PAN AMERICAN SILVER CORP (PAAS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PAAS - CA6979001089 - Common Stock
64.31 USD
-0.51 (-0.79%)
64.89 USD
+0.58 (+0.9%)
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 priced too expensively while it is growing strongly. Keep and eye on this one! This makes PAAS very considerable for growth investing!
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.
- PAAS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- PAAS has a better Return On Assets (6.93%) than 79.22% of its industry peers.
- PAAS's Return On Equity of 9.58% is fine compared to the rest of the industry. PAAS outperforms 72.73% of its industry peers.
- With a decent Return On Invested Capital value of 7.72%, PAAS is doing good in the industry, outperforming 68.83% of the companies in the same industry.
| 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
- With an excellent Profit Margin value of 19.48%, PAAS belongs to the best of the industry, outperforming 83.77% of the companies in the same industry.
- PAAS's Profit Margin has declined in the last couple of years.
- The Operating Margin of PAAS (25.17%) is better than 74.68% 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 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PAAS is destroying value.
- Compared to 1 year ago, PAAS has less shares outstanding
- Compared to 5 years ago, PAAS has more shares outstanding
- The debt/assets ratio for PAAS is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 7.15 indicates that PAAS is not in any danger for bankruptcy at the moment.
- PAAS's Altman-Z score of 7.15 is fine compared to the rest of the industry. PAAS outperforms 70.78% of its industry peers.
- The Debt to FCF ratio of PAAS is 1.15, which is an excellent value as it means it would take PAAS, only 1.15 years of fcf income to pay off 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.
- PAAS's Debt to Equity ratio of 0.12 is in line compared to the rest of the industry. PAAS outperforms 58.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 7.15 |
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.
- The Current ratio of PAAS (2.31) is comparable to the rest of the industry.
- 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.
- PAAS has a Quick ratio of 1.55. This is comparable to the rest of the industry: PAAS outperforms 51.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
- PAAS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 320.00%, which is quite impressive.
- PAAS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.51% yearly.
- 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
- The Earnings Per Share is expected to grow by 22.19% 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 10.31% on average per year.
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.
- 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
- Based on the Price/Earnings ratio of 38.28, the valuation of PAAS can be described as expensive.
- Based on the Price/Earnings ratio, PAAS is valued a bit cheaper than the industry average as 70.13% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, PAAS is valued a bit more expensive.
- PAAS is valuated rather expensively with a Price/Forward Earnings ratio of 19.44.
- PAAS's Price/Forward Earnings 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 an average S&P500 Price/Forward Earnings ratio of 25.98, PAAS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.28 | ||
| Fwd PE | 19.44 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PAAS is valued a bit cheaper than the industry average as 61.69% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, PAAS is valued a bit cheaper than the industry average as 79.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.37 | ||
| EV/EBITDA | 19.89 |
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)74.45
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.
- PAAS's Dividend Yield is a higher than the industry average which is at 1.02.
- With a Dividend Yield of 0.68, PAAS pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
- The dividend of PAAS is nicely growing with an annual growth rate of 19.86%!
- PAAS has paid a dividend for at least 10 years, which is a reliable track record.
- PAAS has decreased its dividend 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 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 38.28 and the Price/Book (PB) ratio is 4.1.
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%.