PAN AMERICAN SILVER CORP (NYSE:PAAS) was identified as a decent value stock through our fundamental screening process. The company operates in the metals and mining sector, focusing on silver and gold production. With a solid valuation score and reasonable financial health, PAAS may appeal to value investors looking for opportunities in commodities.
Key Highlights from the Fundamental Report
Valuation (Score: 7/10)
The stock trades at a Price/Earnings (P/E) ratio of 18.95, which is below both the industry average (29.42) and the S&P 500 average (26.68).
Its Forward P/E of 11.33 suggests a more attractive valuation based on expected earnings.
The Price/Free Cash Flow ratio indicates PAAS is cheaper than 85% of its industry peers.
A low PEG Ratio (accounting for growth) further supports the case for undervaluation.
Financial Health (Score: 6/10)
A strong Current Ratio of 2.93 and Quick Ratio of 1.94 suggest good short-term liquidity.
Debt/Equity ratio of 0.16 reflects a conservative capital structure.
The company’s Debt-to-FCF ratio of 1.51 is among the best in the industry, indicating strong solvency.
Profitability (Score: 6/10)
Profit Margin of 10.40% outperforms 81% of industry peers.
Operating Margin (18.53%) and Gross Margin (24.13%) are above average for the sector.
While profitability metrics are solid, recent declines in margins warrant monitoring.
Growth (Score: 4/10)
Revenue grew by 18.34% in the past year, with a 5-year average growth of 15.85%.
EPS surged by 5,900% last year, though this was partly due to a low base effect.
Future growth projections are weaker, with expected declines in both EPS and revenue.
Why This Matters for Value Investors
PAAS presents a mix of reasonable valuation, stable financial health, and decent profitability. While growth expectations are subdued, the stock’s current pricing may already reflect these concerns, making it a candidate for value-oriented portfolios.
This is not investment advice. The observations here are based on available data at the time of writing. Always conduct your own research before making investment decisions.