A-MARK PRECIOUS METALS INC (AMRK) Stock Fundamental Analysis
NASDAQ:AMRK - Nasdaq - US00181T1079 - Common Stock - Currency: USD
AMRK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 19 industry peers in the Distributors industry. AMRK has only an average score on both its financial health and profitability. AMRK has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years AMRK has been profitable.
In multiple years AMRK reported negative operating cash flow during the last 5 years.
1.2 Ratios
AMRK's Return On Assets of 1.74% is in line compared to the rest of the industry. AMRK outperforms 47.37% of its industry peers.
AMRK has a Return On Equity (5.89%) which is comparable to the rest of the industry.
AMRK's Return On Invested Capital of 2.37% is on the low side compared to the rest of the industry. AMRK is outperformed by 63.16% of its industry peers.
AMRK had an Average Return On Invested Capital over the past 3 years of 9.40%. This is significantly below the industry average of 18.52%.
The 3 year average ROIC (9.40%) for AMRK is well above the current ROIC(2.37%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 5.89% | ||
| ROIC | 2.37% |
ROA(3y)7.68%
ROA(5y)8.09%
ROE(3y)21.5%
ROE(5y)27.74%
ROIC(3y)9.4%
ROIC(5y)9.18%
1.3 Margins
AMRK has a Profit Margin (0.35%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of AMRK has grown nicely.
The Operating Margin of AMRK (0.44%) is worse than 63.16% of its industry peers.
In the last couple of years the Operating Margin of AMRK has grown nicely.
Looking at the Gross Margin, with a value of 1.57%, AMRK is doing worse than 84.21% of the companies in the same industry.
In the last couple of years the Gross Margin of AMRK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.44% | ||
| PM (TTM) | 0.35% | ||
| GM | 1.57% |
OM growth 3Y-27.47%
OM growth 5Y98.04%
PM growth 3Y-30.4%
PM growth 5Y72.71%
GM growth 3Y-13.51%
GM growth 5Y21.7%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AMRK is still creating some value.
AMRK has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AMRK has more shares outstanding
AMRK has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.96 indicates that AMRK is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.96, AMRK is doing good in the industry, outperforming 73.68% of the companies in the same industry.
AMRK has a debt to FCF ratio of 5.79. This is a neutral value as AMRK would need 5.79 years to pay back of all of its debts.
AMRK has a better Debt to FCF ratio (5.79) than 63.16% of its industry peers.
A Debt/Equity ratio of 1.43 is on the high side and indicates that AMRK has dependencies on debt financing.
With a Debt to Equity ratio value of 1.43, AMRK is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 5.96 |
ROIC/WACC0.27
WACC8.78%
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 in line with its industry peers.
A Quick Ratio of 0.39 indicates that AMRK may have some problems paying its short term obligations.
AMRK has a worse Quick ratio (0.39) than 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
AMRK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.11%.
AMRK shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 69.05% yearly.
The Revenue has been growing slightly by 6.78% in the past year.
The Revenue has been growing by 15.19% on average over the past years. This is quite good.
EPS 1Y (TTM)-64.11%
EPS 3Y-40.58%
EPS 5Y69.05%
EPS Q2Q%-128.57%
Revenue 1Y (TTM)6.78%
Revenue growth 3Y8.41%
Revenue growth 5Y15.19%
Sales Q2Q%15.26%
3.2 Future
AMRK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.79% yearly.
The Revenue is expected to grow by 7.38% on average over the next years.
EPS Next Y-66.15%
EPS Next 2Y-0.79%
EPS Next 3Y13.16%
EPS Next 5Y24.79%
Revenue Next Year14.97%
Revenue Next 2Y8.72%
Revenue Next 3Y7.7%
Revenue Next 5Y7.38%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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 18.68, which indicates a rather expensive current valuation of AMRK.
Based on the Price/Earnings ratio, AMRK is valued a bit cheaper than 68.42% of the companies in the same industry.
When comparing the Price/Earnings ratio of AMRK to the average of the S&P500 Index (27.93), we can say AMRK is valued slightly cheaper.
With a Price/Forward Earnings ratio of 10.37, the valuation of AMRK can be described as very reasonable.
Based on the Price/Forward Earnings ratio, AMRK is valued cheaper than 89.47% of the companies in the same industry.
AMRK is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.68 | ||
| Fwd PE | 10.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMRK is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
94.74% 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 | 3.39 | ||
| EV/EBITDA | 11.31 |
4.3 Compensation for Growth
AMRK's earnings are expected to grow with 13.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y-0.79%
EPS Next 3Y13.16%
5. Dividend
5.1 Amount
AMRK has a Yearly Dividend Yield of 3.66%. Purely for dividend investing, there may be better candidates out there.
AMRK's Dividend Yield is rather good when compared to the industry average which is at 2.66. AMRK pays more dividend than 94.74% of the companies in the same industry.
