A-MARK PRECIOUS METALS INC (AMRK) Stock Fundamental Analysis
NASDAQ:AMRK - Nasdaq - US00181T1079 - Common Stock - Currency: USD
Overall AMRK gets a fundamental rating of 5 out of 10. We evaluated AMRK against 17 industry peers in the Distributors industry. AMRK has an average financial health and profitability rating. AMRK has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
AMRK had positive earnings in the past year.
In the past year AMRK had a positive cash flow from operations.
AMRK had positive earnings in each of the past 5 years.
In multiple years AMRK reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.75%, AMRK is in line with its industry, outperforming 52.94% of the companies in the same industry.
With a Return On Equity value of 8.40%, AMRK perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.91%, AMRK is in line with its industry, outperforming 41.18% of the companies in the same industry.
AMRK had an Average Return On Invested Capital over the past 3 years of 9.40%. This is significantly below the industry average of 21.63%.
The 3 year average ROIC (9.40%) for AMRK is well above the current ROIC(2.91%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 8.4% | ||
| ROIC | 2.91% |
ROA(3y)7.68%
ROA(5y)8.09%
ROE(3y)21.5%
ROE(5y)27.74%
ROIC(3y)9.4%
ROIC(5y)9.18%
1.3 Margins
The Profit Margin of AMRK (0.49%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of AMRK has grown nicely.
Looking at the Operating Margin, with a value of 0.52%, AMRK is in line with its industry, outperforming 41.18% of the companies in the same industry.
In the last couple of years the Operating Margin of AMRK has grown nicely.
AMRK has a worse Gross Margin (1.57%) than 82.35% of its industry peers.
AMRK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.52% | ||
| PM (TTM) | 0.49% | ||
| GM | 1.57% |
OM growth 3Y-27.47%
OM growth 5Y98.04%
PM growth 3Y-30.4%
PM growth 5Y72.71%
GM growth 3Y-13.51%
GM growth 5Y21.7%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AMRK is creating some value.
The number of shares outstanding for AMRK has been reduced compared to 1 year ago.
The number of shares outstanding for AMRK has been increased compared to 5 years ago.
AMRK has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.75 indicates that AMRK is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.75, AMRK belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
The Debt to FCF ratio of AMRK is 6.36, which is on the high side as it means it would take AMRK, 6.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AMRK (6.36) is comparable to the rest of the industry.
AMRK has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
AMRK has a worse Debt to Equity ratio (1.33) than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 6.36 | ||
| Altman-Z | 6.75 |
ROIC/WACC0.32
WACC9.21%
2.3 Liquidity
AMRK has a Current Ratio of 1.58. This is a normal value and indicates that AMRK is financially healthy and should not expect problems in meeting its short term obligations.
AMRK has a Current ratio of 1.58. This is comparable to the rest of the industry: AMRK outperforms 47.06% of its industry peers.
AMRK has a Quick Ratio of 1.58. This is a bad value and indicates that AMRK is not financially healthy enough and could expect problems in meeting its short term obligations.
AMRK has a Quick ratio of 0.31. This is amonst the worse of the industry: AMRK underperforms 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
AMRK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -68.07%.
The Earnings Per Share has been growing by 69.05% on average over the past years. This is a very strong growth
AMRK shows a small growth in Revenue. In the last year, the Revenue has grown by 5.93%.
AMRK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.19% yearly.
EPS 1Y (TTM)-68.07%
EPS 3Y-40.58%
EPS 5Y69.05%
EPS Q2Q%-52.63%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y8.41%
Revenue growth 5Y15.19%
Sales Q2Q%31.92%
3.2 Future
The Earnings Per Share is expected to grow by 24.79% on average over the next years. This is a very strong growth
Based on estimates for the next years, AMRK will show a small growth in Revenue. The Revenue will grow by 6.44% on average per year.
EPS Next Y-17.66%
EPS Next 2Y18.71%
EPS Next 3Y17%
EPS Next 5Y24.79%
Revenue Next Year9.98%
Revenue Next 2Y5.51%
Revenue Next 3Y6.62%
Revenue Next 5Y6.44%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.10 indicates a rather expensive valuation of AMRK.
Compared to the rest of the industry, the Price/Earnings ratio of AMRK indicates a somewhat cheap valuation: AMRK is cheaper than 70.59% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.33, AMRK is valued a bit cheaper.
With a Price/Forward Earnings ratio of 8.17, the valuation of AMRK can be described as very reasonable.
88.24% of the companies in the same industry are more expensive than AMRK, based on the Price/Forward Earnings ratio.
AMRK is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.37, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 8.17 |
4.2 Price Multiples
AMRK's Enterprise Value to EBITDA is on the same level as the industry average.
AMRK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AMRK is cheaper than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.72 | ||
| EV/EBITDA | 11.29 |
4.3 Compensation for Growth
AMRK's earnings are expected to grow with 17.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y18.71%
EPS Next 3Y17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.39%, AMRK has a reasonable but not impressive dividend return.
