A-MARK PRECIOUS METALS INC (AMRK) Stock Fundamental Analysis
USA - NASDAQ:AMRK - US00181T1079 - Common Stock
27.47 USD
-2.23 (-7.51%)
27.44 USD
-0.03 (-0.11%)
Taking everything into account, AMRK scores 4 out of 10 in our fundamental rating. AMRK was compared to 22 industry peers in the Distributors industry. Both the profitability and financial health of AMRK have multiple concerns. AMRK is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
AMRK had positive earnings in the past year.
In the past year AMRK had a positive cash flow from operations.
In the past 5 years AMRK has always been profitable.
In multiple years AMRK reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.78%, AMRK is in line with its industry, outperforming 54.55% of the companies in the same industry.
AMRK has a Return On Equity (2.67%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 2.46%, AMRK is in line with its industry, outperforming 40.91% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AMRK is significantly below the industry average of 14.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 2.67% | ||
| ROIC | 2.46% |
ROA(3y)4.88%
ROA(5y)7.45%
ROE(3y)13.35%
ROE(5y)22.24%
ROIC(3y)6.45%
ROIC(5y)8.55%
1.3 Margins
With a Profit Margin value of 0.16%, AMRK perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Profit Margin of AMRK has declined.
AMRK's Operating Margin of 0.46% is in line compared to the rest of the industry. AMRK outperforms 40.91% of its industry peers.
In the last couple of years the Operating Margin of AMRK has declined.
The Gross Margin of AMRK (1.92%) is worse than 81.82% of its industry peers.
AMRK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.46% | ||
| PM (TTM) | 0.16% | ||
| GM | 1.92% |
OM growth 3Y-38.17%
OM growth 5Y-6.56%
PM growth 3Y-54.03%
PM growth 5Y-22.34%
GM growth 3Y-15.72%
GM growth 5Y9.38%
2. Health
2.1 Basic Checks
AMRK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AMRK has more shares outstanding
AMRK has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AMRK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.95 indicates that AMRK is not in any danger for bankruptcy at the moment.
AMRK has a better Altman-Z score (5.95) than 68.18% of its industry peers.
AMRK has a debt to FCF ratio of 6.23. This is a slightly negative value and a sign of low solvency as AMRK would need 6.23 years to pay back of all of its debts.
The Debt to FCF ratio of AMRK (6.23) is better than 68.18% of its industry peers.
A Debt/Equity ratio of 1.35 is on the high side and indicates that AMRK has dependencies on debt financing.
AMRK has a worse Debt to Equity ratio (1.35) than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 6.23 | ||
| Altman-Z | 5.95 |
ROIC/WACC0.27
WACC9.14%
2.3 Liquidity
A Current Ratio of 1.56 indicates that AMRK should not have too much problems paying its short term obligations.
AMRK has a Current ratio (1.56) which is comparable to the rest of the industry.
AMRK has a Quick Ratio of 1.56. This is a bad value and indicates that AMRK is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.42, AMRK is doing worse than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
AMRK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.74%.
AMRK shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.41% yearly.
AMRK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.19%.
The Revenue has been growing by 14.99% on average over the past years. This is quite good.
EPS 1Y (TTM)-53.74%
EPS 3Y-43.33%
EPS 5Y-14.41%
EPS Q2Q%-30.51%
Revenue 1Y (TTM)13.19%
Revenue growth 3Y10.4%
Revenue growth 5Y14.99%
Sales Q2Q%-0.51%
3.2 Future
Based on estimates for the next years, AMRK will show a very strong growth in Earnings Per Share. The EPS will grow by 46.99% on average per year.
The Revenue is expected to grow by 5.60% on average over the next years.
EPS Next Y118.55%
EPS Next 2Y80.59%
EPS Next 3Y71.67%
EPS Next 5Y46.99%
Revenue Next Year-4.13%
Revenue Next 2Y2.08%
Revenue Next 3Y4.88%
Revenue Next 5Y5.6%
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
With a Price/Earnings ratio of 27.75, AMRK can be considered very expensive at the moment.
AMRK's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.40. AMRK is around the same levels.
A Price/Forward Earnings ratio of 12.70 indicates a correct valuation of AMRK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMRK indicates a rather cheap valuation: AMRK is cheaper than 86.36% of the companies listed in the same industry.
AMRK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.75 | ||
| Fwd PE | 12.7 |
4.2 Price Multiples
AMRK's Enterprise Value to EBITDA is on the same level as the industry average.
90.91% of the companies in the same industry are more expensive than AMRK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.78 | ||
| EV/EBITDA | 13.65 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AMRK's earnings are expected to grow with 71.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y80.59%
EPS Next 3Y71.67%
5. Dividend
5.1 Amount
AMRK has a Yearly Dividend Yield of 2.93%.
AMRK's Dividend Yield is rather good when compared to the industry average which is at 3.22. AMRK pays more dividend than 81.82% of the companies in the same industry.
AMRK's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
5.2 History
AMRK has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
108.57% of the earnings are spent on dividend by AMRK. This is not a sustainable payout ratio.
