FORTUNA SILVER MINES INC (FSM)
CA3499151080 - Common Stock
We assign a fundamental rating of 4 out of 10 to FSM. FSM was compared to 154 industry peers in the Metals & Mining industry. While FSM is still in line with the averages on profitability rating, there are concerns on its financial health. FSM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FSM was profitable.
FSM had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: FSM reported negative net income in multiple years.
In the past 5 years FSM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.58%, FSM is in line with its industry, outperforming 48.05% of the companies in the same industry.
The Return On Equity of FSM (-4.10%) is comparable to the rest of the industry.
FSM's Return On Invested Capital of 5.66% is fine compared to the rest of the industry. FSM outperforms 67.53% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FSM is below the industry average of 8.86%.
The last Return On Invested Capital (5.66%) for FSM is above the 3 year average (5.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.58% | ||
| ROE | -4.1% | ||
| ROIC | 5.66% |
ROA(3y)-2.18%
ROA(5y)-0.39%
ROE(3y)-3.4%
ROE(5y)-0.69%
ROIC(3y)5.45%
ROIC(5y)5.48%
1.3 Margins
With a decent Operating Margin value of 14.66%, FSM is doing good in the industry, outperforming 75.32% of the companies in the same industry.
In the last couple of years the Operating Margin of FSM has declined.
FSM's Gross Margin of 24.49% is fine compared to the rest of the industry. FSM outperforms 66.23% of its industry peers.
In the last couple of years the Gross Margin of FSM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.66% | ||
| PM (TTM) | N/A | ||
| GM | 24.49% |
OM growth 3Y-17.84%
OM growth 5Y-10.83%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-14.73%
GM growth 5Y-7.77%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FSM is destroying value.
The number of shares outstanding for FSM has been increased compared to 1 year ago.
FSM has more shares outstanding than it did 5 years ago.
FSM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.95 indicates that FSM is not a great score, but indicates only limited risk for bankruptcy at the moment.
FSM has a Altman-Z score (1.95) which is in line with its industry peers.
FSM has a debt to FCF ratio of 3.32. This is a good value and a sign of high solvency as FSM would need 3.32 years to pay back of all of its debts.
FSM's Debt to FCF ratio of 3.32 is fine compared to the rest of the industry. FSM outperforms 75.97% of its industry peers.
FSM has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
FSM has a Debt to Equity ratio (0.17) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 3.32 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.75
WACC7.5%
2.3 Liquidity
FSM has a Current Ratio of 1.37. This is a normal value and indicates that FSM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of FSM (1.37) is worse than 78.57% of its industry peers.
A Quick Ratio of 0.89 indicates that FSM may have some problems paying its short term obligations.
The Quick ratio of FSM (0.89) is worse than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.67% over the past year.
Measured over the past 5 years, FSM shows a small growth in Earnings Per Share. The EPS has been growing by 1.75% on average per year.
The Revenue has grown by 23.62% in the past year. This is a very strong growth!
FSM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.19% yearly.
EPS 1Y (TTM)52.67%
EPS 3Y12.7%
EPS 5Y1.75%
EPS growth Q2Q250%
Revenue 1Y (TTM)23.62%
Revenue growth 3Y44.54%
Revenue growth 5Y26.19%
Revenue growth Q2Q61.07%
3.2 Future
Based on estimates for the next years, FSM will show a very negative growth in Earnings Per Share. The EPS will decrease by -28.37% on average per year.
The Revenue is expected to decrease by -13.80% on average over the next years. This is quite bad
EPS Next Y-50.02%
EPS Next 2Y-24.28%
EPS Next 3Y-28.37%
EPS Next 5YN/A
Revenue Next Year6.51%
Revenue Next 2Y-7.54%
Revenue Next 3Y-13.8%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 19.96, the valuation of FSM can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of FSM indicates a somewhat cheap valuation: FSM is cheaper than 72.08% of the companies listed in the same industry.
FSM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.06.
Based on the Price/Forward Earnings ratio of 40.10, the valuation of FSM can be described as expensive.
FSM's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.72. FSM is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.96 | ||
| Fwd PE | 40.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FSM is valued cheaply inside the industry as 87.66% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FSM is valued a bit cheaper than the industry average as 77.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.68 | ||
| EV/EBITDA | 4.58 |
4.3 Compensation for Growth
A cheap valuation may be justified as FSM's earnings are expected to decrease with -28.37% in the coming years.
PEG (NY)N/A
PEG (5Y)11.42
EPS Next 2Y-24.28%
EPS Next 3Y-28.37%
5. Dividend
5.1 Amount
FSM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FORTUNA SILVER MINES INC
NYSE:FSM (5/3/2024, 4:05:00 PM)
After market: 4.56 -0.03 (-0.65%)4.59
-0.09 (-1.92%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.96 | ||
| Fwd PE | 40.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)11.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.58% | ||
| ROE | -4.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.66% | ||
| PM (TTM) | N/A | ||
| GM | 24.49% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)52.67%
EPS 3Y12.7%
EPS 5Y
EPS growth Q2Q
EPS Next Y-50.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.62%
Revenue growth 3Y44.54%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y