# Lynas Rare EARTHS (LYC.AU)

Canonical: https://gigainvestors.com/s/LYC.AU

Analysis as of: 2026-10-16T07:36:30.307Z. Financial observations: FY1997–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 10.81 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 2

- Operating margin variation: 0.94×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.05×

- FY2018: 0.22×

- FY2019: 0.16×

- FY2020: -0.02×

- FY2021: 0.32×

- FY2022: 0.59×

- FY2023: 0.38×

- FY2024: 0.14×

- FY2025: 0.01×

- FY2026: 0.25×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 8.5%

- ROIC, second-lowest year: -0.8%

- Typical minus recent gross margin: 0.4 pp

- Typical gross margin (annual median): 35.3%

- Recent gross margin (lower of latest and 3-year median): 34.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 13.6%

- ROIC including acquisitions, ten-year median: 7.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -1.7%

- FY2018: 13.1%

- FY2019: 8.9%

- FY2020: -0.8%

- FY2021: 26.9%

- FY2022: 62.1%

- FY2023: 18.6%

- FY2024: 2.6%

- FY2025: 0.3%

- FY2026: 8.0%

### economics: fail

- owner earnings cash conversion below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: -0.05×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD -64M

- Net income, five-year total: AUD 1.2B

- Return on incremental invested capital: 14.9%

- Working capital / revenue, annual change: 3.9 pp

- Working capital / revenue, change between three-year averages: 28.8 pp

- Working capital / revenue, final three-year average: 33.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: -0.71×

- FY2024: -5.11×

- FY2025: -16.37×

- FY2026: 0.80×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 8.9% vs 2.6%

- Per-share earnings: -0.00 to 0.09 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 9.5%

- Ordinary dilution, 5-year annual growth: 2.5%

- Market cap gain: AUD 18B

- Cumulative retained earnings: AUD 1.4B

- Diluted shares, 10-year annual growth: 9.5%

- Diluted shares, 5-year annual growth: 2.5%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value change: AUD 0.09

- Per-share value, starting three-year median: AUD -0.00

- Per-share value, ending three-year median: AUD 0.09

- Buybacks concentrated in cheaper years (correlation): -0.50

- Average buyback yield: 0.3%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: AUD 2.1M

- Cumulative net income, 10 years: AUD 1.4B

- ROIC, first three-year median: 8.9%

- ROIC, last three-year median: 2.6%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD -0.00

- FY2018: AUD 0.07

- FY2019: AUD 0.11

- FY2020: AUD -0.02

- FY2021: AUD 0.17

- FY2022: AUD 0.60

- FY2023: AUD 0.33

- FY2024: AUD 0.09

- FY2025: AUD 0.01

- FY2026: AUD 0.22

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -2.9%

- Receivables to sales index (DSRI): 2.06×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.56×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -4.8%

- FY2018: -8.5%

- FY2019: -2.7%

- FY2020: -5.1%

- FY2021: -3.7%

- FY2022: 4.0%

- FY2023: -3.8%

- FY2024: 1.8%

- FY2025: -3.3%

- FY2026: -2.9%

## Holders

## Price story

Down 44% since May 2026 · "Lynas flags uncertainty over Texas rare earths plant, posts profit slump" (finance.yahoo.com, Aug 2025) · sales +80.2%

Story as of 2026-10-16T10:00:07.583Z; price observation 2026-10-15.

- 2025-08-27: Lynas flags uncertainty over Texas rare earths plant, posts profit slump ([finance.yahoo.com](https://finance.yahoo.com/news/australias-lynas-posts-over-90-232054825.html))

