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 150 industry peers in the Metals & Mining industry. While PAAS seems to be doing ok healthwise, there are quite some concerns on its profitability. PAAS is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year PAAS was profitable.
PAAS had a positive operating cash flow in the past year.
In multiple years PAAS reported negative net income over the last 5 years.
PAAS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PAAS has a Return On Assets (-0.67%) which is in line with its industry peers.
With a Return On Equity value of -1.03%, PAAS perfoms like the industry average, outperforming 53.15% of the companies in the same industry.
PAAS has a Return On Invested Capital (3.57%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.67% | ||
| ROE | -1.03% | ||
| ROIC | 3.57% |
ROA(3y)-3.06%
ROA(5y)-0.16%
ROE(3y)-4.68%
ROE(5y)-0.54%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Operating Margin value of 10.84%, PAAS is doing good in the industry, outperforming 66.43% of the companies in the same industry.
PAAS's Operating Margin has declined in the last couple of years.
The Gross Margin of PAAS (16.48%) is comparable to the rest of the industry.
PAAS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.84% | ||
| PM (TTM) | N/A | ||
| GM | 16.48% |
OM growth 3Y-36.73%
OM growth 5Y-8.92%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-21.9%
GM growth 5Y-0.07%
2. Health
2.1 Basic Checks
PAAS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PAAS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PAAS has more shares outstanding
Compared to 1 year ago, PAAS has a worse debt to assets ratio.
2.2 Solvency
PAAS has an Altman-Z score of 2.45. This is not the best score and indicates that PAAS is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.45, PAAS is in line with its industry, outperforming 48.25% of the companies in the same industry.
The Debt to FCF ratio of PAAS is 3.13, which is a good value as it means it would take PAAS, 3.13 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PAAS (3.13) is better than 75.52% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that PAAS is not too dependend on debt financing.
The Debt to Equity ratio of PAAS (0.16) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.36
WACC9.81%
2.3 Liquidity
A Current Ratio of 2.06 indicates that PAAS has no problem at all paying its short term obligations.
PAAS has a Current ratio of 2.06. This is comparable to the rest of the industry: PAAS outperforms 48.95% of its industry peers.
PAAS has a Quick Ratio of 2.06. This is a bad value and indicates that PAAS is not financially healthy enough and could expect problems in meeting its short term obligations.
PAAS has a worse Quick ratio (0.96) than 72.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
PAAS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 207.69%, which is quite impressive.
Measured over the past years, PAAS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -22.36% on average per year.
PAAS shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.22%.
The Revenue has been growing by 24.17% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)207.69%
EPS 3Y-54.27%
EPS 5Y-22.36%
EPS Q2Q%3100%
Revenue 1Y (TTM)32.22%
Revenue growth 3Y20.05%
Revenue growth 5Y24.17%
Sales Q2Q%-2.42%
3.2 Future
The Earnings Per Share is expected to grow by 50.76% on average over the next years. This is a very strong growth
Based on estimates for the next years, PAAS will show a quite strong growth in Revenue. The Revenue will grow by 10.52% on average per year.
EPS Next Y648%
EPS Next 2Y266.43%
EPS Next 3Y138.33%
EPS Next 5Y50.76%
Revenue Next Year22.35%
Revenue Next 2Y17.36%
Revenue Next 3Y10.52%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 60.50 indicates a quite expensive valuation of PAAS.
The rest of the industry has a similar Price/Earnings ratio as PAAS.
Compared to an average S&P500 Price/Earnings ratio of 28.47, PAAS is valued quite expensively.
A Price/Forward Earnings ratio of 16.39 indicates a correct valuation of PAAS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PAAS indicates a somewhat cheap valuation: PAAS is cheaper than 60.84% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PAAS to the average of the S&P500 Index (92.74), we can say PAAS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.5 | ||
| Fwd PE | 16.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PAAS is on the same level as its industry peers.
PAAS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PAAS is cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.7 | ||
| EV/EBITDA | 11.3 |
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.
PAAS's earnings are expected to grow with 138.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y266.43%
EPS Next 3Y138.33%
5. Dividend
5.1 Amount
PAAS has a Yearly Dividend Yield of 1.54%. Purely for dividend investing, there may be better candidates out there.
PAAS's Dividend Yield is a higher than the industry average which is at 3.15.
Compared to the average S&P500 Dividend Yield of 2.28, PAAS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
On average, the dividend of PAAS grows each year by 26.69%, which is quite nice.
PAAS has been paying a dividend for at least 10 years, so it has a reliable track record.
