Labrador Iron Gross Profit vs. Current Valuation

LIFZF Stock  USD 21.20  0.15  0.71%   
Considering Labrador Iron's profitability and operating efficiency indicators, Labrador Iron Ore may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Labrador Iron's ability to earn profits and add value for shareholders.
For Labrador Iron profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Labrador Iron to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Labrador Iron Ore utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Labrador Iron's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Labrador Iron Ore over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Labrador Iron's value and its price as these two are different measures arrived at by different means. Investors typically determine if Labrador Iron is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Labrador Iron's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Labrador Iron Ore Current Valuation vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Labrador Iron's current stock value. Our valuation model uses many indicators to compare Labrador Iron value to that of its competitors to determine the firm's financial worth.
Labrador Iron Ore is rated below average in gross profit category among its peers. It is rated below average in current valuation category among its peers reporting about  5.85  of Current Valuation per Gross Profit. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Labrador Iron's earnings, one of the primary drivers of an investment's value.

Labrador Current Valuation vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Labrador Iron

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
273.3 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Labrador Iron

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
1.6 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Labrador Current Valuation vs Competition

Labrador Iron Ore is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Materials industry is now estimated at about 168.74 Billion. Labrador Iron maintains roughly 1.6 Billion in current valuation contributing less than 1% to all equities under Materials industry.

Labrador Iron Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Labrador Iron, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Labrador Iron will eventually generate negative long term returns. The profitability progress is the general direction of Labrador Iron's change in net profit over the period of time. It can combine multiple indicators of Labrador Iron, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Labrador Iron Ore Royalty Corporation, through its subsidiary, Hollinger-Hanna Limited, holds a 15.10 percent equity interest in Iron Ore Company of Canada that produces and processes iron ores at Labrador City, Newfoundland and Labrador. Labrador Iron Ore Royalty Corporation is based in Toronto, Canada. Labrador Iron is traded on OTC Exchange in the United States.

Labrador Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Labrador Iron. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Labrador Iron position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Labrador Iron's important profitability drivers and their relationship over time.

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Our tools can tell you how much better you can do entering a position in Labrador Iron without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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In addition to having Labrador Iron in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Other Information on Investing in Labrador Pink Sheet

To fully project Labrador Iron's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Labrador Iron Ore at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Labrador Iron's income statement, its balance sheet, and the statement of cash flows.
Potential Labrador Iron investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Labrador Iron investors may work on each financial statement separately, they are all related. The changes in Labrador Iron's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Labrador Iron's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.