### Sales · FY2025–2026

sales +80.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 257M 

- FY2018: AUD 374M 

- FY2019: AUD 364M 

- FY2020: AUD 314M 

- FY2021: AUD 489M 

- FY2022: AUD 920M 

- FY2023: AUD 739M 

- FY2024: AUD 464M 

- FY2025: AUD 543M 

- FY2026: AUD 978M 

### Gross margin · FY2026

gross margin 34.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 5.7% 

- FY2018: 32.4% 

- FY2019: 35.7% 

- FY2020: 34.5% 

- FY2021: 36.7% 

- FY2022: 62.1% 

- FY2023: 44.0% 

- FY2024: 39.7% 

- FY2025: 33.0% 

- FY2026: 34.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in other industrial metals & mining; annual sales are AUD 977.9 million.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:30.307Z); FY2026: revenue 977945000; grossProfit 340718000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LYC.AU: Lynas Rare Earths Limited, together with its subsidiaries, engages in the exploration, development, mining, extraction, and processing of rare earth minerals in Australia and Malaysia. The company holds interests in the Mt Weld rare earths mine located in Laverton Western Australia; a rare earths processing facility in Kalgoorlie, Western Australia; and an advanced materials plant in Gebeng Industrial Estate, Malaysia. It also offers light rare earths, including lanthanum, cerium, praseodymium, and neodymium; heavy rare earth comprising of samarium, europium, gadolinium, terbium, and dysprosium; and SEGH, a mixed heavy rare earth compound containing mixed samarium, europium, gadolinium, holmium, dysprosium, and terbium. In addition, the company develops and operates advanced material processing and concentration plants; and develops processing opportunities, as well as offers corporate services. The company was formerly known as Lynas Corporation Limited and changed its name to Lynas Corporation Limited in November 2020. Lynas Rare Earths Limited was incorporated in 1983 and is headquartered in Perth, Australia.

### Why customers stay

Margins ranged from 33% to 39.7% during 2024–26; it earns 8.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:30.307Z); FY2024: grossProfit / revenue = 39.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:30.307Z); FY2025: grossProfit / revenue = 33%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:30.307Z); FY2026: grossProfit / revenue = 34.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:30.307Z); 10-year return on capital observations [[2017,-0.0169774681538953],[2018,0.130579591831799],[2019,0.08927488109886932],[2020,-0.007975231527507683],[2021,0.269006037106101],[2022,0.6210733457937054],[2023,0.18615551540407976],[2024,0.026434738950834737],[2025,0.0025231462643804234],[2026,0.07995697708891629]]; median 0.0846159290938928. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 15.8% of cash earnings on expansion; earns 14.9% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:30.307Z); FY2017: growth capex 0; upkeep 2276000; owner earnings 42000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:30.307Z); FY2018: growth capex 0; upkeep 24220000; owner earnings 70553000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:30.307Z); FY2019: growth capex 0; upkeep 32279000; owner earnings 91509000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:30.307Z); FY2020: growth capex 0; upkeep 12089000; owner earnings 42287000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:30.307Z); FY2021: growth capex 0; upkeep 40444000; owner earnings 186349000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:30.307Z); FY2022: growth capex 121724000; upkeep 64578000; owner earnings 540091600. Growth capex / owner earnings = 0.22537658426829818.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:30.307Z); FY2026: growth capex 28222000; upkeep 150046000; owner earnings 178621000. Growth capex / owner earnings = 0.15799933938338717.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:30.307Z); Incremental return on capital 0.148639854827385, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:30.307Z); Dividend observations: [[2017,0],[2018,0],[2019,0],[2020,0],[2021,394133000],[2022,0],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:30.307Z); FY2026: cash repurchases 18287000 AUD.

### Are managers owners

Insiders own 11.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LYC.AU SharesStats.PercentInsiders = 11.399 percentage points; cache date 2026-10-16.

### What the price says

The price is 11.3 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:30.307Z); Closing price 10.81 AUD; reporting-to-trading FX 1; FY2026 annual sales per share 0.9565996272377425; price multiple 11.300443458476703. FY2026 cash earnings/share 0.1747222819451327. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 0.56 per share

