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 6 out of 10 to PAAS. PAAS was compared to 154 industry peers in the Metals & Mining industry. While PAAS has a great health rating, its profitability is only average at the moment. PAAS scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make PAAS a good candidate for value 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.
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 Return On Assets of 4.32%. This is in the better half of the industry: PAAS outperforms 73.38% of its industry peers.
Looking at the Return On Equity, with a value of 6.46%, PAAS is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
PAAS's Return On Invested Capital of 6.63% is fine compared to the rest of the industry. PAAS outperforms 70.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 6.46% | ||
| ROIC | 6.63% |
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
The Profit Margin of PAAS (10.40%) is better than 80.52% of its industry peers.
PAAS's Profit Margin has declined in the last couple of years.
PAAS's Operating Margin of 18.53% is fine compared to the rest of the industry. PAAS outperforms 73.38% of its industry peers.
In the last couple of years the Operating Margin of PAAS has grown nicely.
With a decent Gross Margin value of 24.13%, PAAS is doing good in the industry, outperforming 64.29% of the companies in the same industry.
In the last couple of years the Gross Margin of PAAS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.53% | ||
| PM (TTM) | 10.4% | ||
| GM | 24.13% |
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.
PAAS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PAAS has more shares outstanding
PAAS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.41 indicates that PAAS is not in any danger for bankruptcy at the moment.
PAAS's Altman-Z score of 3.41 is fine compared to the rest of the industry. PAAS outperforms 62.34% of its industry peers.
The Debt to FCF ratio of PAAS is 1.51, which is an excellent value as it means it would take PAAS, only 1.51 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.51, PAAS belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
PAAS has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of PAAS (0.16) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 3.41 |
ROIC/WACC0.77
WACC8.64%
2.3 Liquidity
PAAS has a Current Ratio of 2.93. This indicates that PAAS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.93, PAAS is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
PAAS has a Quick Ratio of 1.94. 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 1.94. This is in the better half of the industry: PAAS outperforms 60.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
PAAS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 5900.00%, which is quite impressive.
The Earnings Per Share has been growing slightly by 0.51% on average over the past years.
PAAS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.34%.
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)5900%
EPS 3Y0.86%
EPS 5Y0.51%
EPS Q2Q%4100%
Revenue 1Y (TTM)18.34%
Revenue growth 3Y19.96%
Revenue growth 5Y15.85%
Sales Q2Q%28.57%
3.2 Future
The Earnings Per Share is expected to grow by 2.59% on average over the next years.
PAAS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.24% yearly.
EPS Next Y58.55%
EPS Next 2Y59.4%
EPS Next 3Y23.95%
EPS Next 5Y2.59%
Revenue Next Year5.21%
Revenue Next 2Y4.64%
Revenue Next 3Y2.86%
Revenue Next 5Y-3.24%
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 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
The Price/Earnings ratio is 24.79, which indicates a rather expensive current valuation of PAAS.
PAAS's Price/Earnings ratio is a bit cheaper when compared to the industry. PAAS is cheaper than 70.13% of the companies in the same industry.
When comparing the Price/Earnings ratio of PAAS to the average of the S&P500 Index (27.52), we can say PAAS is valued inline with the index average.
A Price/Forward Earnings ratio of 14.82 indicates a correct valuation of PAAS.
62.99% of the companies in the same industry are more expensive than PAAS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 35.58. PAAS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.79 | ||
| Fwd PE | 14.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PAAS is valued a bit cheaper than the industry average as 72.08% of the companies are valued more expensively.
83.12% of the companies in the same industry are more expensive than PAAS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.2 | ||
| EV/EBITDA | 9.67 |
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.
PAAS's earnings are expected to grow with 23.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)48.22
EPS Next 2Y59.4%
EPS Next 3Y23.95%
5. Dividend
5.1 Amount
PAAS has a Yearly Dividend Yield of 1.44%. Purely for dividend investing, there may be better candidates out there.
PAAS's Dividend Yield is a higher than the industry average which is at 2.90.
