PAN AMERICAN SILVER CORP (PAAS) Stock Fundamental Analysis
USA - NYSE:PAAS - CA6979001089 - Common Stock
40.03 USD
+0.96 (+2.46%)
39.62 USD
-0.41 (-1.02%)
Taking everything into account, PAAS scores 6 out of 10 in our fundamental rating. PAAS was compared to 156 industry peers in the Metals & Mining industry. PAAS has an excellent financial health rating, but there are some minor concerns on its profitability. PAAS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year PAAS was profitable.
In the past year PAAS had a positive cash flow from operations.
In multiple years PAAS reported negative net income over the last 5 years.
Each year in the past 5 years PAAS had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.09%, PAAS belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
With a decent Return On Equity value of 10.53%, PAAS is doing good in the industry, outperforming 79.49% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.30%, PAAS is in the better half of the industry, outperforming 76.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.09% | ||
| ROE | 10.53% | ||
| ROIC | 8.3% |
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
The Profit Margin of PAAS (16.76%) is better than 83.33% 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 22.66%, PAAS is in the better half of the industry, outperforming 74.36% of the companies in the same industry.
PAAS's Operating Margin has improved in the last couple of years.
PAAS's Gross Margin of 28.26% is fine compared to the rest of the industry. PAAS outperforms 65.38% of its industry peers.
In the last couple of years the Gross Margin of PAAS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.66% | ||
| PM (TTM) | 16.76% | ||
| GM | 28.26% |
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
PAAS 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 PAAS has been reduced compared to 1 year ago.
The number of shares outstanding for PAAS has been increased compared to 5 years ago.
PAAS has a worse debt/assets ratio than last year.
2.2 Solvency
PAAS has an Altman-Z score of 5.00. This indicates that PAAS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PAAS (5.00) is better than 61.54% of its industry peers.
The Debt to FCF ratio of PAAS is 1.21, which is an excellent value as it means it would take PAAS, only 1.21 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.21, PAAS belongs to the best of the industry, outperforming 87.82% of the companies in the same industry.
A Debt/Equity ratio of 0.15 indicates that PAAS is not too dependend on debt financing.
PAAS's Debt to Equity ratio of 0.15 is in line compared to the rest of the industry. PAAS outperforms 52.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.21 | ||
| Altman-Z | 5 |
ROIC/WACC0.98
WACC8.47%
2.3 Liquidity
PAAS has a Current Ratio of 3.05. This indicates that PAAS is financially healthy and has no problem in meeting its short term obligations.
PAAS has a better Current ratio (3.05) than 60.90% of its industry peers.
A Quick Ratio of 2.11 indicates that PAAS has no problem at all paying its short term obligations.
With a Quick ratio value of 2.11, PAAS perfoms like the industry average, outperforming 59.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.05 | ||
| Quick Ratio | 2.11 |
3. Growth
3.1 Past
PAAS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1588.89%, which is quite impressive.
Measured over the past 5 years, PAAS shows a small growth in Earnings Per Share. The EPS has been growing by 0.51% on average per year.
PAAS shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.09%.
The Revenue has been growing by 15.85% on average over the past years. This is quite good.
EPS 1Y (TTM)1588.89%
EPS 3Y0.86%
EPS 5Y0.51%
EPS Q2Q%290.91%
Revenue 1Y (TTM)21.09%
Revenue growth 3Y19.96%
Revenue growth 5Y15.85%
Sales Q2Q%18.3%
3.2 Future
PAAS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.88% yearly.
Based on estimates for the next years, PAAS will show a small growth in Revenue. The Revenue will grow by 7.63% on average per year.
EPS Next Y137.38%
EPS Next 2Y70.71%
EPS Next 3Y39.27%
EPS Next 5Y1.88%
Revenue Next Year16.16%
Revenue Next 2Y10.75%
Revenue Next 3Y5.96%
Revenue Next 5Y7.63%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 26.34 indicates a quite expensive valuation of PAAS.
Based on the Price/Earnings ratio, PAAS is valued a bit cheaper than 73.72% of the companies in the same industry.
PAAS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.90, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.39 indicates a rather expensive valuation of PAAS.
Based on the Price/Forward Earnings ratio, PAAS is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
PAAS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.34 | ||
| Fwd PE | 17.39 |
4.2 Price Multiples
PAAS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PAAS is cheaper than 67.95% of the companies in the same industry.
PAAS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PAAS is cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.86 | ||
| EV/EBITDA | 13.08 |
4.3 Compensation for Growth
The 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.
