PAN AMERICAN SILVER CORP (PAAS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PAAS - CA6979001089 - Common Stock
61.72 USD
+4.51 (+7.88%)
62.74 USD
+1.02 (+1.65%)
Overall PAAS gets a fundamental rating of 6 out of 10. We evaluated PAAS against 156 industry peers in the Metals & Mining industry. PAAS has only an average score on both its financial health and profitability. PAAS is growing strongly while it is still valued neutral. This is a good combination! These ratings could make PAAS a good candidate for growth investing.
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
- With a decent Return On Assets value of 6.93%, PAAS is doing good in the industry, outperforming 79.49% of the companies in the same industry.
- PAAS has a better Return On Equity (9.58%) than 73.08% of its industry peers.
- PAAS has a better Return On Invested Capital (7.72%) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.93% | ||
| ROE | 9.58% | ||
| ROIC | 7.72% |
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 better Profit Margin (19.48%) than 83.97% of its industry peers.
- In the last couple of years the Profit Margin of PAAS has declined.
- The Operating Margin of PAAS (25.17%) is better than 74.36% of its industry peers.
- In the last couple of years the Operating Margin of PAAS has grown nicely.
- PAAS has a better Gross Margin (31.40%) than 67.31% of its industry peers.
- PAAS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.17% | ||
| PM (TTM) | 19.48% | ||
| GM | 31.4% |
OM growth 3Y-8.68%
OM growth 5Y3.06%
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
- 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 less shares outstanding
- The number of shares outstanding for PAAS has been increased compared to 5 years ago.
- The debt/assets ratio for PAAS is higher compared to a year ago.
2.2 Solvency
- PAAS has an Altman-Z score of 6.84. This indicates that PAAS is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 6.84, PAAS is doing good in the industry, outperforming 69.23% of the companies in the same industry.
- PAAS has a debt to FCF ratio of 1.15. This is a very positive value and a sign of high solvency as it would only need 1.15 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.15, PAAS belongs to the top of the industry, outperforming 83.97% of the companies in the same industry.
- PAAS has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
- PAAS has a Debt to Equity ratio (0.12) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 6.84 |
ROIC/WACC0.81
WACC9.56%
2.3 Liquidity
- A Current Ratio of 2.31 indicates that PAAS has no problem at all paying its short term obligations.
- PAAS has a Current ratio (2.31) which is in line with its industry peers.
- A Quick Ratio of 1.55 indicates that PAAS should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.55, PAAS is in line with its industry, outperforming 51.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 320.00% 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 21.75%.
- PAAS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.85% yearly.
EPS 1Y (TTM)320%
EPS 3Y0.86%
EPS 5Y0.51%
EPS Q2Q%50%
Revenue 1Y (TTM)21.75%
Revenue growth 3Y19.96%
Revenue growth 5Y15.85%
Sales Q2Q%42.1%
3.2 Future
- PAAS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.19% yearly.
- The Revenue is expected to grow by 10.31% on average over the next years. This is quite good.
EPS Next Y180.18%
EPS Next 2Y109.06%
EPS Next 3Y65.96%
EPS Next 5Y22.19%
Revenue Next Year24.67%
Revenue Next 2Y22.83%
Revenue Next 3Y15.71%
Revenue Next 5Y10.31%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 36.74, the valuation of PAAS can be described as expensive.
- PAAS's Price/Earnings ratio is a bit cheaper when compared to the industry. PAAS is cheaper than 71.15% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.32. PAAS is valued slightly more expensive when compared to this.
- PAAS is valuated rather expensively with a Price/Forward Earnings ratio of 17.88.
- Based on the Price/Forward Earnings ratio, PAAS is valued a bit cheaper than 65.38% of the companies in the same industry.
- PAAS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.74 | ||
| Fwd PE | 17.88 |
4.2 Price Multiples
- PAAS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PAAS is cheaper than 64.74% of the companies in the same industry.
- PAAS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PAAS is cheaper than 79.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.91 | ||
| EV/EBITDA | 18.94 |
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.
- PAAS's earnings are expected to grow with 65.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)71.45
EPS Next 2Y109.06%
EPS Next 3Y65.96%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.74%, PAAS is not a good candidate for dividend investing.
- PAAS's Dividend Yield is a higher than the industry average which is at 0.96.
- Compared to an average S&P500 Dividend Yield of 1.83, PAAS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
- On average, the dividend of PAAS grows each year by 19.86%, which is quite nice.
- 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)19.86%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 23.99% of the earnings are spent on dividend by PAAS. This is a low number and sustainable payout ratio.
- The dividend of PAAS is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP23.99%
EPS Next 2Y109.06%
EPS Next 3Y65.96%
PAN AMERICAN SILVER CORP / PAAS FAQ
What is the ChartMill fundamental rating of PAN AMERICAN SILVER CORP (PAAS) stock?
ChartMill assigns a fundamental rating of 6 / 10 to PAAS.
What is the valuation status for PAAS stock?
ChartMill assigns a valuation rating of 6 / 10 to PAN AMERICAN SILVER CORP (PAAS). This can be considered as Fairly Valued.
How profitable is PAN AMERICAN SILVER CORP (PAAS) stock?
PAN AMERICAN SILVER CORP (PAAS) has a profitability rating of 6 / 10.
What is the valuation of PAN AMERICAN SILVER CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PAN AMERICAN SILVER CORP (PAAS) is 36.74 and the Price/Book (PB) ratio is 3.94.
Can you provide the dividend sustainability for PAAS stock?
The dividend rating of PAN AMERICAN SILVER CORP (PAAS) is 5 / 10 and the dividend payout ratio is 23.99%.