PAN AMERICAN SILVER CORP (PAAS) Stock Fundamental Analysis
NYSE:PAAS - New York Stock Exchange, Inc. - CA6979001089 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to PAAS. PAAS was compared to 152 industry peers in the Metals & Mining industry. PAAS has only an average score on both its financial health and profitability. PAAS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year PAAS was profitable.
In the past year PAAS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PAAS reported negative net income in multiple years.
In the past 5 years PAAS always reported a positive cash flow from operatings.
1.2 Ratios
PAAS's Return On Assets of 1.55% is fine compared to the rest of the industry. PAAS outperforms 63.82% of its industry peers.
PAAS has a better Return On Equity (2.37%) than 61.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.50%, PAAS is in the better half of the industry, outperforming 61.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 2.37% | ||
| ROIC | 4.5% |
ROA(3y)-3.47%
ROA(5y)-0.49%
ROE(3y)-5.12%
ROE(5y)-0.97%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PAAS has a Profit Margin of 3.96%. This is in the better half of the industry: PAAS outperforms 70.39% of its industry peers.
PAAS's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 13.18%, PAAS is doing good in the industry, outperforming 69.08% of the companies in the same industry.
In the last couple of years the Operating Margin of PAAS has grown nicely.
PAAS has a Gross Margin (19.10%) which is in line with its industry peers.
PAAS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.18% | ||
| PM (TTM) | 3.96% | ||
| GM | 19.1% |
OM growth 3Y-8.68%
OM growth 5Y3.07%
PM growth 3Y-12.81%
PM growth 5Y-13.56%
GM growth 3Y-4.78%
GM growth 5Y2.77%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PAAS is destroying value.
PAAS has less shares outstanding than it did 1 year ago.
PAAS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PAAS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.84 indicates that PAAS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of PAAS (2.84) is comparable to the rest of the industry.
The Debt to FCF ratio of PAAS is 2.00, which is a good value as it means it would take PAAS, 2.00 years of fcf income to pay off all of its debts.
PAAS has a Debt to FCF ratio of 2.00. This is amongst the best in the industry. PAAS outperforms 80.92% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that PAAS is not too dependend on debt financing.
PAAS has a Debt to Equity ratio (0.16) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 2.84 |
ROIC/WACC0.51
WACC8.83%
2.3 Liquidity
PAAS has a Current Ratio of 2.50. This indicates that PAAS is financially healthy and has no problem in meeting its short term obligations.
PAAS has a Current ratio (2.50) which is in line with its industry peers.
A Quick Ratio of 1.62 indicates that PAAS should not have too much problems paying its short term obligations.
PAAS's Quick ratio of 1.62 is in line compared to the rest of the industry. PAAS outperforms 55.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 618.18% over the past year.
The Earnings Per Share has been growing slightly by 0.51% on average over the past years.
Looking at the last year, PAAS shows a very strong growth in Revenue. The Revenue has grown by 21.71%.
The Revenue has been growing by 15.85% on average over the past years. This is quite good.
EPS 1Y (TTM)618.18%
EPS 3Y0.86%
EPS 5Y0.51%
EPS Q2Q%975%
Revenue 1Y (TTM)21.71%
Revenue growth 3Y19.96%
Revenue growth 5Y15.85%
Sales Q2Q%21.73%
3.2 Future
Based on estimates for the next years, PAAS will show a very negative growth in Earnings Per Share. The EPS will decrease by -19.00% on average per year.
Based on estimates for the next years, PAAS will show a decrease in Revenue. The Revenue will decrease by -3.24% on average per year.
EPS Next Y58.55%
EPS Next 2Y59.4%
EPS Next 3Y23.95%
EPS Next 5Y-19%
Revenue Next Year2.02%
Revenue Next 2Y6.64%
Revenue Next 3Y5.31%
Revenue Next 5Y-3.24%
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 decreasing.
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
With a Price/Earnings ratio of 34.14, PAAS can be considered very expensive at the moment.
64.47% of the companies in the same industry are more expensive than PAAS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.63, PAAS is valued a bit more expensive.
A Price/Forward Earnings ratio of 21.53 indicates a rather expensive valuation of PAAS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PAAS is on the same level as its industry peers.
PAAS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.14 | ||
| Fwd PE | 21.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PAAS is valued a bit cheaper than the industry average as 63.82% of the companies are valued more expensively.
PAAS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PAAS is cheaper than 74.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.37 | ||
| EV/EBITDA | 10.24 |
4.3 Compensation for Growth
PAAS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of PAAS may justify a higher PE ratio.
A more expensive valuation may be justified as PAAS's earnings are expected to grow with 23.95% in the coming years.
PEG (NY)0.58
PEG (5Y)66.4
EPS Next 2Y59.4%
EPS Next 3Y23.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.53%, PAAS has a reasonable but not impressive dividend return.