DP108.57%
EPS Next 2Y80.59%
EPS Next 3Y71.67%
27.47
-2.23 (-7.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners63.59%
Inst Owner Change0%
Ins Owners16.4%
Ins Owner Change-0.19%
Market Cap676.86M
Analysts80
Price Target41.31 (50.38%)
Short Float %8.52%
Short Ratio5.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
Yearly Dividend0.79
Dividend Growth(5Y)N/A
DP108.57%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-59.25%
Min EPS beat(2)-110%
Max EPS beat(2)-8.49%
EPS beat(4)0
Avg EPS beat(4)-57.69%
Min EPS beat(4)-110%
Max EPS beat(4)-8.49%
EPS beat(8)0
Avg EPS beat(8)-46.86%
EPS beat(12)3
Avg EPS beat(12)-25.2%
EPS beat(16)7
Avg EPS beat(16)-9%
Revenue beat(2)1
Avg Revenue beat(2)-4.97%
Min Revenue beat(2)-15.31%
Max Revenue beat(2)5.36%
Revenue beat(4)3
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-15.31%
Max Revenue beat(4)7.92%
Revenue beat(8)5
Avg Revenue beat(8)2.92%
Revenue beat(12)7
Avg Revenue beat(12)4.65%
Revenue beat(16)8
Avg Revenue beat(16)2.3%
PT rev (1m)1.25%
PT rev (3m)1.25%
EPS NQ rev (1m)9.68%
EPS NQ rev (3m)3.05%
EPS NY rev (1m)2.72%
EPS NY rev (3m)2.72%
Revenue NQ rev (1m)-2.29%
Revenue NQ rev (3m)-4.69%
Revenue NY rev (1m)-2.14%
Revenue NY rev (3m)-6.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.75 | ||
| Fwd PE | 12.7 | ||
| P/S | 0.06 | ||
| P/FCF | 4.78 | ||
| P/OCF | 4.44 | ||
| P/B | 1.04 | ||
| P/tB | 2.39 | ||
| EV/EBITDA | 13.65 |
EPS(TTM)0.99
EY3.6%
EPS(NY)2.16
Fwd EY7.88%
FCF(TTM)5.75
FCFY20.93%
OCF(TTM)6.18
OCFY22.51%
SpS445.56
BVpS26.36
TBVpS11.51
PEG (NY)0.23
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 2.67% | ||
| ROCE | 4.62% | ||
| ROIC | 2.46% | ||
| ROICexc | 2.58% | ||
| ROICexgc | 3.38% | ||
| OM | 0.46% | ||
| PM (TTM) | 0.16% | ||
| GM | 1.92% | ||
| FCFM | 1.29% |
ROA(3y)4.88%
ROA(5y)7.45%
ROE(3y)13.35%
ROE(5y)22.24%
ROIC(3y)6.45%
ROIC(5y)8.55%
ROICexc(3y)6.68%
ROICexc(5y)9.06%
ROICexgc(3y)8.03%
ROICexgc(5y)11.08%
ROCE(3y)14.86%
ROCE(5y)20.52%
ROICexcg growth 3Y-36.5%
ROICexcg growth 5Y-9.18%
ROICexc growth 3Y-38.7%
ROICexc growth 5Y-13.46%
OM growth 3Y-38.17%
OM growth 5Y-6.56%
PM growth 3Y-54.03%
PM growth 5Y-22.34%
GM growth 3Y-15.72%
GM growth 5Y9.38%
F-Score5
Asset Turnover4.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 6.23 | ||
| Debt/EBITDA | 11.92 | ||
| Cap/Depr | 46.59% | ||
| Cap/Sales | 0.1% | ||
| Interest Coverage | 1.19 | ||
| Cash Conversion | 206.56% | ||
| Profit Quality | 817.95% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 5.95 |
F-Score5
WACC9.14%
ROIC/WACC0.27
Cap/Depr(3y)87.67%
Cap/Depr(5y)58.62%
Cap/Sales(3y)0.12%
Cap/Sales(5y)0.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-53.74%
EPS 3Y-43.33%
EPS 5Y-14.41%
EPS Q2Q%-30.51%
EPS Next Y118.55%
EPS Next 2Y80.59%
EPS Next 3Y71.67%
EPS Next 5Y46.99%
Revenue 1Y (TTM)13.19%
Revenue growth 3Y10.4%
Revenue growth 5Y14.99%
Sales Q2Q%-0.51%
Revenue Next Year-4.13%
Revenue Next 2Y2.08%
Revenue Next 3Y4.88%
Revenue Next 5Y5.6%
EBIT growth 1Y-31.39%
EBIT growth 3Y-31.74%
EBIT growth 5Y7.44%
EBIT Next Year171.12%
EBIT Next 3Y64.85%
EBIT Next 5Y42.53%
FCF growth 1Y213.68%
FCF growth 3YN/A
FCF growth 5Y24.72%
OCF growth 1Y150.02%
OCF growth 3YN/A
OCF growth 5Y26.02%