PAN AMERICAN SILVER CORP (PAAS) Stock Fundamental Analysis
NYSE:PAAS - New York Stock Exchange, Inc. - CA6979001089 - Common Stock - Currency: USD
PAAS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 154 industry peers in the Metals & Mining industry. PAAS has only an average score on both its financial health and profitability. PAAS scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make PAAS a good candidate for value investing.
1. Profitability
1.1 Basic Checks
PAAS had positive earnings in the past year.
PAAS had a positive operating cash flow in the past year.
In multiple years PAAS reported negative net income over the last 5 years.
PAAS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PAAS (4.32%) is better than 72.08% of its industry peers.
The Return On Equity of PAAS (6.46%) is better than 70.78% of its industry peers.
With a decent Return On Invested Capital value of 6.63%, PAAS is doing good in the industry, outperforming 68.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 6.46% | ||
| ROIC | 6.63% |
ROA(3y)-3.47%
ROA(5y)-0.49%
ROE(3y)-5.12%
ROE(5y)-0.97%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PAAS has a better Profit Margin (10.40%) than 81.17% of its industry peers.
In the last couple of years the Profit Margin of PAAS has declined.
Looking at the Operating Margin, with a value of 18.53%, PAAS is in the better half of the industry, outperforming 74.68% of the companies in the same industry.
In the last couple of years the Operating Margin of PAAS has grown nicely.
PAAS has a better Gross Margin (24.13%) than 64.29% of its industry peers.
In the last couple of years the Gross Margin of PAAS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.53% | ||
| PM (TTM) | 10.4% | ||
| GM | 24.13% |
OM growth 3Y-8.68%
OM growth 5Y3.07%
PM growth 3Y-12.81%
PM growth 5Y-13.56%
GM growth 3Y-4.78%
GM growth 5Y2.77%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PAAS is destroying value.
The number of shares outstanding for PAAS has been reduced compared to 1 year ago.
PAAS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PAAS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.84 indicates that PAAS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.84, PAAS is in line with its industry, outperforming 57.14% of the companies in the same industry.
PAAS has a debt to FCF ratio of 1.51. This is a very positive value and a sign of high solvency as it would only need 1.51 years to pay back of all of its debts.
PAAS has a Debt to FCF ratio of 1.51. This is amongst the best in the industry. PAAS outperforms 83.77% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that PAAS is not too dependend on debt financing.
PAAS's Debt to Equity ratio of 0.16 is in line compared to the rest of the industry. PAAS outperforms 53.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 2.84 |
ROIC/WACC0.76
WACC8.72%
2.3 Liquidity
PAAS has a Current Ratio of 2.93. This indicates that PAAS is financially healthy and has no problem in meeting its short term obligations.
PAAS has a Current ratio of 2.93. This is in the better half of the industry: PAAS outperforms 65.58% of its industry peers.
A Quick Ratio of 1.94 indicates that PAAS should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.94, PAAS is doing good in the industry, outperforming 61.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
PAAS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 5900.00%, which is quite impressive.
The Earnings Per Share has been growing slightly by 0.51% on average over the past years.
The Revenue has grown by 18.34% in the past year. This is quite good.
The Revenue has been growing by 15.85% on average over the past years. This is quite good.
EPS 1Y (TTM)5900%
EPS 3Y0.86%
EPS 5Y0.51%
EPS Q2Q%4100%
Revenue 1Y (TTM)18.34%
Revenue growth 3Y19.96%
Revenue growth 5Y15.85%
Sales Q2Q%28.57%
3.2 Future
Based on estimates for the next years, PAAS will show a very negative growth in Earnings Per Share. The EPS will decrease by -19.00% on average per year.
Based on estimates for the next years, PAAS will show a decrease in Revenue. The Revenue will decrease by -3.24% on average per year.
EPS Next Y58.55%
EPS Next 2Y59.4%
EPS Next 3Y23.95%
EPS Next 5Y-19%
Revenue Next Year5.21%
Revenue Next 2Y4.64%
Revenue Next 3Y2.86%
Revenue Next 5Y-3.24%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.88, which indicates a rather expensive current valuation of PAAS.
Compared to the rest of the industry, the Price/Earnings ratio of PAAS indicates a somewhat cheap valuation: PAAS is cheaper than 75.97% of the companies listed in the same industry.
PAAS is valuated rather cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.88, the valuation of PAAS can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PAAS indicates a somewhat cheap valuation: PAAS is cheaper than 69.48% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.85, PAAS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 11.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PAAS is valued a bit cheaper than the industry average as 74.68% of the companies are valued more expensively.
83.77% of the companies in the same industry are more expensive than PAAS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.2 | ||
| EV/EBITDA | 7.66 |
4.3 Compensation for Growth
PAAS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of PAAS may justify a higher PE ratio.