AMRK's Dividend Yield is rather good when compared to the industry average which is at 2.61. AMRK pays more dividend than 88.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, AMRK pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
5.2 History
On average, the dividend of AMRK grows each year by 72.09%, which is quite nice.
AMRK has been paying a dividend for at least 10 years, so it has a reliable track record.
AMRK has decreased its dividend in the last 3 years.
Dividend Growth(5Y)72.09%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
AMRK pays out 35.80% of its income as dividend. This is a sustainable payout ratio.
AMRK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.8%
EPS Next 2Y18.71%
EPS Next 3Y17%
24.63
+0.54 (+2.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners61.06%
Inst Owner Change-0.09%
Ins Owners15.73%
Ins Owner Change3.18%
Market Cap608.11M
Analysts78.18
Price Target43.04 (74.75%)
Short Float %8.6%
Short Ratio5.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
Yearly Dividend1.81
Dividend Growth(5Y)72.09%
DP35.8%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-56.13%
Min EPS beat(2)-58.5%
Max EPS beat(2)-53.77%
EPS beat(4)0
Avg EPS beat(4)-49.6%
Min EPS beat(4)-69.98%
Max EPS beat(4)-16.17%
EPS beat(8)2
Avg EPS beat(8)-27.08%
EPS beat(12)5
Avg EPS beat(12)-9.49%
EPS beat(16)9
Avg EPS beat(16)23.08%
Revenue beat(2)2
Avg Revenue beat(2)4.71%
Min Revenue beat(2)1.5%
Max Revenue beat(2)7.92%
Revenue beat(4)3
Avg Revenue beat(4)6.58%
Min Revenue beat(4)-8.98%
Max Revenue beat(4)25.88%
Revenue beat(8)6
Avg Revenue beat(8)9.38%
Revenue beat(12)6
Avg Revenue beat(12)4.48%
Revenue beat(16)9
Avg Revenue beat(16)4.81%
PT rev (1m)0%
PT rev (3m)-5.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-36.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-32.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 8.17 | ||
| P/S | 0.06 | ||
| P/FCF | 4.72 | ||
| P/OCF | 4.19 | ||
| P/B | 0.99 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | 11.29 |
EPS(TTM)1.44
EY5.85%
EPS(NY)3.02
Fwd EY12.24%
FCF(TTM)5.22
FCFY21.18%
OCF(TTM)5.88
OCFY23.87%
SpS429.04
BVpS24.82
TBVpS12.91
PEG (NY)N/A
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 8.4% | ||
| ROCE | 5.93% | ||
| ROIC | 2.91% | ||
| ROICexc | 2.99% | ||
| ROICexgc | 3.73% | ||
| OM | 0.52% | ||
| PM (TTM) | 0.49% | ||
| GM | 1.57% | ||
| FCFM | 1.22% |
ROA(3y)7.68%
ROA(5y)8.09%
ROE(3y)21.5%
ROE(5y)27.74%
ROIC(3y)9.4%
ROIC(5y)9.18%
ROICexc(3y)9.72%
ROICexc(5y)9.77%
ROICexgc(3y)11.49%
ROICexgc(5y)11.69%
ROCE(3y)22.11%
ROCE(5y)23.12%
ROICexcg growth 3Y-34.4%
ROICexcg growth 5Y100.78%
ROICexc growth 3Y-33.9%
ROICexc growth 5Y92.53%
OM growth 3Y-27.47%
OM growth 5Y98.04%
PM growth 3Y-30.4%
PM growth 5Y72.71%
GM growth 3Y-13.51%
GM growth 5Y21.7%
F-Score5
Asset Turnover5.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 6.36 | ||
| Debt/EBITDA | 11.64 | ||
| Cap/Depr | 108.01% | ||
| Cap/Sales | 0.15% | ||
| Interest Coverage | 1.46 | ||
| Cash Conversion | 207.41% | ||
| Profit Quality | 250.1% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z | 6.75 |
F-Score5
WACC9.21%
ROIC/WACC0.32
Cap/Depr(3y)75.66%
Cap/Depr(5y)56.13%
Cap/Sales(3y)0.1%
Cap/Sales(5y)0.07%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-68.07%
EPS 3Y-40.58%
EPS 5Y69.05%
EPS Q2Q%-52.63%
EPS Next Y-17.66%
EPS Next 2Y18.71%
EPS Next 3Y17%
EPS Next 5Y24.79%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y8.41%
Revenue growth 5Y15.19%
Sales Q2Q%31.92%
Revenue Next Year9.98%
Revenue Next 2Y5.51%
Revenue Next 3Y6.62%
Revenue Next 5Y6.44%
EBIT growth 1Y-63.2%
EBIT growth 3Y-21.37%
EBIT growth 5Y128.12%
EBIT Next Year1.42%
EBIT Next 3Y17.51%
EBIT Next 5Y15.3%
FCF growth 1Y169.73%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y182.37%
OCF growth 3YN/A
OCF growth 5YN/A