Risk factor
Very high price volatility
Profitability factor
Very low or no dividends
About
Lepanto Consolidated Mining Company primarily focuses on the exploration and extraction of mineral resources, predominantly located in the Philippines. The company's operations are organized into three principal segments: Mining Activities, Service, and Other Ventures. Its exploration and development efforts encompass a broad spectrum of minerals, including precious metals like gold and silver, base metals such as copper, lead, and zinc, along with various ores, other metallic resources, oil, gas, coal, and their associated by-products. A significant holding in its portfolio is the Victoria project, situated in Mankayan, Benguet. Beyond its core mining endeavors, Lepanto engages in diverse activities including drilling, hauling, and sawmilling. It also generates revenue through leasing apartments, guesthouses, and warehouses, and operates in the financial sector through insurance and real estate brokerage services. Additionally, the company's manufacturing division produces, distributes, and sells specialized equipment for the diamond core drilling industry, such as diamond core and non-core bits, reamer shells, casing bits, various diamond circular and gang saws, and tubular products. These manufactured goods are distributed to markets in Hong Kong, Taiwan, and China. Established in 1936, Lepanto Consolidated Mining Company's main office is located in Makati, the Philippines.
Company Valuation
Based on key historical and expected multiples, the stock is fairly valued relative to its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITDA, rea