PAAS's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
The dividend of PAAS is nicely growing with an annual growth rate of 19.89%!
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)19.89%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PAAS pays out 46.64% of its income as dividend. This is a bit on the high side, but may be sustainable.
PAAS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP46.64%
EPS Next 2Y59.4%
EPS Next 3Y23.95%
29.75
-0.58 (-1.91%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners60.88%
Inst Owner Change0%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap10.78B
Analysts80
Price Target26.71 (-10.22%)
Short Float %4.44%
Short Ratio2.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Yearly Dividend0.4
Dividend Growth(5Y)19.89%
DP46.64%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)62.84%
Min EPS beat(2)-3.07%
Max EPS beat(2)128.76%
EPS beat(4)2
Avg EPS beat(4)40.14%
Min EPS beat(4)-28.1%
Max EPS beat(4)128.76%
EPS beat(8)3
Avg EPS beat(8)2.62%
EPS beat(12)5
Avg EPS beat(12)4.03%
EPS beat(16)5
Avg EPS beat(16)-6.04%
Revenue beat(2)1
Avg Revenue beat(2)5.07%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)11.97%
Revenue beat(4)1
Avg Revenue beat(4)-3.5%
Min Revenue beat(4)-18.79%
Max Revenue beat(4)11.97%
Revenue beat(8)1
Avg Revenue beat(8)-4.04%
Revenue beat(12)2
Avg Revenue beat(12)-4.81%
Revenue beat(16)2
Avg Revenue beat(16)-5.4%
PT rev (1m)1.45%
PT rev (3m)25.22%
EPS NQ rev (1m)3.77%
EPS NQ rev (3m)53.49%
EPS NY rev (1m)0%
EPS NY rev (3m)14.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.79 | ||
| Fwd PE | 14.82 | ||
| P/S | 3.6 | ||
| P/FCF | 20.2 | ||
| P/OCF | 12.86 | ||
| P/B | 2.24 | ||
| P/tB | 2.24 | ||
| EV/EBITDA | 9.67 |
EPS(TTM)1.2
EY4.03%
EPS(NY)2.01
Fwd EY6.75%
FCF(TTM)1.47
FCFY4.95%
OCF(TTM)2.31
OCFY7.78%
SpS8.26
BVpS13.3
TBVpS13.3
PEG (NY)0.42
PEG (5Y)48.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 6.46% | ||
| ROCE | 8.39% | ||
| ROIC | 6.63% | ||
| ROICexc | 7.71% | ||
| ROICexgc | 7.71% | ||
| OM | 18.53% | ||
| PM (TTM) | 10.4% | ||
| GM | 24.13% | ||
| FCFM | 17.83% |
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-Score9
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.51 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 53.73% | ||
| Cap/Sales | 10.18% | ||
| Interest Coverage | 14.82 | ||
| Cash Conversion | 74.74% | ||
| Profit Quality | 171.42% | ||
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.94 | ||
| Altman-Z | 3.41 |
F-Score9
WACC8.64%
ROIC/WACC0.77
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)5900%
EPS 3Y0.86%
EPS 5Y0.51%
EPS Q2Q%4100%
EPS Next Y58.55%
EPS Next 2Y59.4%
EPS Next 3Y23.95%
EPS Next 5Y2.59%
Revenue 1Y (TTM)18.34%
Revenue growth 3Y19.96%
Revenue growth 5Y15.85%
Sales Q2Q%28.57%
Revenue Next Year5.21%
Revenue Next 2Y4.64%
Revenue Next 3Y2.86%
Revenue Next 5Y-3.24%
EBIT growth 1Y428.82%
EBIT growth 3Y9.55%
EBIT growth 5Y19.41%
EBIT Next Year125.64%
EBIT Next 3Y43.41%
EBIT Next 5Y-7.85%
FCF growth 1Y324.75%
FCF growth 3Y39.19%
FCF growth 5Y39.97%
OCF growth 1Y5697.52%
OCF growth 3Y22.69%
OCF growth 5Y20.76%