- 2016-11: AUD 0.67 per share

- 2016-12: AUD 0.73 per share

- 2017-01: AUD 0.85 per share

- 2017-02: AUD 1.15 per share

- 2017-03: AUD 0.92 per share

- 2017-04: AUD 0.91 per share

- 2017-05: AUD 0.85 per share

- 2017-06: AUD 1.05 per share

- 2017-07: AUD 1.35 per share

- 2017-08: AUD 1.55 per share

- 2017-09: AUD 1.95 per share

- 2017-10: AUD 1.80 per share

- 2017-11: AUD 2.02 per share

- 2017-12: AUD 2.18 per share

- 2018-01: AUD 2.16 per share

- 2018-02: AUD 2.13 per share

- 2018-03: AUD 2.46 per share

- 2018-04: AUD 2.58 per share

- 2018-05: AUD 2.42 per share

- 2018-06: AUD 2.34 per share

- 2018-07: AUD 2.27 per share

- 2018-08: AUD 2.19 per share

- 2018-09: AUD 1.60 per share

- 2018-10: AUD 2.08 per share

- 2018-11: AUD 2.10 per share

- 2018-12: AUD 1.59 per share

- 2019-01: AUD 1.68 per share

- 2019-02: AUD 1.76 per share

- 2019-03: AUD 2.09 per share

- 2019-04: AUD 1.98 per share

- 2019-05: AUD 3.05 per share

- 2019-06: AUD 2.57 per share

- 2019-07: AUD 2.61 per share

- 2019-08: AUD 2.39 per share

- 2019-09: AUD 2.71 per share

- 2019-10: AUD 2.48 per share

- 2019-11: AUD 2.17 per share

- 2019-12: AUD 2.33 per share

- 2020-01: AUD 2.19 per share

- 2020-02: AUD 1.85 per share

- 2020-03: AUD 1.45 per share

- 2020-04: AUD 1.75 per share

- 2020-05: AUD 2.06 per share

- 2020-06: AUD 1.94 per share

- 2020-07: AUD 2.23 per share

- 2020-08: AUD 2.44 per share

- 2020-09: AUD 2.32 per share

- 2020-10: AUD 2.83 per share

- 2020-11: AUD 3.78 per share

- 2020-12: AUD 3.98 per share

- 2021-01: AUD 4.78 per share

- 2021-02: AUD 5.98 per share

- 2021-03: AUD 6.17 per share

- 2021-04: AUD 5.50 per share

- 2021-05: AUD 5.52 per share

- 2021-06: AUD 5.71 per share

- 2021-07: AUD 7.34 per share

- 2021-08: AUD 6.88 per share

- 2021-09: AUD 6.71 per share

- 2021-10: AUD 7.33 per share

- 2021-11: AUD 8.87 per share

- 2021-12: AUD 10.17 per share

- 2022-01: AUD 8.95 per share

- 2022-02: AUD 10.23 per share

- 2022-03: AUD 10.76 per share

- 2022-04: AUD 9.16 per share

- 2022-05: AUD 9.85 per share

- 2022-06: AUD 8.73 per share

- 2022-07: AUD 8.71 per share

- 2022-08: AUD 8.88 per share

- 2022-09: AUD 7.56 per share

- 2022-10: AUD 8.33 per share

- 2022-11: AUD 8.64 per share

- 2022-12: AUD 7.85 per share

- 2023-01: AUD 9.39 per share

- 2023-02: AUD 8.20 per share

- 2023-03: AUD 6.34 per share

- 2023-04: AUD 6.43 per share

- 2023-05: AUD 7.51 per share

- 2023-06: AUD 6.85 per share

- 2023-07: AUD 6.73 per share

- 2023-08: AUD 7.19 per share

- 2023-09: AUD 6.79 per share

- 2023-10: AUD 7.05 per share

- 2023-11: AUD 6.62 per share

- 2023-12: AUD 7.16 per share

- 2024-01: AUD 5.88 per share

- 2024-02: AUD 5.84 per share

- 2024-03: AUD 5.69 per share

- 2024-04: AUD 6.56 per share

- 2024-05: AUD 6.66 per share

- 2024-06: AUD 5.93 per share

- 2024-07: AUD 6.28 per share

- 2024-08: AUD 7.06 per share

- 2024-09: AUD 8.02 per share

- 2024-10: AUD 7.60 per share

- 2024-11: AUD 6.88 per share

- 2024-12: AUD 6.43 per share

- 2025-01: AUD 6.33 per share

- 2025-02: AUD 6.79 per share

- 2025-03: AUD 6.91 per share

- 2025-04: AUD 8.58 per share

- 2025-05: AUD 7.89 per share

- 2025-06: AUD 8.61 per share

- 2025-07: AUD 10.47 per share

- 2025-08: AUD 13.87 per share

- 2025-09: AUD 16.81 per share

- 2025-10: AUD 15.25 per share

- 2025-11: AUD 14.47 per share

- 2025-12: AUD 12.44 per share

- 2026-01: AUD 14.90 per share

- 2026-02: AUD 18.98 per share

- 2026-03: AUD 18.96 per share

- 2026-04: AUD 19.01 per share

- 2026-05: AUD 19.19 per share

- 2026-06: AUD 18.06 per share

- 2026-07: AUD 14.09 per share

- 2026-08: AUD 15.94 per share

- 2026-09: AUD 13.83 per share

- 2026-10: AUD 11.67 per share

## Annual estimated value (AUD per share)

- FY2019: low AUD 1.04 per share, central AUD 1.16 per share, high AUD 1.33 per share

- FY2020: low AUD 0.78 per share, central AUD 0.88 per share, high AUD 1.00 per share

- FY2021: low AUD 1.85 per share, central AUD 2.01 per share, high AUD 2.21 per share

- FY2022: low AUD 4.52 per share, central AUD 6.01 per share, high AUD 6.87 per share

- FY2023: low AUD 3.76 per share, central AUD 4.92 per share, high AUD 5.59 per share

- FY2024: low AUD 1.27 per share, central AUD 1.37 per share, high AUD 1.51 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.