A-MARK PRECIOUS METALS INC (AMRK) Stock Fundamental Analysis
NASDAQ:AMRK - Nasdaq - US00181T1079 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to AMRK. AMRK was compared to 15 industry peers in the Distributors industry. There are concerns on the financial health of AMRK while its profitability can be described as average. 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.
The reported operating cash flow has been mixed in the past 5 years: AMRK reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of 2.75%, AMRK perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
AMRK's Return On Equity of 8.40% is in line compared to the rest of the industry. AMRK outperforms 50.00% of its industry peers.
AMRK has a worse Return On Invested Capital (2.91%) than 64.29% of its industry peers.
AMRK had an Average Return On Invested Capital over the past 3 years of 9.40%. This is significantly below the industry average of 18.73%.
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
Looking at the Profit Margin, with a value of 0.49%, AMRK is in line with its industry, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Profit Margin of AMRK has grown nicely.
AMRK's Operating Margin of 0.52% is on the low side compared to the rest of the industry. AMRK is outperformed by 64.29% of its industry peers.
AMRK's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 1.57%, AMRK is doing worse than 92.86% of the companies in the same industry.
In the last couple of years the Gross Margin of AMRK has grown nicely.
| 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
AMRK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, AMRK has less shares outstanding
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 6.77 indicates that AMRK is not in any danger for bankruptcy at the moment.
AMRK's Altman-Z score of 6.77 is fine compared to the rest of the industry. AMRK outperforms 78.57% of its industry peers.
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.
With a Debt to FCF ratio value of 6.36, AMRK is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.33 is on the high side and indicates that AMRK has dependencies on debt financing.
AMRK's Debt to Equity ratio of 1.33 is on the low side compared to the rest of the industry. AMRK is outperformed by 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 6.36 | ||
| Altman-Z | 6.77 |
ROIC/WACC0.32
WACC9.25%
2.3 Liquidity
A Current Ratio of 1.58 indicates that AMRK should not have too much problems paying its short term obligations.
With a Current ratio value of 1.58, AMRK is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
A Quick Ratio of 0.31 indicates that AMRK may have some problems paying its short term obligations.
The Quick ratio of AMRK (0.31) is worse than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
The earnings per share for AMRK have decreased strongly by -68.07% in the last year.
The Earnings Per Share has been growing by 69.05% on average over the past years. This is a very strong growth
Looking at the last year, AMRK shows a small growth in Revenue. The Revenue has grown by 5.93% in the last 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)-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
AMRK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.79% yearly.
AMRK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.74% yearly.
EPS Next Y-2.1%
EPS Next 2Y31.72%
EPS Next 3Y18.49%
EPS Next 5Y24.79%
Revenue Next Year6.32%
Revenue Next 2Y4.32%
Revenue Next 3Y-1.89%
Revenue Next 5Y0.74%
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
The Price/Earnings ratio is 18.59, which indicates a rather expensive current valuation of AMRK.
Compared to the rest of the industry, the Price/Earnings ratio of AMRK is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 29.63. AMRK is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 7.21, the valuation of AMRK can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMRK indicates a rather cheap valuation: AMRK is cheaper than 92.86% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. AMRK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.59 | ||
| Fwd PE | 7.21 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AMRK.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMRK indicates a rather cheap valuation: AMRK is cheaper than 92.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.78 | ||
| EV/EBITDA | 11.82 |
4.3 Compensation for Growth
A more expensive valuation may be justified as AMRK's earnings are expected to grow with 18.49% in the coming years.
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y31.72%
EPS Next 3Y18.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.76%, AMRK has a reasonable but not impressive dividend return.
AMRK's Dividend Yield is a higher than the industry average which is at 2.61.
AMRK's Dividend Yield is a higher than the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
5.2 History
The dividend of AMRK is nicely growing with an annual growth rate of 72.09%!
AMRK has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of AMRK decreased 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 2Y31.72%
EPS Next 3Y18.49%
26.77
-0.68 (-2.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners65.11%
Inst Owner Change-11.71%
Ins Owners15.62%
Ins Owner Change-1.27%
Market Cap616.25M
Analysts78.18
Price Target45.49 (69.93%)
Short Float %8.83%
Short Ratio5.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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)-6.69%
EPS NQ rev (1m)-19.26%
EPS NQ rev (3m)-57.17%
EPS NY rev (1m)-19.31%
EPS NY rev (3m)-39.65%
Revenue NQ rev (1m)6.67%
Revenue NQ rev (3m)49.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.59 | ||
| Fwd PE | 7.21 | ||
| P/S | 0.06 | ||
| P/FCF | 4.78 | ||
| P/OCF | 4.25 | ||
| P/B | 1.01 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 11.82 |
EPS(TTM)1.44
EY5.38%
EPS(NY)3.71
Fwd EY13.87%
FCF(TTM)5.59
FCFY20.9%
OCF(TTM)6.31
OCFY23.55%
SpS460.17
BVpS26.62
TBVpS13.84
PEG (NY)N/A
PEG (5Y)0.27
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 | 6.77 |
F-Score5
WACC9.25%
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-2.1%
EPS Next 2Y31.72%
EPS Next 3Y18.49%
EPS Next 5Y24.79%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y8.41%
Revenue growth 5Y15.19%
Sales Q2Q%31.92%
Revenue Next Year6.32%
Revenue Next 2Y4.32%
Revenue Next 3Y-1.89%
Revenue Next 5Y0.74%
EBIT growth 1Y-63.2%
EBIT growth 3Y-21.37%
EBIT growth 5Y128.12%
EBIT Next Year36.16%
EBIT Next 3Y31.79%
EBIT Next 5Y21.83%
FCF growth 1Y169.73%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y182.37%
OCF growth 3YN/A
OCF growth 5YN/A