FIRST MAJESTIC SILVER CORP (AG) Stock Fundamental Analysis
NYSE:AG - New York Stock Exchange, Inc. - CA32076V1031 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to AG. AG was compared to 153 industry peers in the Metals & Mining industry. The financial health of AG is average, but there are quite some concerns on its profitability. AG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year AG has reported negative net income.
In the past year AG had a positive cash flow from operations.
AG had negative earnings in 4 of the past 5 years.
Each year in the past 5 years AG had a positive operating cash flow.
1.2 Ratios
AG has a Return On Assets (-2.03%) which is in line with its industry peers.
With a Return On Equity value of -3.39%, AG perfoms like the industry average, outperforming 46.41% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.60%, AG is in line with its industry, outperforming 50.33% of the companies in the same 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
With a decent Operating Margin value of 11.16%, AG is doing good in the industry, outperforming 67.32% of the companies in the same industry.
In the last couple of years the Operating Margin of AG has declined.
The Gross Margin of AG (22.59%) is better than 62.09% of its industry peers.
AG's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AG is destroying value.
AG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AG has more shares outstanding
Compared to 1 year ago, AG has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that AG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AG (1.27) is worse than 68.63% of its industry peers.
The Debt to FCF ratio of AG is 4.34, which is a neutral value as it means it would take AG, 4.34 years of fcf income to pay off all of its debts.
AG has a Debt to FCF ratio of 4.34. This is in the better half of the industry: AG outperforms 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 has a better Debt to Equity ratio (0.09) than 62.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.19
WACC8.56%
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 better Current ratio (3.19) than 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.
AG has a better Quick ratio (2.74) than 71.90% of its industry peers.
| 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
AG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.76% yearly.
The Revenue is expected to grow by 25.00% on average over the next years. This is a very strong growth
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 20.66 indicates a rather expensive valuation of AG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AG is on the same level as its industry peers.
AG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.66 |
4.2 Price Multiples
AG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AG is cheaper than 61.44% of the companies in the same industry.
AG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AG is cheaper than 62.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.25 | ||
| EV/EBITDA | 11.44 |
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.
A more expensive valuation may be justified as AG's earnings are expected to grow with 63.08% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y107.31%
EPS Next 3Y63.08%
5. Dividend
5.1 Amount
AG has a yearly dividend return of 0.40%, which is pretty low.
AG's Dividend Yield is a higher than the industry average which is at 2.97.
Compared to an average S&P500 Dividend Yield of 2.40, AG's dividend is way lower than the S&P500 average.
| 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
AG has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-8.13%
EPS Next 2Y107.31%
EPS Next 3Y63.08%
6.17
+0.28 (+4.75%)
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 Cap2.99B
Analysts76.92
Price Target7.74 (25.45%)
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 | 20.66 | ||
| P/S | 4.28 | ||
| P/FCF | 55.25 | ||
| P/OCF | 15.32 | ||
| P/B | 1.23 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 11.44 |
EPS(TTM)-0.02
EYN/A
EPS(NY)0.3
Fwd EY4.84%
FCF(TTM)0.11
FCFY1.81%
OCF(TTM)0.4
OCFY6.53%
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 | 1.27 |
F-Score6
WACC8.56%
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%