PAAS's Dividend Yield is a higher than the industry average which is at 2.99.
PAAS's Dividend Yield is slightly below the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
On average, the dividend of PAAS grows each year by 19.89%, which is quite nice.
PAAS has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of PAAS decreased recently.
Dividend Growth(5Y)19.89%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PAAS pays out 130.40% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of PAAS has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP130.4%
EPS Next 2Y59.4%
EPS Next 3Y23.95%
26.97
-0.23 (-0.85%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners58.92%
Inst Owner Change0.14%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap9.77B
Analysts82.22
Price Target21.33 (-20.91%)
Short Float %1.58%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Yearly Dividend0.4
Dividend Growth(5Y)19.89%
DP130.4%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)29.95%
Min EPS beat(2)-3.07%
Max EPS beat(2)62.97%
EPS beat(4)2
Avg EPS beat(4)38.4%
Min EPS beat(4)-28.1%
Max EPS beat(4)121.79%
EPS beat(8)3
Avg EPS beat(8)14.88%
EPS beat(12)4
Avg EPS beat(12)-9.8%
EPS beat(16)4
Avg EPS beat(16)-18.03%
Revenue beat(2)0
Avg Revenue beat(2)-10.31%
Min Revenue beat(2)-18.79%
Max Revenue beat(2)-1.83%
Revenue beat(4)0
Avg Revenue beat(4)-6.8%
Min Revenue beat(4)-18.79%
Max Revenue beat(4)-1.24%
Revenue beat(8)1
Avg Revenue beat(8)-4.33%
Revenue beat(12)1
Avg Revenue beat(12)-5.82%
Revenue beat(16)1
Avg Revenue beat(16)-7.54%
PT rev (1m)0.57%
PT rev (3m)11.33%
EPS NQ rev (1m)-7.81%
EPS NQ rev (3m)-38.54%
EPS NY rev (1m)3.72%
EPS NY rev (3m)-15.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-9.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.14 | ||
| Fwd PE | 21.53 | ||
| P/S | 3.46 | ||
| P/FCF | 24.37 | ||
| P/OCF | 13.49 | ||
| P/B | 2.08 | ||
| P/tB | 2.08 | ||
| EV/EBITDA | 10.24 |
EPS(TTM)0.79
EY2.93%
EPS(NY)1.25
Fwd EY4.64%
FCF(TTM)1.11
FCFY4.1%
OCF(TTM)2
OCFY7.41%
SpS7.78
BVpS12.99
TBVpS12.99
PEG (NY)0.58
PEG (5Y)66.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 2.37% | ||
| ROCE | 5.7% | ||
| ROIC | 4.5% | ||
| ROICexc | 5.21% | ||
| ROICexgc | 5.21% | ||
| OM | 13.18% | ||
| PM (TTM) | 3.96% | ||
| GM | 19.1% | ||
| FCFM | 14.22% |
ROA(3y)-3.47%
ROA(5y)-0.49%
ROE(3y)-5.12%
ROE(5y)-0.97%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-13.28%
ROICexcg growth 5Y4.91%
ROICexc growth 3Y-13.24%
ROICexc growth 5Y4.95%
OM growth 3Y-8.68%
OM growth 5Y3.07%
PM growth 3Y-12.81%
PM growth 5Y-13.56%
GM growth 3Y-4.78%
GM growth 5Y2.77%
F-Score8
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2 | ||
| Debt/EBITDA | 0.8 | ||
| Cap/Depr | 56.55% | ||
| Cap/Sales | 11.47% | ||
| Interest Coverage | 9.96 | ||
| Cash Conversion | 76.77% | ||
| Profit Quality | 359.46% | ||
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 2.84 |
F-Score8
WACC8.83%
ROIC/WACC0.51
Cap/Depr(3y)73.91%
Cap/Depr(5y)73.53%
Cap/Sales(3y)15.4%
Cap/Sales(5y)14.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)618.18%
EPS 3Y0.86%
EPS 5Y0.51%
EPS Q2Q%975%
EPS Next Y58.55%
EPS Next 2Y59.4%
EPS Next 3Y23.95%
EPS Next 5Y-19%
Revenue 1Y (TTM)21.71%
Revenue growth 3Y19.96%
Revenue growth 5Y15.85%
Sales Q2Q%21.73%
Revenue Next Year2.02%
Revenue Next 2Y6.64%
Revenue Next 3Y5.31%
Revenue Next 5Y-3.24%
EBIT growth 1Y216.71%
EBIT growth 3Y9.55%
EBIT growth 5Y19.41%
EBIT Next Year111.84%
EBIT Next 3Y32.55%
EBIT Next 5Y-7.85%
FCF growth 1Y462.92%
FCF growth 3Y39.19%
FCF growth 5Y39.97%
OCF growth 1Y60.84%
OCF growth 3Y22.69%
OCF growth 5Y20.76%