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 151 industry peers in the Metals & Mining industry. PAAS has an average financial health and profitability rating. PAAS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PAAS had positive earnings in the past year.
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
With a decent Return On Assets value of 1.55%, PAAS is doing good in the industry, outperforming 64.24% of the companies in the same industry.
PAAS has a better Return On Equity (2.37%) than 61.59% 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 60.26% 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 69.54% of its industry peers.
In the last couple of years the Profit Margin of PAAS has declined.
With a decent Operating Margin value of 13.18%, PAAS is doing good in the industry, outperforming 71.52% of the companies in the same industry.
PAAS's Operating Margin has improved in the last couple of years.
PAAS has a Gross Margin (19.10%) which is comparable to the rest of the industry.
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.
Compared to 1 year ago, PAAS has less shares outstanding
The number of shares outstanding for PAAS has been increased compared to 5 years ago.
Compared to 1 year ago, PAAS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.63 indicates that PAAS is not a great score, but indicates only limited risk for bankruptcy at the moment.
PAAS's Altman-Z score of 2.63 is in line compared to the rest of the industry. PAAS outperforms 56.29% of its industry peers.
PAAS has a debt to FCF ratio of 2.00. This is a good value and a sign of high solvency as PAAS would need 2.00 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.00, PAAS belongs to the top of the industry, outperforming 82.12% of the companies in the same industry.
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 | 2.63 |
ROIC/WACC0.48
WACC9.31%
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 of 2.50. This is comparable to the rest of the industry: PAAS outperforms 59.60% of its industry peers.
PAAS has a Quick Ratio of 1.62. This is a normal value and indicates that PAAS is financially healthy and should not expect problems in meeting its short term obligations.
PAAS has a Quick ratio (1.62) which is in line with 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.
Measured over the past 5 years, PAAS shows a small growth in Earnings Per Share. The EPS has been growing by 0.51% on average per year.
The Revenue has grown by 21.71% in the past year. This is a very strong growth!
Measured over the past years, PAAS shows a quite strong growth in Revenue. The Revenue has been growing by 15.85% on average per year.
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
PAAS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.13% yearly.
The Revenue is expected to grow by 5.31% on average over the next years.
EPS Next Y52.87%
EPS Next 2Y29.39%
EPS Next 3Y12.41%
EPS Next 5Y-9.13%
Revenue Next Year2.02%
Revenue Next 2Y6.64%
Revenue Next 3Y5.31%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
PAAS is valuated quite expensively with a Price/Earnings ratio of 31.08.
PAAS's Price/Earnings ratio is a bit cheaper when compared to the industry. PAAS is cheaper than 62.25% of the companies in the same industry.
When comparing the Price/Earnings ratio of PAAS to the average of the S&P500 Index (29.35), we can say PAAS is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 20.33, the valuation of PAAS can be described as rather expensive.
PAAS's Price/Forward Earnings is on the same level as the industry average.
PAAS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.08 | ||
| Fwd PE | 20.33 |
4.2 Price Multiples
67.55% of the companies in the same industry are more expensive than PAAS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PAAS is valued a bit cheaper than the industry average as 77.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.18 | ||
| EV/EBITDA | 9.31 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
PAAS's earnings are expected to grow with 12.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.59
PEG (5Y)60.44
EPS Next 2Y29.39%
EPS Next 3Y12.41%
5. Dividend
5.1 Amount
PAAS has a Yearly Dividend Yield of 1.53%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.23, PAAS pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.33, PAAS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
The dividend of PAAS is nicely growing with an annual growth rate of 19.89%!
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 2Y29.39%
EPS Next 3Y12.41%
24.55
+0.04 (+0.16%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners58.92%
Inst Owner Change-2.85%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap8.89B
Analysts82.22
Price Target21.21 (-13.6%)
Short Float %1.77%
Short Ratio2.14
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)29.48%
Min EPS beat(2)-4.02%
Max EPS beat(2)62.97%
EPS beat(4)2
Avg EPS beat(4)38.16%
Min EPS beat(4)-28.1%
Max EPS beat(4)121.79%
EPS beat(8)3
Avg EPS beat(8)14.76%
EPS beat(12)4
Avg EPS beat(12)-9.88%
EPS beat(16)4
Avg EPS beat(16)-18.08%
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)1.68%
PT rev (3m)10.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.58%
EPS NY rev (1m)-18.23%
EPS NY rev (3m)-18.46%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-9.61%
Revenue NY rev (3m)-8.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.08 | ||
| Fwd PE | 20.33 | ||
| P/S | 3.15 | ||
| P/FCF | 22.18 | ||
| P/OCF | 12.28 | ||
| P/B | 1.89 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 9.31 |
EPS(TTM)0.79
EY3.22%
EPS(NY)1.21
Fwd EY4.92%
FCF(TTM)1.11
FCFY4.51%
OCF(TTM)2
OCFY8.14%
SpS7.78
BVpS12.99
TBVpS12.99
PEG (NY)0.59
PEG (5Y)60.44
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 | 2.63 |
F-Score8
WACC9.31%
ROIC/WACC0.48
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 Y52.87%
EPS Next 2Y29.39%
EPS Next 3Y12.41%
EPS Next 5Y-9.13%
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 5YN/A
EBIT growth 1Y216.71%
EBIT growth 3Y9.55%
EBIT growth 5Y19.41%
EBIT Next Year138.45%
EBIT Next 3Y9.24%
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%