PAN AMERICAN SILVER CORP (PAAS)
CA6979001089 - Common Stock
Taking everything into account, PAAS scores 4 out of 10 in our fundamental rating. PAAS was compared to 157 industry peers in the Metals & Mining industry. PAAS may be in some trouble as it scores bad on both profitability and health. PAAS is not overvalued while it is showing excellent growth. This is an interesting combination.
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.
In multiple years PAAS reported negative net income over the last 5 years.
In the past 5 years PAAS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.79%, PAAS is in line with its industry, outperforming 47.77% of the companies in the same industry.
PAAS has a Return On Equity (-2.73%) which is comparable to the rest of the industry.
PAAS has a Return On Invested Capital (2.04%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.79% | ||
| ROE | -2.73% | ||
| ROIC | 2.04% |
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
The Operating Margin of PAAS (6.43%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PAAS has declined.
PAAS has a Gross Margin of 12.86%. This is comparable to the rest of the industry: PAAS outperforms 44.59% of its industry peers.
PAAS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.43% | ||
| PM (TTM) | N/A | ||
| GM | 12.86% |
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.
Compared to 1 year ago, PAAS has more shares outstanding
PAAS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PAAS has a worse debt to assets ratio.
2.2 Solvency
PAAS has an Altman-Z score of 2.31. 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.
PAAS has a Altman-Z score of 2.31. This is comparable to the rest of the industry: PAAS outperforms 44.59% of its industry peers.
PAAS has a debt to FCF ratio of 7.01. This is a slightly negative value and a sign of low solvency as PAAS would need 7.01 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.01, PAAS is doing good in the industry, outperforming 66.24% 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 | 7.01 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.21
WACC9.96%
2.3 Liquidity
A Current Ratio of 2.06 indicates that PAAS has no problem at all paying its short term obligations.
PAAS's Current ratio of 2.06 is in line compared to the rest of the industry. PAAS outperforms 42.68% 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's Quick ratio of 0.92 is on the low side compared to the rest of the industry. PAAS is outperformed by 75.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 207.69% over the past year.
PAAS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.36% yearly.
Looking at the last year, PAAS shows a very strong growth in Revenue. The Revenue has grown by 54.95%.
PAAS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.17% yearly.
EPS 1Y (TTM)207.69%
EPS 3Y-54.27%
EPS 5Y-22.36%
EPS Q2Q%3100%
Revenue 1Y (TTM)54.95%
Revenue growth 3Y20.05%
Revenue growth 5Y24.17%
Sales Q2Q%16.19%
3.2 Future
PAAS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 58.54% yearly.
PAAS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.35% yearly.
EPS Next Y497.16%
EPS Next 2Y239.09%
EPS Next 3Y95.3%
EPS Next 5Y58.54%
Revenue Next Year19.68%
Revenue Next 2Y13.67%
Revenue Next 3Y4.35%
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.
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 56.40, which means the current valuation is very expensive for PAAS.
The rest of the industry has a similar Price/Earnings ratio as PAAS.
When comparing the Price/Earnings ratio of PAAS to the average of the S&P500 Index (28.65), we can say PAAS is valued expensively.
A Price/Forward Earnings ratio of 17.84 indicates a rather expensive valuation of PAAS.
PAAS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.56. PAAS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.4 | ||
| Fwd PE | 17.84 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PAAS indicates a somewhat cheap valuation: PAAS is cheaper than 61.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.97 | ||
| EV/EBITDA | 12.58 |
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.
A more expensive valuation may be justified as PAAS's earnings are expected to grow with 95.30% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y239.09%
EPS Next 3Y95.3%
5. Dividend
5.1 Amount
PAAS has a Yearly Dividend Yield of 1.75%.
Compared to an average industry Dividend Yield of 2.98, PAAS pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.23, PAAS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
The dividend of PAAS is nicely growing with an annual growth rate of 26.69%!
PAAS has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of PAAS decreased recently.
Dividend Growth(5Y)26.69%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
The earnings of PAAS are negative and hence is the payout ratio. PAAS will probably not be able to sustain this dividend level.
PAAS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-115.54%
EPS Next 2Y239.09%
EPS Next 3Y95.3%
PAN AMERICAN SILVER CORP
NYSE:PAAS (11/21/2024, 12:14:09 PM)
22.56
+0.14 (+0.62%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
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Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.4 | ||
| Fwd PE | 17.84 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.79% | ||
| ROE | -2.73% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.43% | ||
| PM (TTM) | N/A | ||
| GM | 12.86% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.06 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)207.69%
EPS 3Y-54.27%
EPS 5Y
EPS Q2Q%
EPS Next Y497.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)54.95%
Revenue growth 3Y20.05%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y