A-MARK PRECIOUS METALS INC (AMRK) Stock Fundamental Analysis
NASDAQ:AMRK - Nasdaq - US00181T1079 - Common Stock - Currency: USD
AMRK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 19 industry peers in the Distributors industry. AMRK has only an average score on both its financial health and profitability. AMRK is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AMRK was profitable.
In the past year AMRK had a positive cash flow from operations.
In the past 5 years AMRK has always been profitable.
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 1.74%, AMRK is in line with its industry, outperforming 47.37% of the companies in the same industry.
AMRK has a Return On Equity of 5.89%. This is comparable to the rest of the industry: AMRK outperforms 47.37% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.37%, AMRK is doing worse than 63.16% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AMRK is significantly below the industry average of 18.59%.
The last Return On Invested Capital (2.37%) for AMRK is well below the 3 year average (9.40%), which needs to be investigated, but indicates that AMRK had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 5.89% | ||
| ROIC | 2.37% |
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
With a Profit Margin value of 0.35%, AMRK perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
AMRK's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 0.44%, AMRK is doing worse than 63.16% of the companies in the same industry.
In the last couple of years the Operating Margin of AMRK has grown nicely.
With a Gross Margin value of 1.57%, AMRK is not doing good in the industry: 84.21% of the companies in the same industry are doing better.
AMRK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.44% | ||
| PM (TTM) | 0.35% | ||
| 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.
Compared to 1 year ago, AMRK has less shares outstanding
AMRK has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AMRK has an improved debt to assets ratio.
2.2 Solvency
AMRK has an Altman-Z score of 5.97. This indicates that AMRK is financially healthy and has little risk of bankruptcy at the moment.
AMRK has a Altman-Z score of 5.97. This is in the better half of the industry: AMRK outperforms 68.42% of its industry peers.
AMRK has a debt to FCF ratio of 5.79. This is a neutral value as AMRK would need 5.79 years to pay back of all of its debts.
The Debt to FCF ratio of AMRK (5.79) is better than 63.16% of its industry peers.
A Debt/Equity ratio of 1.43 is on the high side and indicates that AMRK has dependencies on debt financing.
AMRK's Debt to Equity ratio of 1.43 is on the low side compared to the rest of the industry. AMRK is outperformed by 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 5.97 |
ROIC/WACC0.31
WACC7.64%
2.3 Liquidity
A Current Ratio of 1.56 indicates that AMRK should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.56, AMRK is in line with its industry, outperforming 42.11% of the companies in the same industry.
A Quick Ratio of 0.39 indicates that AMRK may have some problems paying its short term obligations.
AMRK has a Quick ratio of 0.39. This is amonst the worse of the industry: AMRK underperforms 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
AMRK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.11%.
Measured over the past years, AMRK shows a very strong growth in Earnings Per Share. The EPS has been growing by 69.05% on average per year.
The Revenue has been growing slightly by 6.78% in the past year.
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)-64.11%
EPS 3Y-40.58%
EPS 5Y69.05%
EPS Q2Q%-128.57%
Revenue 1Y (TTM)6.78%
Revenue growth 3Y8.41%
Revenue growth 5Y15.19%
Sales Q2Q%15.26%
3.2 Future
AMRK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.79% yearly.
Based on estimates for the next years, AMRK will show a small growth in Revenue. The Revenue will grow by 7.38% on average per year.
EPS Next Y-66.15%
EPS Next 2Y-0.79%
EPS Next 3Y13.16%
EPS Next 5Y24.79%
Revenue Next Year14.97%
Revenue Next 2Y8.72%
Revenue Next 3Y7.7%
Revenue Next 5Y7.38%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
AMRK is valuated rather expensively with a Price/Earnings ratio of 19.52.
63.16% of the companies in the same industry are more expensive than AMRK, based on the Price/Earnings ratio.
AMRK is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.84, the valuation of AMRK can be described as reasonable.
Based on the Price/Forward Earnings ratio, AMRK is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AMRK to the average of the S&P500 Index (21.90), we can say AMRK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.52 | ||
| Fwd PE | 10.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMRK indicates a somewhat cheap valuation: AMRK is cheaper than 63.16% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AMRK is valued cheaper than 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.55 | ||
| EV/EBITDA | 11.59 |
4.3 Compensation for Growth
AMRK's earnings are expected to grow with 13.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y-0.79%
EPS Next 3Y13.16%
5. Dividend
5.1 Amount
AMRK has a Yearly Dividend Yield of 3.65%.
