Labrador Iron Ore (LIF) AI Stock Analysis

• Market Cap: C$1.91B
• Dividend Yield: 6.37%
• Average Volume (3M): 262.04K
• Price to Earnings (P/E): 17.3
• 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: 20.40% 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 ▲(17.06% 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

Financials are strong overall, led by an exceptionally strong profitability profile and an excellent balance sheet with zero debt and substantial equity. The main offset is weakening momentum: TTM revenue, net income, and free cash flow are down versus 2024, indicating a normalization/cyclical cooling from prior peak levels.

Income Statement

Profitability is exceptionally strong for the Steel industry, with TTM (Trailing-Twelve-Months) gross margin ~96.5% and net margin ~60.3%, supported by very high operating profitability (EBIT margin ~75.1%). However, growth and momentum have softened: revenue is down versus 2024 (TTM revenue ~$182.9M vs. ~$207.5M) despite a positive TTM growth rate shown, and net income has declined meaningfully from 2024 ($110.3M TTM vs. $175.0M). Results also look volatile across years, with outsized margins in prior periods that may not be fully repeatable.

Balance Sheet

Balance sheet strength is excellent: the company reports zero debt across periods, with a 0.0 debt-to-equity ratio, providing high financial flexibility and low solvency risk. Equity is substantial and stable (~$645M TTM) against total assets (~$812M TTM). The main watch item is profitability normalization—returns on equity remain solid in TTM (~17.2%) but are well below peak levels seen in earlier years, suggesting earnings power can swing with the cycle.

Cash Flow

Cash generation is solid and high quality: TTM (Trailing-Twelve-Months) operating cash flow is ~$122.0M and free cash flow matches it, with cash flow fully covering net income (free cash flow to net income = 1.0). Operating cash flow also appears strong relative to reported earnings (coverage ~3.53). The key weakness is the recent decline in cash flow—TTM free cash flow is down about 7.7% year over year and is materially lower than 2024 ($201.9M), reflecting a cooling earnings/cash backdrop.

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: Negative
• Last Price: 29.90
• 50DMA: Negative
• 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 TSE:LIF, the sentiment is Negative. The current price of 29.9 is below the 20-day moving average (MA) of 30.52, below the 50-day MA of 30.37, and above the 200-day MA of 28.44, indicating a neutral trend. The MACD of -0.22 indicates Positive momentum. The RSI at 41.57 is Neutral, neither overbought nor oversold. The STOCH value of 30.33 is Neutral, 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
LIF	82 Outperform	C$1.91B	17.35	16.92%	6.37%	-10.99%	-43.30%
ALS	81 Outperform	C$2.03B	5.62	53.36%	0.94%	-0.76%	2549.18%
CHE.UN	73 Outperform	C$1.84B	16.69	14.30%	4.73%	10.20%	-11.22%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
RBX	52 Neutral	C$1.55B	-12.44	-25.39%	―	29.47%	1.53%
LAC	52 Neutral	$1.86B	-4.24	-42.69%	―	―	-465.27%
ASTL	51 Neutral	C$660.03M	-0.93	-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.