PAAS's earnings are expected to grow with 39.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)51.22
EPS Next 2Y70.71%
EPS Next 3Y39.27%
5. Dividend
5.1 Amount
PAAS has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.45, PAAS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, PAAS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
On average, the dividend of PAAS grows each year by 19.89%, which is quite nice.
PAAS has been paying a dividend for at least 10 years, so it has a reliable track record.
PAAS has decreased its dividend recently.
Dividend Growth(5Y)19.89%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PAAS pays out 27.77% of its income as dividend. This is a sustainable payout ratio.
PAAS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.77%
EPS Next 2Y70.71%
EPS Next 3Y39.27%
40.03
+0.96 (+2.46%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners55.31%
Inst Owner Change0%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap16.89B
Analysts80
Price Target29.63 (-25.98%)
Short Float %3.58%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend0.4
Dividend Growth(5Y)19.89%
DP27.77%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)66.11%
Min EPS beat(2)3.45%
Max EPS beat(2)128.76%
EPS beat(4)3
Avg EPS beat(4)48.03%
Min EPS beat(4)-3.07%
Max EPS beat(4)128.76%
EPS beat(8)4
Avg EPS beat(8)7.71%
EPS beat(12)6
Avg EPS beat(12)14.41%
EPS beat(16)6
Avg EPS beat(16)-3.74%
Revenue beat(2)2
Avg Revenue beat(2)9.94%
Min Revenue beat(2)7.91%
Max Revenue beat(2)11.97%
Revenue beat(4)2
Avg Revenue beat(4)-0.18%
Min Revenue beat(4)-18.79%
Max Revenue beat(4)11.97%
Revenue beat(8)2
Avg Revenue beat(8)-2.92%
Revenue beat(12)3
Avg Revenue beat(12)-2.38%
Revenue beat(16)3
Avg Revenue beat(16)-3.88%
PT rev (1m)9.84%
PT rev (3m)10.91%
EPS NQ rev (1m)0.53%
EPS NQ rev (3m)21.76%
EPS NY rev (1m)3.68%
EPS NY rev (3m)49.72%
Revenue NQ rev (1m)18.69%
Revenue NQ rev (3m)18.69%
Revenue NY rev (1m)2.36%
Revenue NY rev (3m)10.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.34 | ||
| Fwd PE | 17.39 | ||
| P/S | 5.42 | ||
| P/FCF | 24.86 | ||
| P/OCF | 17.44 | ||
| P/B | 3.41 | ||
| P/tB | 3.41 | ||
| EV/EBITDA | 13.08 |
EPS(TTM)1.52
EY3.8%
EPS(NY)2.3
Fwd EY5.75%
FCF(TTM)1.61
FCFY4.02%
OCF(TTM)2.3
OCFY5.73%
SpS7.38
BVpS11.75
TBVpS11.75
PEG (NY)0.19
PEG (5Y)51.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.09% | ||
| ROE | 10.53% | ||
| ROCE | 10.51% | ||
| ROIC | 8.3% | ||
| ROICexc | 9.94% | ||
| ROICexgc | 9.94% | ||
| OM | 22.66% | ||
| PM (TTM) | 16.76% | ||
| GM | 28.26% | ||
| FCFM | 21.81% |
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 | 0.15 | ||
| Debt/FCF | 1.21 | ||
| Debt/EBITDA | 0.61 | ||
| Cap/Depr | 51.52% | ||
| Cap/Sales | 9.27% | ||
| Interest Coverage | 18.93 | ||
| Cash Conversion | 76.45% | ||
| Profit Quality | 130.14% | ||
| Current Ratio | 3.05 | ||
| Quick Ratio | 2.11 | ||
| Altman-Z | 5 |
F-Score9
WACC8.47%
ROIC/WACC0.98
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)1588.89%
EPS 3Y0.86%
EPS 5Y0.51%
EPS Q2Q%290.91%
EPS Next Y137.38%
EPS Next 2Y70.71%
EPS Next 3Y39.27%
EPS Next 5Y1.88%
Revenue 1Y (TTM)21.09%
Revenue growth 3Y19.96%
Revenue growth 5Y15.85%
Sales Q2Q%18.3%
Revenue Next Year16.16%
Revenue Next 2Y10.75%
Revenue Next 3Y5.96%
Revenue Next 5Y7.63%
EBIT growth 1Y326.96%
EBIT growth 3Y9.55%
EBIT growth 5Y19.41%
EBIT Next Year161.44%
EBIT Next 3Y44.83%
EBIT Next 5Y9.36%
FCF growth 1Y472.75%
FCF growth 3Y39.19%
FCF growth 5Y39.97%
OCF growth 1Y775.55%
OCF growth 3Y22.69%
OCF growth 5Y20.76%