29.25 USD
+0.54 (+1.88%)
29.26 USD
+0.01 (+0.03%)
We assign a fundamental rating of 5 out of 10 to AMRK. AMRK was compared to 22 industry peers in the Distributors industry. The financial health of AMRK is average, but there are quite some concerns on its profitability. AMRK has a decent growth rate and is not valued too expensively.
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
- AMRK has a Return On Assets (0.29%) which is in line with its industry peers.
- The Return On Equity of AMRK (1.15%) is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 2.48%, AMRK is in line with its industry, outperforming 43.48% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for AMRK is significantly below the industry average of 14.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.29% | ||
| ROE | 1.15% | ||
| ROIC | 2.48% |
ROA(3y)4.88%
ROA(5y)7.45%
ROE(3y)13.35%
ROE(5y)22.24%
ROIC(3y)6.45%
ROIC(5y)8.55%
1.3 Margins
- AMRK has a Profit Margin of 0.06%. This is comparable to the rest of the industry: AMRK outperforms 47.83% of its industry peers.
- AMRK's Profit Margin has declined in the last couple of years.
- AMRK has a Operating Margin of 0.39%. This is in the lower half of the industry: AMRK underperforms 60.87% of its industry peers.
- In the last couple of years the Operating Margin of AMRK has declined.
- AMRK has a Gross Margin of 2.01%. This is in the lower half of the industry: AMRK underperforms 78.26% of its industry peers.
- In the last couple of years the Gross Margin of AMRK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.39% | ||
| PM (TTM) | 0.06% | ||
| GM | 2.01% |
OM growth 3Y-38.17%
OM growth 5Y-6.56%
PM growth 3Y-54.03%
PM growth 5Y-22.34%
GM growth 3Y-15.72%
GM growth 5Y9.38%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AMRK is destroying value.
- The number of shares outstanding for AMRK has been increased compared to 1 year ago.
- Compared to 5 years ago, AMRK has more shares outstanding
- The debt/assets ratio for AMRK has been reduced compared to a year ago.
2.2 Solvency
- AMRK has an Altman-Z score of 5.43. This indicates that AMRK is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 5.43, AMRK is doing good in the industry, outperforming 69.57% of the companies in the same industry.
- AMRK has a debt to FCF ratio of 1.58. This is a very positive value and a sign of high solvency as it would only need 1.58 years to pay back of all of its debts.
- AMRK has a better Debt to FCF ratio (1.58) than 82.61% of its industry peers.
- AMRK has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
- AMRK's Debt to Equity ratio of 1.13 is on the low side compared to the rest of the industry. AMRK is outperformed by 69.57% of its industry peers.
- Even though the debt/equity ratio score it not favorable for AMRK, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 1.58 | ||
| Altman-Z | 5.43 |
ROIC/WACC0.28
WACC8.96%
2.3 Liquidity
- A Current Ratio of 1.37 indicates that AMRK should not have too much problems paying its short term obligations.
- The Current ratio of AMRK (1.37) is comparable to the rest of the industry.
- A Quick Ratio of 0.58 indicates that AMRK may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.58, AMRK is doing worse than 78.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- The earnings per share for AMRK have decreased strongly by -66.67% in the last year.
- AMRK shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.41% yearly.
- Looking at the last year, AMRK shows a very strong growth in Revenue. The Revenue has grown by 20.29%.
- The Revenue has been growing by 14.99% on average over the past years. This is quite good.
EPS 1Y (TTM)-66.67%
EPS 3Y-43.33%
EPS 5Y-14.41%
EPS Q2Q%-110.81%
Revenue 1Y (TTM)20.29%
Revenue growth 3Y10.4%
Revenue growth 5Y14.99%
Sales Q2Q%35.57%
3.2 Future
- The Earnings Per Share is expected to grow by 46.99% on average over the next years. This is a very strong growth
- AMRK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.66% yearly.
EPS Next Y50.66%
EPS Next 2Y78.9%
EPS Next 3Y66.62%
EPS Next 5Y46.99%
Revenue Next Year11.5%
Revenue Next 2Y8.89%
Revenue Next 3Y10.04%
Revenue Next 5Y8.66%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 50.43, which means the current valuation is very expensive for AMRK.
- AMRK's Price/Earnings is on the same level as the industry average.
- AMRK is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 9.23, which indicates a very decent valuation of AMRK.
- 100.00% of the companies in the same industry are more expensive than AMRK, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of AMRK to the average of the S&P500 Index (25.98), we can say AMRK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.43 | ||
| Fwd PE | 9.23 |
4.2 Price Multiples
- 60.87% of the companies in the same industry are more expensive than AMRK, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, AMRK is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.56 | ||
| EV/EBITDA | 12.9 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- AMRK's earnings are expected to grow with 66.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)1
PEG (5Y)N/A
EPS Next 2Y78.9%
EPS Next 3Y66.62%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.74%, 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 0.97. AMRK pays more dividend than 82.61% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, AMRK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
5.2 History
- AMRK has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 258.96% of the earnings are spent on dividend by AMRK. This is not a sustainable payout ratio.
DP258.96%
EPS Next 2Y78.9%
EPS Next 3Y66.62%
A-MARK PRECIOUS METALS INC / AMRK FAQ
What is the ChartMill fundamental rating of A-MARK PRECIOUS METALS INC (AMRK) stock?
ChartMill assigns a fundamental rating of 5 / 10 to AMRK.
What is the valuation status for AMRK stock?
ChartMill assigns a valuation rating of 6 / 10 to A-MARK PRECIOUS METALS INC (AMRK). This can be considered as Fairly Valued.
How profitable is A-MARK PRECIOUS METALS INC (AMRK) stock?
A-MARK PRECIOUS METALS INC (AMRK) has a profitability rating of 3 / 10.
How financially healthy is A-MARK PRECIOUS METALS INC?
The financial health rating of A-MARK PRECIOUS METALS INC (AMRK) is 5 / 10.
Is the dividend of A-MARK PRECIOUS METALS INC sustainable?
The dividend rating of A-MARK PRECIOUS METALS INC (AMRK) is 4 / 10 and the dividend payout ratio is 258.96%.