FORTUNA MINING CORP (FSM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FSM - CA3499421020 - Common Stock
11.65 USD
+0.25 (+2.19%)
11.74 USD
+0.09 (+0.77%)
Taking everything into account, FSM scores 7 out of 10 in our fundamental rating. FSM was compared to 154 industry peers in the Metals & Mining industry. FSM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. An interesting combination arises when we look at growth and value: FSM is growing strongly while it also seems undervalued. This makes FSM very considerable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year FSM was profitable.
- FSM had a positive operating cash flow in the past year.
- In multiple years FSM reported negative net income over the last 5 years.
- FSM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of FSM (10.30%) is better than 88.96% of its industry peers.
- With an excellent Return On Equity value of 14.25%, FSM belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
- FSM's Return On Invested Capital of 11.79% is amongst the best of the industry. FSM outperforms 83.77% of its industry peers.
- FSM had an Average Return On Invested Capital over the past 3 years of 5.85%. This is below the industry average of 10.34%.
- The last Return On Invested Capital (11.79%) for FSM is above the 3 year average (5.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 14.25% | ||
| ROIC | 11.79% |
ROA(3y)-1.11%
ROA(5y)0.32%
ROE(3y)-1.74%
ROE(5y)0.39%
ROIC(3y)5.85%
ROIC(5y)5.63%
1.3 Margins
- The Profit Margin of FSM (21.48%) is better than 85.06% of its industry peers.
- FSM's Profit Margin has improved in the last couple of years.
- FSM's Operating Margin of 33.56% is amongst the best of the industry. FSM outperforms 83.12% of its industry peers.
- In the last couple of years the Operating Margin of FSM has grown nicely.
- FSM has a Gross Margin of 42.91%. This is in the better half of the industry: FSM outperforms 77.27% of its industry peers.
- FSM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.56% | ||
| PM (TTM) | 21.48% | ||
| GM | 42.91% |
OM growth 3Y-1.7%
OM growth 5Y2.93%
PM growth 3Y7.9%
PM growth 5Y5.55%
GM growth 3Y-2.98%
GM growth 5Y-0.63%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FSM is still creating some value.
- FSM has about the same amout of shares outstanding than it did 1 year ago.
- FSM has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, FSM has an improved debt to assets ratio.
2.2 Solvency
- FSM has an Altman-Z score of 4.98. This indicates that FSM is financially healthy and has little risk of bankruptcy at the moment.
- FSM has a Altman-Z score of 4.98. This is in the better half of the industry: FSM outperforms 60.39% of its industry peers.
- FSM has a debt to FCF ratio of 0.82. This is a very positive value and a sign of high solvency as it would only need 0.82 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.82, FSM belongs to the top of the industry, outperforming 88.96% of the companies in the same industry.
- FSM has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
- FSM's Debt to Equity ratio of 0.12 is in line compared to the rest of the industry. FSM outperforms 59.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.82 | ||
| Altman-Z | 4.98 |
ROIC/WACC1.24
WACC9.53%
2.3 Liquidity
- A Current Ratio of 3.30 indicates that FSM has no problem at all paying its short term obligations.
- The Current ratio of FSM (3.30) is better than 68.18% of its industry peers.
- A Quick Ratio of 2.73 indicates that FSM has no problem at all paying its short term obligations.
- FSM has a better Quick ratio (2.73) than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.3 | ||
| Quick Ratio | 2.73 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 41.36% over the past year.
- Measured over the past years, FSM shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.67% on average per year.
- The Revenue has been growing slightly by 4.78% in the past year.
- The Revenue has been growing by 32.79% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)41.36%
EPS 3Y3.57%
EPS 5Y22.67%
EPS Q2Q%-10.59%
Revenue 1Y (TTM)4.78%
Revenue growth 3Y20.98%
Revenue growth 5Y32.79%
Sales Q2Q%-8.56%
3.2 Future
- The Earnings Per Share is expected to grow by 27.53% on average over the next years. This is a very strong growth
- Based on estimates for the next years, FSM will show a small growth in Revenue. The Revenue will grow by 2.06% on average per year.
EPS Next Y54.53%
EPS Next 2Y56.5%
EPS Next 3Y33.39%
EPS Next 5Y27.53%
Revenue Next Year-0.65%
Revenue Next 2Y5.14%
Revenue Next 3Y2.22%
Revenue Next 5Y2.06%
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.
- 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
- FSM is valuated rather expensively with a Price/Earnings ratio of 18.79.
- Based on the Price/Earnings ratio, FSM is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
- FSM is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 9.51 indicates a reasonable valuation of FSM.
- FSM's Price/Forward Earnings ratio is rather cheap when compared to the industry. FSM is cheaper than 89.61% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, FSM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.79 | ||
| Fwd PE | 9.51 |
4.2 Price Multiples
- FSM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FSM is cheaper than 94.81% of the companies in the same industry.
- 95.45% of the companies in the same industry are more expensive than FSM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.76 | ||
| EV/EBITDA | 5.87 |
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.
- FSM has an outstanding profitability rating, which may justify a higher PE ratio.
- FSM's earnings are expected to grow with 33.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)0.83
EPS Next 2Y56.5%
EPS Next 3Y33.39%
5. Dividend
5.1 Amount
- FSM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FORTUNA MINING CORP / FSM FAQ
Can you provide the ChartMill fundamental rating for FORTUNA MINING CORP?
ChartMill assigns a fundamental rating of 7 / 10 to FSM.
What is the valuation status of FORTUNA MINING CORP (FSM) stock?
ChartMill assigns a valuation rating of 9 / 10 to FORTUNA MINING CORP (FSM). This can be considered as Undervalued.
Can you provide the profitability details for FORTUNA MINING CORP?
FORTUNA MINING CORP (FSM) has a profitability rating of 8 / 10.
What is the expected EPS growth for FORTUNA MINING CORP (FSM) stock?
The Earnings per Share (EPS) of FORTUNA MINING CORP (FSM) is expected to grow by 54.53% in the next year.