Lynas Rare Earths Limited (LYC.AX) stock analysis

In our weekly check, Lynas Rare Earths Limited is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 4.

About Lynas Rare Earths Limited

Lynas Rare Earths Limited is a Basic Materials company (Industrial Materials) based in Australia, listed on ASX as LYC.AX.

What our checks show for LYC.AX

Red flags

• The net margin fell by 36 points over 5 years, to 22.7%: the company keeps less of each sale as profit.
• The gross margin fell by 27.3 points, to 34.8%: costs are rising faster than prices.
• The price swings a lot: 53.5% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 99% from a peak. Would you have held through that?

Warning signs

• Earnings per share fell 13.5% a year over the last 3 years.
• Net profit fell 10.5% a year over the last 3 years.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 5.8%.

Strengths

• Debt is low: 0.1x equity.
• Operating profit covers interest 8.9 times over.
• Operating cash flow is 1.56x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 71.2% a year over the next years.
• Analysts expect revenue to grow about 37.6% a year over the next years.
• Analysts expect the net margin to improve by 21.1 points from today's 22.7%.

Similar companies

IVN.TO · PLS.AX · S32.AX · MP · MTRN · AAL.L

Questions

What grade does Lynas Rare Earths Limited (LYC.AX) have?

In our weekly check, Lynas Rare Earths Limited is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of LYC.AX stock?

This week's biggest flags for Lynas Rare Earths Limited: Margins falling, Gross margin falling, Very volatile. In total 8 of 24 checks show a warning or a red flag.

What does Lynas Rare Earths Limited do?

Lynas Rare Earths Limited is a Basic Materials company (Industrial Materials) based in Australia, listed on ASX as LYC.AX.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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