PAAS has decreased its dividend recently.
Dividend Growth(5Y)26.69%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PAAS has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of PAAS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-305.67%
EPS Next 2Y266.43%
EPS Next 3Y138.33%
PAN AMERICAN SILVER CORP
NYSE:PAAS (2/4/2025, 8:04:01 PM)
After market: 24.05 -0.15 (-0.62%)24.2
+0.34 (+1.42%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners62.06%
Inst Owner Change-4.11%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap8.78B
Analysts82.22
Price Target20.86 (-13.8%)
Short Float %2.21%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend0.45
Dividend Growth(5Y)26.69%
DP-305.67%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.43%
Min EPS beat(2)-28.1%
Max EPS beat(2)62.97%
EPS beat(4)2
Avg EPS beat(4)5.25%
Min EPS beat(4)-135.65%
Max EPS beat(4)121.79%
EPS beat(8)3
Avg EPS beat(8)-5.41%
EPS beat(12)4
Avg EPS beat(12)-11.54%
EPS beat(16)5
Avg EPS beat(16)-16.05%
Revenue beat(2)0
Avg Revenue beat(2)-12.08%
Min Revenue beat(2)-18.79%
Max Revenue beat(2)-5.37%
Revenue beat(4)0
Avg Revenue beat(4)-6.93%
Min Revenue beat(4)-18.79%
Max Revenue beat(4)-1.24%
Revenue beat(8)1
Avg Revenue beat(8)-4.86%
Revenue beat(12)1
Avg Revenue beat(12)-6.29%
Revenue beat(16)1
Avg Revenue beat(16)-7.72%
PT rev (1m)8.88%
PT rev (3m)17.36%
EPS NQ rev (1m)1.37%
EPS NQ rev (3m)362.5%
EPS NY rev (1m)0.62%
EPS NY rev (3m)25.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)12.12%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.5 | ||
| Fwd PE | 16.39 | ||
| P/S | 3.29 | ||
| P/FCF | 33.7 | ||
| P/OCF | 14.23 | ||
| P/B | 1.9 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 11.3 |
EPS(TTM)0.4
EY1.65%
EPS(NY)1.48
Fwd EY6.1%
FCF(TTM)0.72
FCFY2.97%
OCF(TTM)1.7
OCFY7.03%
SpS7.36
BVpS12.76
TBVpS12.76
PEG (NY)0.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.67% | ||
| ROE | -1.03% | ||
| ROCE | 4.51% | ||
| ROIC | 3.57% | ||
| ROICexc | 3.85% | ||
| ROICexgc | 3.85% | ||
| OM | 10.84% | ||
| PM (TTM) | N/A | ||
| GM | 16.48% | ||
| FCFM | 9.75% |
ROA(3y)-3.06%
ROA(5y)-0.16%
ROE(3y)-4.68%
ROE(5y)-0.54%
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-41.64%
ROICexcg growth 5Y-13.91%
ROICexc growth 3Y-41.61%
ROICexc growth 5Y-13.88%
OM growth 3Y-36.73%
OM growth 5Y-8.92%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-21.9%
GM growth 5Y-0.07%
F-Score6
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 3.13 | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 70.73% | ||
| Cap/Sales | 13.34% | ||
| Interest Coverage | 7.41 | ||
| Cash Conversion | 77.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 2.45 |
F-Score6
WACC9.81%
ROIC/WACC0.36
Cap/Depr(3y)81.85%
Cap/Depr(5y)78.59%
Cap/Sales(3y)16.55%
Cap/Sales(5y)15.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)207.69%
EPS 3Y-54.27%
EPS 5Y-22.36%
EPS Q2Q%3100%
EPS Next Y648%
EPS Next 2Y266.43%
EPS Next 3Y138.33%
EPS Next 5Y50.76%
Revenue 1Y (TTM)32.22%
Revenue growth 3Y20.05%
Revenue growth 5Y24.17%
Sales Q2Q%-2.42%
Revenue Next Year22.35%
Revenue Next 2Y17.36%
Revenue Next 3Y10.52%
Revenue Next 5YN/A
EBIT growth 1Y229.17%
EBIT growth 3Y-24.05%
EBIT growth 5Y13.09%
EBIT Next Year601.46%
EBIT Next 3Y81.69%
EBIT Next 5Y33.9%
FCF growth 1Y2615.44%
FCF growth 3Y-36.92%
FCF growth 5Y85.98%
OCF growth 1Y135.55%
OCF growth 3Y-0.88%
OCF growth 5Y23.77%