A more expensive valuation may be justified as PAAS's earnings are expected to grow with 23.95% in the coming years.
PEG (NY)0.34
PEG (5Y)38.65
EPS Next 2Y59.4%
EPS Next 3Y23.95%
5. Dividend
5.1 Amount
PAAS has a Yearly Dividend Yield of 1.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.00, PAAS pays a bit more dividend than its industry peers.
PAAS's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
The dividend of PAAS is nicely growing with an annual growth rate of 19.89%!
PAAS has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of PAAS decreased recently.
Dividend Growth(5Y)19.89%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PAAS pays out 46.64% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP46.64%
EPS Next 2Y59.4%
EPS Next 3Y23.95%
23.85
-0.25 (-1.04%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners58.92%
Inst Owner Change3.96%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap8.64B
Analysts80
Price Target24.69 (3.52%)
Short Float %2.18%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend0.4
Dividend Growth(5Y)19.89%
DP46.64%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)68.16%
Min EPS beat(2)-3.07%
Max EPS beat(2)139.4%
EPS beat(4)2
Avg EPS beat(4)42.8%
Min EPS beat(4)-28.1%
Max EPS beat(4)139.4%
EPS beat(8)3
Avg EPS beat(8)3.95%
EPS beat(12)5
Avg EPS beat(12)4.91%
EPS beat(16)5
Avg EPS beat(16)-5.37%
Revenue beat(2)1
Avg Revenue beat(2)5.07%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)11.97%
Revenue beat(4)1
Avg Revenue beat(4)-3.5%
Min Revenue beat(4)-18.79%
Max Revenue beat(4)11.97%
Revenue beat(8)1
Avg Revenue beat(8)-4.04%
Revenue beat(12)2
Avg Revenue beat(12)-4.81%
Revenue beat(16)2
Avg Revenue beat(16)-5.4%
PT rev (1m)15.72%
PT rev (3m)18.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.21%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)3.13%
Revenue NY rev (3m)-6.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 11.88 | ||
| P/S | 2.89 | ||
| P/FCF | 16.2 | ||
| P/OCF | 10.31 | ||
| P/B | 1.79 | ||
| P/tB | 1.79 | ||
| EV/EBITDA | 7.66 |
EPS(TTM)1.2
EY5.03%
EPS(NY)2.01
Fwd EY8.42%
FCF(TTM)1.47
FCFY6.17%
OCF(TTM)2.31
OCFY9.7%
SpS8.26
BVpS13.3
TBVpS13.3
PEG (NY)0.34
PEG (5Y)38.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 6.46% | ||
| ROCE | 8.39% | ||
| ROIC | 6.63% | ||
| ROICexc | 7.71% | ||
| ROICexgc | 7.71% | ||
| OM | 18.53% | ||
| PM (TTM) | 10.4% | ||
| GM | 24.13% | ||
| FCFM | 17.83% |
ROA(3y)-3.47%
ROA(5y)-0.49%
ROE(3y)-5.12%
ROE(5y)-0.97%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-13.28%
ROICexcg growth 5Y4.91%
ROICexc growth 3Y-13.24%
ROICexc growth 5Y4.95%
OM growth 3Y-8.68%
OM growth 5Y3.07%
PM growth 3Y-12.81%
PM growth 5Y-13.56%
GM growth 3Y-4.78%
GM growth 5Y2.77%
F-Score9
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.51 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 53.73% | ||
| Cap/Sales | 10.18% | ||
| Interest Coverage | 14.82 | ||
| Cash Conversion | 74.74% | ||
| Profit Quality | 171.42% | ||
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.94 | ||
| Altman-Z | 2.84 |
F-Score9
WACC8.72%
ROIC/WACC0.76
Cap/Depr(3y)73.91%
Cap/Depr(5y)73.53%
Cap/Sales(3y)15.4%
Cap/Sales(5y)14.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5900%
EPS 3Y0.86%
EPS 5Y0.51%
EPS Q2Q%4100%
EPS Next Y58.55%
EPS Next 2Y59.4%
EPS Next 3Y23.95%
EPS Next 5Y-19%
Revenue 1Y (TTM)18.34%
Revenue growth 3Y19.96%
Revenue growth 5Y15.85%
Sales Q2Q%28.57%
Revenue Next Year5.21%
Revenue Next 2Y4.64%
Revenue Next 3Y2.86%
Revenue Next 5Y-3.24%
EBIT growth 1Y428.82%
EBIT growth 3Y9.55%
EBIT growth 5Y19.41%
EBIT Next Year111.84%
EBIT Next 3Y32.55%
EBIT Next 5Y-7.85%
FCF growth 1Y324.75%
FCF growth 3Y39.19%
FCF growth 5Y39.97%
OCF growth 1Y5697.52%
OCF growth 3Y22.69%
OCF growth 5Y20.76%