29.25 USD
+0.54 (+1.88%)
29.26 USD
+0.01 (+0.03%)
Overall AMRK gets a fundamental rating of 5 out of 10. We evaluated AMRK against 22 industry peers in the Distributors industry. While AMRK seems to be doing ok healthwise, there are quite some concerns on its profitability. 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.
- AMRK had a positive operating cash flow in the past year.
- 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 has a Return On Assets of 0.29%. This is comparable to the rest of the industry: AMRK outperforms 43.48% of its industry peers.
- With a Return On Equity value of 1.15%, AMRK perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 2.48%, AMRK is in line with its industry, outperforming 43.48% 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 14.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.29% | ||
| ROE | 1.15% | ||
| ROIC | 2.48% |
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
- AMRK has a Profit Margin of 0.06%. This is comparable to the rest of the industry: AMRK outperforms 47.83% of its industry peers.
- In the last couple of years the Profit Margin of AMRK has declined.
- AMRK's Operating Margin of 0.39% is on the low side compared to the rest of the industry. AMRK is outperformed by 60.87% of its industry peers.
- In the last couple of years the Operating Margin of AMRK has declined.
- AMRK's Gross Margin of 2.01% is on the low side compared to the rest of the industry. AMRK is outperformed by 78.26% of its industry peers.
- In the last couple of years the Gross Margin of AMRK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.39% | ||
| PM (TTM) | 0.06% | ||
| GM | 2.01% |
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.
- The number of shares outstanding for AMRK has been increased compared to 1 year ago.
- AMRK has more shares outstanding than it did 5 years ago.
- AMRK has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.43 indicates that AMRK is not in any danger for bankruptcy at the moment.
- AMRK has a better Altman-Z score (5.43) than 69.57% of its industry peers.
- The Debt to FCF ratio of AMRK is 1.58, which is an excellent value as it means it would take AMRK, only 1.58 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of AMRK (1.58) is better than 82.61% of its industry peers.
- A Debt/Equity ratio of 1.13 is on the high side and indicates that AMRK has dependencies on debt financing.
- AMRK has a worse Debt to Equity ratio (1.13) than 69.57% of its industry peers.
- Although AMRK does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 1.58 | ||
| Altman-Z | 5.43 |
ROIC/WACC0.28
WACC8.96%
2.3 Liquidity
- AMRK has a Current Ratio of 1.37. This is a normal value and indicates that AMRK is financially healthy and should not expect problems in meeting its short term obligations.
- AMRK has a Current ratio of 1.37. This is comparable to the rest of the industry: AMRK outperforms 43.48% of its industry peers.
- A Quick Ratio of 0.58 indicates that AMRK may have some problems paying its short term obligations.
- AMRK has a worse Quick ratio (0.58) than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- The earnings per share for AMRK have decreased strongly by -66.67% in the last year.
- Measured over the past years, AMRK shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.41% on average per year.
- Looking at the last year, AMRK shows a very strong growth in Revenue. The Revenue has grown by 20.29%.
- AMRK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.99% yearly.
EPS 1Y (TTM)-66.67%
EPS 3Y-43.33%
EPS 5Y-14.41%
EPS Q2Q%-110.81%
Revenue 1Y (TTM)20.29%
Revenue growth 3Y10.4%
Revenue growth 5Y14.99%
Sales Q2Q%35.57%
3.2 Future
- AMRK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.99% yearly.
- Based on estimates for the next years, AMRK will show a quite strong growth in Revenue. The Revenue will grow by 8.66% on average per year.
EPS Next Y50.66%
EPS Next 2Y78.9%
EPS Next 3Y66.62%
EPS Next 5Y46.99%
Revenue Next Year11.5%
Revenue Next 2Y8.89%
Revenue Next 3Y10.04%
Revenue Next 5Y8.66%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 50.43, which means the current valuation is very expensive for AMRK.
- AMRK's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, AMRK is valued quite expensively.
- A Price/Forward Earnings ratio of 9.23 indicates a reasonable valuation of AMRK.
- Based on the Price/Forward Earnings ratio, AMRK is valued cheaper than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, AMRK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.43 | ||
| Fwd PE | 9.23 |
4.2 Price Multiples
- AMRK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AMRK is cheaper than 60.87% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, AMRK is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.56 | ||
| EV/EBITDA | 12.9 |
4.3 Compensation for Growth
- AMRK's 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 66.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)1
PEG (5Y)N/A
EPS Next 2Y78.9%
EPS Next 3Y66.62%
5. Dividend
5.1 Amount
- AMRK has a Yearly Dividend Yield of 2.74%.
- Compared to an average industry Dividend Yield of 0.97, AMRK pays a better dividend. On top of this AMRK pays more dividend than 82.61% 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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
- AMRK pays out 258.96% of its income as dividend. This is not a sustainable payout ratio.
DP258.96%
EPS Next 2Y78.9%
EPS Next 3Y66.62%
A-MARK PRECIOUS METALS INC / AMRK FAQ
What is the ChartMill fundamental rating of A-MARK PRECIOUS METALS INC (AMRK) stock?
ChartMill assigns a fundamental rating of 5 / 10 to AMRK.
What is the valuation status for AMRK stock?
ChartMill assigns a valuation rating of 6 / 10 to A-MARK PRECIOUS METALS INC (AMRK). This can be considered as Fairly Valued.
How profitable is A-MARK PRECIOUS METALS INC (AMRK) stock?
A-MARK PRECIOUS METALS INC (AMRK) has a profitability rating of 3 / 10.
How financially healthy is A-MARK PRECIOUS METALS INC?
The financial health rating of A-MARK PRECIOUS METALS INC (AMRK) is 5 / 10.
Is the dividend of A-MARK PRECIOUS METALS INC sustainable?
The dividend rating of A-MARK PRECIOUS METALS INC (AMRK) is 4 / 10 and the dividend payout ratio is 258.96%.