FIRST MAJESTIC SILVER CORP (AG) Stock Fundamental Analysis
NYSE:AG - New York Stock Exchange, Inc. - CA32076V1031 - Common Stock - Currency: USD
Taking everything into account, AG scores 4 out of 10 in our fundamental rating. AG was compared to 153 industry peers in the Metals & Mining industry. AG scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. AG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
AG had negative earnings in the past year.
In the past year AG had a positive cash flow from operations.
In the past 5 years AG reported 4 times negative net income.
AG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AG has a Return On Assets (-2.03%) which is in line with its industry peers.
AG's Return On Equity of -3.39% is in line compared to the rest of the industry. AG outperforms 46.41% of its industry peers.
AG has a Return On Invested Capital (1.60%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.03% | ||
| ROE | -3.39% | ||
| ROIC | 1.6% |
ROA(3y)-5.8%
ROA(5y)-3.15%
ROE(3y)-8.53%
ROE(5y)-4.64%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
AG's Operating Margin of 11.16% is fine compared to the rest of the industry. AG outperforms 67.32% of its industry peers.
In the last couple of years the Operating Margin of AG has declined.
AG has a better Gross Margin (22.59%) than 62.09% of its industry peers.
In the last couple of years the Gross Margin of AG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.16% | ||
| PM (TTM) | N/A | ||
| GM | 22.59% |
OM growth 3Y-29.38%
OM growth 5Y-16.12%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.28%
GM growth 5Y-14.71%
2. Health
2.1 Basic Checks
AG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AG has more shares outstanding than it did 1 year ago.
AG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AG has an improved debt to assets ratio.
2.2 Solvency
AG has an Altman-Z score of 1.30. This is a bad value and indicates that AG is not financially healthy and even has some risk of bankruptcy.
AG's Altman-Z score of 1.30 is on the low side compared to the rest of the industry. AG is outperformed by 67.32% of its industry peers.
AG has a debt to FCF ratio of 4.34. This is a neutral value as AG would need 4.34 years to pay back of all of its debts.
AG has a better Debt to FCF ratio (4.34) than 69.93% of its industry peers.
AG has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
AG's Debt to Equity ratio of 0.09 is fine compared to the rest of the industry. AG outperforms 62.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.19
WACC8.57%
2.3 Liquidity
A Current Ratio of 3.19 indicates that AG has no problem at all paying its short term obligations.
AG has a Current ratio of 3.19. This is in the better half of the industry: AG outperforms 69.28% of its industry peers.
A Quick Ratio of 2.74 indicates that AG has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.74, AG is in the better half of the industry, outperforming 71.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.19 | ||
| Quick Ratio | 2.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 86.67% over the past year.
AG shows a strong growth in Revenue. In the last year, the Revenue has grown by 33.60%.
The Revenue has been growing by 9.02% on average over the past years. This is quite good.
EPS 1Y (TTM)86.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%183.33%
Revenue 1Y (TTM)33.6%
Revenue growth 3Y-1.36%
Revenue growth 5Y9.02%
Sales Q2Q%130.1%
3.2 Future
The Earnings Per Share is expected to grow by 17.76% on average over the next years. This is quite good.
Based on estimates for the next years, AG will show a very strong growth in Revenue. The Revenue will grow by 25.00% on average per year.
EPS Next Y312.34%
EPS Next 2Y107.31%
EPS Next 3Y63.08%
EPS Next 5Y17.76%
Revenue Next Year67.86%
Revenue Next 2Y35.49%
Revenue Next 3Y25%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for AG. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 21.19 indicates a rather expensive valuation of AG.
AG's Price/Forward Earnings ratio is in line with the industry average.
AG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 21.19 |
4.2 Price Multiples
60.78% of the companies in the same industry are more expensive than AG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AG is valued a bit cheaper than the industry average as 62.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.69 | ||
| EV/EBITDA | 11.76 |
4.3 Compensation for Growth
AG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AG's earnings are expected to grow with 63.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y107.31%
EPS Next 3Y63.08%
5. Dividend
5.1 Amount
With a yearly dividend of 0.40%, AG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.97, AG pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.40, AG pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
5.2 History
AG has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of AG are negative and hence is the payout ratio. AG will probably not be able to sustain this dividend level.
