increasing production.

The most recent analyst rating on (TSE:LIF) stock is a Hold 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 Announces CFO Transition

Labrador Iron Ore Royalty Corporation announced a change in its Chief Financial Officer position, with Alan R. Thomas stepping down and Stephen D. Pearce assuming the role. This transition is expected to be smooth due to Pearce’s long history with the company, ensuring continued financial stability and shareholder returns.

The most recent analyst rating on (TSE:LIF) stock is a Hold 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.

Rio Tinto Reports IOC’s Q3 Production and Sales; LIORC to Release Q3 Report Soon

Rio Tinto has released its third-quarter operational report for 2025, detailing the Iron Ore Company of Canada’s (IOC) production and sales figures. IOC produced 4.00 million tonnes of saleable iron ore, including pellets and concentrate for sale, with total sales of 4.02 million tonnes. The full-year production is expected to be at the lower end of the guidance range. Labrador Iron Ore Royalty Corporation (LIORC) will release its full third-quarter report on November 5, 2025.

The most recent analyst rating on (TSE:LIF) stock is a Hold 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.