A-MARK PRECIOUS METALS INC (AMRK) Stock Fundamental Analysis
NASDAQ:AMRK - Nasdaq - US00181T1079 - Common Stock - Currency: USD
Taking everything into account, AMRK scores 5 out of 10 in our fundamental rating. AMRK was compared to 18 industry peers in the Distributors industry. AMRK has an average financial health and profitability rating. 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.
AMRK had a positive operating cash flow in the past year.
AMRK had positive earnings in each of the past 5 years.
In multiple years AMRK reported negative operating cash flow during the last 5 years.
1.2 Ratios
AMRK has a Return On Assets (1.74%) which is in line with its industry peers.
With a Return On Equity value of 5.89%, AMRK perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.37%, AMRK is doing worse than 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AMRK is significantly below the industry average of 23.10%.
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
Looking at the Profit Margin, with a value of 0.35%, AMRK is doing worse than 61.11% of the companies in the same industry.
In the last couple of years the Profit Margin of AMRK has grown nicely.
AMRK's Operating Margin of 0.44% is on the low side compared to the rest of the industry. AMRK is outperformed by 66.67% of its industry peers.
AMRK's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 1.57%, AMRK is doing worse than 88.89% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AMRK is creating some value.
The number of shares outstanding for AMRK has been reduced compared to 1 year ago.
The number of shares outstanding for AMRK has been increased compared to 5 years ago.
The debt/assets ratio for AMRK has been reduced compared to a year ago.
2.2 Solvency
AMRK has an Altman-Z score of 5.94. This indicates that AMRK is financially healthy and has little risk of bankruptcy at the moment.
AMRK's Altman-Z score of 5.94 is fine compared to the rest of the industry. AMRK outperforms 72.22% of its industry peers.
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 Debt to FCF ratio of 5.79. This is in the better half of the industry: AMRK outperforms 61.11% of its industry peers.
AMRK has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
AMRK has a Debt to Equity ratio of 1.43. This is amonst the worse of the industry: AMRK underperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 5.94 |
ROIC/WACC0.29
WACC8.07%
2.3 Liquidity
AMRK has a Current Ratio of 1.56. This is a normal value and indicates that AMRK is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.56, AMRK is in line with its industry, outperforming 44.44% of the companies in the same 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.
The Quick ratio of AMRK (0.39) is worse than 88.89% 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%.
Measured over the past years, AMRK shows a very strong growth in Earnings Per Share. The EPS has been growing by 69.05% on average per year.
Looking at the last year, AMRK shows a small growth in Revenue. The Revenue has grown by 6.78% in the last 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 6.44% on average over the next years.
EPS Next Y-52.8%
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 5Y6.44%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
A Price/Earnings ratio of 16.94 indicates a correct valuation of AMRK.
Based on the Price/Earnings ratio, AMRK is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AMRK to the average of the S&P500 Index (25.91), we can say AMRK is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 9.41, the valuation of AMRK can be described as reasonable.
Based on the Price/Forward Earnings ratio, AMRK is valued cheaper than 88.89% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AMRK to the average of the S&P500 Index (21.85), we can say AMRK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.94 | ||
| Fwd PE | 9.41 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than AMRK, based on the Enterprise Value to EBITDA ratio.
94.44% 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 | 3.09 | ||
| EV/EBITDA | 10.49 |
4.3 Compensation for Growth
A more expensive valuation may be justified as AMRK's earnings are expected to grow with 13.16% in the coming years.
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-0.79%
EPS Next 3Y13.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.78%, AMRK has a reasonable but not impressive dividend return.
The stock price of AMRK dropped by -25.96% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.55, AMRK pays a better dividend. On top of this AMRK pays more dividend than 100.00% of the companies listed in the same industry.
AMRK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
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.
AMRK has decreased its dividend in the last 3 years.
Dividend Growth(5Y)72.09%
Div Incr Years2
Div Non Decr Years2
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.
The dividend of AMRK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP48.67%
EPS Next 2Y-0.79%
EPS Next 3Y13.16%
19.82
-0.5 (-2.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners61.06%
Inst Owner Change5.7%
Ins Owners15.73%
Ins Owner Change2.88%
Market Cap489.36M
Analysts78.18
Price Target42.43 (114.08%)
Short Float %7.87%
Short Ratio4.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Yearly Dividend1.81
Dividend Growth(5Y)72.09%
DP48.67%
Div Incr Years2
Div Non Decr Years2
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)-1.42%
PT rev (3m)-6.73%
EPS NQ rev (1m)-21.29%
EPS NQ rev (3m)-32.92%
EPS NY rev (1m)-42.68%
EPS NY rev (3m)-51.79%
Revenue NQ rev (1m)5.4%
Revenue NQ rev (3m)2.56%
Revenue NY rev (1m)4.54%
Revenue NY rev (3m)8.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.94 | ||
| Fwd PE | 9.41 | ||
| P/S | 0.04 | ||
| P/FCF | 3.09 | ||
| P/OCF | 2.91 | ||
| P/B | 0.76 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 10.49 |
EPS(TTM)1.17
EY5.9%
EPS(NY)2.11
Fwd EY10.63%
FCF(TTM)6.42
FCFY32.41%
OCF(TTM)6.81
OCFY34.38%
SpS445.18
BVpS26.07
TBVpS12.78
PEG (NY)N/A
PEG (5Y)0.25
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 | 5.94 |
F-Score5
WACC8.07%
ROIC/WACC0.29
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-52.8%
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 5Y6.44%
EBIT growth 1Y-55.53%
EBIT growth 3Y-21.37%
EBIT growth 5Y128.12%
EBIT Next Year1.42%
EBIT Next 3Y17.51%
EBIT Next 5Y15.3%
FCF growth 1Y648.17%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y466.43%
OCF growth 3YN/A
OCF growth 5YN/A