PAN AMERICAN SILVER CORP (PAAS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PAAS - CA6979001089 - Common Stock
64.82 USD
+0.32 (+0.5%)
63.9595 USD
-0.86 (-1.33%)
PAAS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 154 industry peers in the Metals & Mining industry. Both the profitability and the financial health of PAAS get a neutral evaluation. Nothing too spectacular is happening here. PAAS is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make PAAS suitable for growth investing!
1. Profitability
1.1 Basic Checks
- PAAS had positive earnings in the past year.
- PAAS had a positive operating cash flow in the past year.
- 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
- With a decent Return On Assets value of 6.93%, PAAS is doing good in the industry, outperforming 79.22% of the companies in the same industry.
- PAAS has a better Return On Equity (9.58%) than 72.73% of its industry peers.
- PAAS's Return On Invested Capital of 7.72% is fine compared to the rest of the industry. PAAS outperforms 68.83% 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 83.77% of its industry peers.
- In the last couple of years the Profit Margin of PAAS has declined.
- PAAS has a Operating Margin of 25.17%. This is in the better half of the industry: PAAS outperforms 74.68% of its industry peers.
- PAAS's Operating Margin has improved in the last couple of years.
- PAAS's Gross Margin of 31.40% is fine compared to the rest of the industry. PAAS outperforms 66.88% of its industry peers.
- In the last couple of years the Gross Margin of PAAS has grown nicely.
| 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
- 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.
- The debt/assets ratio for PAAS is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 7.11 indicates that PAAS is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 7.11, PAAS is in the better half of the industry, outperforming 70.78% 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.
- PAAS has a better Debt to FCF ratio (1.15) than 84.42% of its industry peers.
- PAAS has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of PAAS (0.12) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 7.11 |
ROIC/WACC0.79
WACC9.73%
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.
- PAAS has a Quick Ratio of 1.55. This is a normal value and indicates that PAAS is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of PAAS (1.55) is comparable to the rest of the 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.
- 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.
- Looking at the last year, PAAS shows a very strong growth in Revenue. The Revenue has grown by 21.75%.
- The Revenue has been growing by 15.85% on average over the past years. This is quite good.
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
- The Earnings Per Share is expected to grow by 22.19% on average over the next years. This is a very strong growth
- PAAS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.31% yearly.
EPS Next Y173.17%
EPS Next 2Y104.62%
EPS Next 3Y62.67%
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
- The Price/Earnings ratio is 38.58, which means the current valuation is very expensive for PAAS.
- Compared to the rest of the industry, the Price/Earnings ratio of PAAS indicates a somewhat cheap valuation: PAAS is cheaper than 70.78% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. PAAS is valued slightly more expensive when compared to this.
- A Price/Forward Earnings ratio of 19.60 indicates a rather expensive valuation of PAAS.
- Based on the Price/Forward Earnings ratio, PAAS is valued a bit cheaper than the industry average as 62.99% of the companies are valued more expensively.
- PAAS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.58 | ||
| Fwd PE | 19.6 |
4.2 Price Multiples
- PAAS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PAAS is cheaper than 62.99% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PAAS indicates a somewhat cheap valuation: PAAS is cheaper than 79.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.66 | ||
| EV/EBITDA | 19.8 |
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.
- PAAS has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as PAAS's earnings are expected to grow with 62.67% in the coming years.
PEG (NY)0.22
PEG (5Y)75.04
EPS Next 2Y104.62%
EPS Next 3Y62.67%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.68%, PAAS is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.02, PAAS pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, PAAS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
- On average, the dividend of PAAS grows each year by 19.86%, 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)19.86%
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.
- PAAS's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP23.99%
EPS Next 2Y104.62%
EPS Next 3Y62.67%
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 38.58 and the Price/Book (PB) ratio is 4.13.
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%.