AMRK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
5.2 History
On average, the dividend of AMRK grows each year by 72.09%, which is quite nice.
AMRK has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)72.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
AMRK pays out 48.67% of its income as dividend. This is a bit on the high side, but may be sustainable.
AMRK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP48.67%
EPS Next 2Y-0.79%
EPS Next 3Y13.16%
21.85
-0.24 (-1.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners60.11%
Inst Owner Change-1.11%
Ins Owners16.34%
Ins Owner Change2.75%
Market Cap537.95M
Analysts80
Price Target40.8 (86.73%)
Short Float %8.63%
Short Ratio5.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
Yearly Dividend1.81
Dividend Growth(5Y)72.09%
DP48.67%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-81.89%
Min EPS beat(2)-110%
Max EPS beat(2)-53.77%
EPS beat(4)0
Avg EPS beat(4)-59.61%
Min EPS beat(4)-110%
Max EPS beat(4)-16.17%
EPS beat(8)1
Avg EPS beat(8)-43.72%
EPS beat(12)4
Avg EPS beat(12)-23.07%
EPS beat(16)8
Avg EPS beat(16)-2.8%
Revenue beat(2)2
Avg Revenue beat(2)6.64%
Min Revenue beat(2)5.36%
Max Revenue beat(2)7.92%
Revenue beat(4)3
Avg Revenue beat(4)1.45%
Min Revenue beat(4)-8.98%
Max Revenue beat(4)7.92%
Revenue beat(8)6
Avg Revenue beat(8)9.1%
Revenue beat(12)7
Avg Revenue beat(12)5.52%
Revenue beat(16)9
Avg Revenue beat(16)3.76%
PT rev (1m)0%
PT rev (3m)-5.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-31.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-58.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.68 | ||
| Fwd PE | 10.37 | ||
| P/S | 0.05 | ||
| P/FCF | 3.39 | ||
| P/OCF | 3.2 | ||
| P/B | 0.84 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 11.31 |
EPS(TTM)1.17
EY5.35%
EPS(NY)2.11
Fwd EY9.64%
FCF(TTM)6.44
FCFY29.48%
OCF(TTM)6.83
OCFY31.27%
SpS446.45
BVpS26.14
TBVpS12.82
PEG (NY)N/A
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 5.89% | ||
| ROCE | 4.63% | ||
| ROIC | 2.37% | ||
| ROICexc | 2.54% | ||
| ROICexgc | 3.23% | ||
| OM | 0.44% | ||
| PM (TTM) | 0.35% | ||
| GM | 1.57% | ||
| FCFM | 1.44% |
ROA(3y)7.68%
ROA(5y)8.09%
ROE(3y)21.5%
ROE(5y)27.74%
ROIC(3y)9.4%
ROIC(5y)9.18%
ROICexc(3y)9.72%
ROICexc(5y)9.77%
ROICexgc(3y)11.49%
ROICexgc(5y)11.69%
ROCE(3y)22.11%
ROCE(5y)23.12%
ROICexcg growth 3Y-34.4%
ROICexcg growth 5Y100.78%
ROICexc growth 3Y-33.9%
ROICexc growth 5Y92.53%
OM growth 3Y-27.47%
OM growth 5Y98.04%
PM growth 3Y-30.4%
PM growth 5Y72.71%
GM growth 3Y-13.51%
GM growth 5Y21.7%
F-Score5
Asset Turnover5.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 5.79 | ||
| Debt/EBITDA | 13.91 | ||
| Cap/Depr | 55.95% | ||
| Cap/Sales | 0.09% | ||
| Interest Coverage | 1.21 | ||
| Cash Conversion | 254.83% | ||
| Profit Quality | 418.11% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 5.96 |
F-Score5
WACC8.78%
ROIC/WACC0.27
Cap/Depr(3y)75.66%
Cap/Depr(5y)56.13%
Cap/Sales(3y)0.1%
Cap/Sales(5y)0.07%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-64.11%
EPS 3Y-40.58%
EPS 5Y69.05%
EPS Q2Q%-128.57%
EPS Next Y-66.15%
EPS Next 2Y-0.79%
EPS Next 3Y13.16%
EPS Next 5Y24.79%
Revenue 1Y (TTM)6.78%
Revenue growth 3Y8.41%
Revenue growth 5Y15.19%
Sales Q2Q%15.26%
Revenue Next Year14.97%
Revenue Next 2Y8.72%
Revenue Next 3Y7.7%
Revenue Next 5Y7.38%
EBIT growth 1Y-55.53%
EBIT growth 3Y-21.37%
EBIT growth 5Y128.12%
EBIT Next Year-27.57%
EBIT Next 3Y19.53%
EBIT Next 5Y16.87%
FCF growth 1Y648.17%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y466.43%
OCF growth 3YN/A
OCF growth 5YN/A