AMRK's Dividend Yield is rather good when compared to the industry average which is at 2.65. AMRK pays more dividend than 100.00% of the companies in the same industry.
AMRK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
5.2 History
The dividend of AMRK is nicely growing with an annual growth rate of 72.09%!
AMRK has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)72.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
48.67% of the earnings are spent on dividend by AMRK. This is a bit on the high side, but may be sustainable.
The dividend of AMRK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP48.67%
EPS Next 2Y-0.79%
EPS Next 3Y13.16%
22.84
+0.11 (+0.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners60.11%
Inst Owner Change5.7%
Ins Owners16.34%
Ins Owner Change2.88%
Market Cap562.32M
Analysts80
Price Target40.8 (78.63%)
Short Float %8.1%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
Yearly Dividend1.81
Dividend Growth(5Y)72.09%
DP48.67%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-81.89%
Min EPS beat(2)-110%
Max EPS beat(2)-53.77%
EPS beat(4)0
Avg EPS beat(4)-59.61%
Min EPS beat(4)-110%
Max EPS beat(4)-16.17%
EPS beat(8)1
Avg EPS beat(8)-43.72%
EPS beat(12)4
Avg EPS beat(12)-23.07%
EPS beat(16)8
Avg EPS beat(16)-2.8%
Revenue beat(2)2
Avg Revenue beat(2)6.64%
Min Revenue beat(2)5.36%
Max Revenue beat(2)7.92%
Revenue beat(4)3
Avg Revenue beat(4)1.45%
Min Revenue beat(4)-8.98%
Max Revenue beat(4)7.92%
Revenue beat(8)6
Avg Revenue beat(8)9.1%
Revenue beat(12)7
Avg Revenue beat(12)5.52%
Revenue beat(16)9
Avg Revenue beat(16)3.76%
PT rev (1m)-3.85%
PT rev (3m)-5.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-31.1%
EPS NY rev (1m)-28.28%
EPS NY rev (3m)-58.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.52 | ||
| Fwd PE | 10.84 | ||
| P/S | 0.05 | ||
| P/FCF | 3.55 | ||
| P/OCF | 3.34 | ||
| P/B | 0.87 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 11.59 |
EPS(TTM)1.17
EY5.12%
EPS(NY)2.11
Fwd EY9.22%
FCF(TTM)6.44
FCFY28.21%
OCF(TTM)6.83
OCFY29.92%
SpS446.45
BVpS26.14
TBVpS12.82
PEG (NY)N/A
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 5.89% | ||
| ROCE | 4.63% | ||
| ROIC | 2.37% | ||
| ROICexc | 2.54% | ||
| ROICexgc | 3.23% | ||
| OM | 0.44% | ||
| PM (TTM) | 0.35% | ||
| GM | 1.57% | ||
| FCFM | 1.44% |
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 Turnover5.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 5.79 | ||
| Debt/EBITDA | 13.91 | ||
| Cap/Depr | 55.95% | ||
| Cap/Sales | 0.09% | ||
| Interest Coverage | 1.21 | ||
| Cash Conversion | 254.83% | ||
| Profit Quality | 418.11% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 5.97 |
F-Score5
WACC7.64%
ROIC/WACC0.31
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)-64.11%
EPS 3Y-40.58%
EPS 5Y69.05%
EPS Q2Q%-128.57%
EPS Next Y-66.15%
EPS Next 2Y-0.79%
EPS Next 3Y13.16%
EPS Next 5Y24.79%
Revenue 1Y (TTM)6.78%
Revenue growth 3Y8.41%
Revenue growth 5Y15.19%
Sales Q2Q%15.26%
Revenue Next Year14.97%
Revenue Next 2Y8.72%
Revenue Next 3Y7.7%
Revenue Next 5Y7.38%
EBIT growth 1Y-55.53%
EBIT growth 3Y-21.37%
EBIT growth 5Y128.12%
EBIT Next Year-27.57%
EBIT Next 3Y19.53%
EBIT Next 5Y16.87%
FCF growth 1Y648.17%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y466.43%
OCF growth 3YN/A
OCF growth 5YN/A