Today article will digest Lundin Mining. I will evaluate why we are still optimistic in anticipation of a recovery. Lundin Mining chance of financial distress is under
48.00 % . Assuming 30 trading days horizon, Lundin Mining is expected to generate 1.75 times less return on investment than the market. In addition to that, the company is 3.72 times more volatile than its market benchmark. It trades about 0.03 of its total potential returns per unit of risk. The market is currently generating roughly 0.2 per unit of volatility. We found thirty-four available fundamentals for Lundin Mining which can be compared to its peers in the industry. To make sure the equity is not overpriced, please verify all Lundin Mining Corporation fundamentals including its
Current Ratio,
Market Capitalization and the
relationship between
Cash and Equivalents and
Earnings Per Share . Given that
Lundin Mining has
Price to Book of
0.94X, we recommend you check Lundin Mining last-minute market performance to make sure the company can sustain itself down the road. Use Lundin Mining to enhance returns of your portfolios. The stock experiences large bullish trend. Check odds of Lundin Mining to be traded at
$5.23 in 30 days.
The company classifies itself under
Basic Materials sector and is part of
Copper industry. This firm dividends can provide a clue to current valuation of the stock. Lundin Mining one year expected dividend income is about $0.04 per share. The company has price-to-book ratio of 0.94. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Lundin Mining has Price/Earnings To Growth (PEG) ratio of 0.4. The entity last dividend was issued on 2019-03-21. The firm had
3:1 split on 2007-02-09.
Investing in Lundin Mining, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Lundin Mining along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Lundin Mining
financial leverage refers to using borrowed capital as a funding source to finance Lundin Mining ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lundin Mining financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Lundin Mining's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Lundin Mining's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Lundin Mining's total debt and its cash.
To perform a cash flow analysis of Lundin Mining, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Lundin Mining is receiving and how much cash it distributes out in a given period. The Lundin Mining cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Investors in Lundin can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Lundin Mining. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Lundin Mining and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Lundin is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Lundin for more details
The current investor indifference towards the small price fluctuations of Lundin Mining Corporation may encourage investors to take a closer look at the firm as it closed today at a share price of
4.65 on
5799.000 in trading volume. The company executives did not add any value to Lundin Mining investors in
March. However, most investors can still diversify their portfolios with Lundin Mining Corporation to hedge your portfolio against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.6096. The current volatility is consistent with the ongoing market swings in
March 2019 as well as with Lundin Mining unsystematic, company specific events. Lundin Mining preserves 3.73b of total asset. Lundin Mining is selling for under 4.75. That is 1.28 percent increase. Day high is 4.8102.
To summarize, we belive that Lundin Mining is currently
undervalued with
close to average odds of distress in the next two years. Our present buy-sell advice on the firm is
Strong Sell.
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Try AI Portfolio ArchitectRifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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