DP-8.13%
EPS Next 2Y107.31%
EPS Next 3Y63.08%
6.33
+0.16 (+2.59%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners39.36%
Inst Owner Change47.28%
Ins Owners1.01%
Ins Owner Change0%
Market Cap3.07B
Analysts76.92
Price Target7.74 (22.27%)
Short Float %4.79%
Short Ratio1.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
Yearly Dividend0.02
Dividend Growth(5Y)N/A
DP-8.13%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-20.4%
Min EPS beat(2)-21.7%
Max EPS beat(2)-19.09%
EPS beat(4)0
Avg EPS beat(4)-121.63%
Min EPS beat(4)-239.81%
Max EPS beat(4)-19.09%
EPS beat(8)2
Avg EPS beat(8)-127.51%
EPS beat(12)3
Avg EPS beat(12)-116.76%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)1.74%
Min Revenue beat(2)-1.73%
Max Revenue beat(2)5.21%
Revenue beat(4)2
Avg Revenue beat(4)2.71%
Min Revenue beat(4)-1.73%
Max Revenue beat(4)7.48%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)11.64%
PT rev (3m)8.39%
EPS NQ rev (1m)6.67%
EPS NQ rev (3m)-3.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-23.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)8.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 21.19 | ||
| P/S | 4.39 | ||
| P/FCF | 56.69 | ||
| P/OCF | 15.72 | ||
| P/B | 1.27 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 11.76 |
EPS(TTM)-0.02
EYN/A
EPS(NY)0.3
Fwd EY4.72%
FCF(TTM)0.11
FCFY1.76%
OCF(TTM)0.4
OCFY6.36%
SpS1.44
BVpS5
TBVpS5
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.03% | ||
| ROE | -3.39% | ||
| ROCE | 2.02% | ||
| ROIC | 1.6% | ||
| ROICexc | 1.79% | ||
| ROICexgc | 1.79% | ||
| OM | 11.16% | ||
| PM (TTM) | N/A | ||
| GM | 22.59% | ||
| FCFM | 7.74% |
ROA(3y)-5.8%
ROA(5y)-3.15%
ROE(3y)-8.53%
ROE(5y)-4.64%
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-32.27%
ROICexcg growth 5Y-22.93%
ROICexc growth 3Y-32.27%
ROICexc growth 5Y-22.93%
OM growth 3Y-29.38%
OM growth 5Y-16.12%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.28%
GM growth 5Y-14.71%
F-Score6
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 4.34 | ||
| Debt/EBITDA | 0.92 | ||
| Cap/Depr | 86.98% | ||
| Cap/Sales | 20.18% | ||
| Interest Coverage | 9.44 | ||
| Cash Conversion | 81.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.19 | ||
| Quick Ratio | 2.74 | ||
| Altman-Z | 1.3 |
F-Score6
WACC8.57%
ROIC/WACC0.19
Cap/Depr(3y)121.95%
Cap/Depr(5y)145.81%
Cap/Sales(3y)26.95%
Cap/Sales(5y)28.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)86.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%183.33%
EPS Next Y312.34%
EPS Next 2Y107.31%
EPS Next 3Y63.08%
EPS Next 5Y17.76%
Revenue 1Y (TTM)33.6%
Revenue growth 3Y-1.36%
Revenue growth 5Y9.02%
Sales Q2Q%130.1%
Revenue Next Year67.86%
Revenue Next 2Y35.49%
Revenue Next 3Y25%
Revenue Next 5YN/A
EBIT growth 1Y310.13%
EBIT growth 3Y-30.34%
EBIT growth 5Y-8.55%
EBIT Next Year123.2%
EBIT Next 3Y43.87%
EBIT Next 5Y26.69%
FCF growth 1Y126.94%
FCF growth 3YN/A
FCF growth 5Y11.46%
OCF growth 1Y594.47%
OCF growth 3Y30.28%
OCF growth 5Y1.65%