PAN AMERICAN SILVER CORP (PAAS) Stock Fundamental Analysis
NYSE:PAAS - New York Stock Exchange, Inc. - CA6979001089 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to PAAS. PAAS was compared to 155 industry peers in the Metals & Mining industry. While PAAS has a great health rating, its profitability is only average at the moment. PAAS is not valued too expensively and it also shows a decent 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.
The reported net income has been mixed in the past 5 years: PAAS reported negative net income in multiple years.
PAAS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.32%, PAAS is doing good in the industry, outperforming 72.90% of the companies in the same industry.
With a decent Return On Equity value of 6.46%, PAAS is doing good in the industry, outperforming 70.32% of the companies in the same industry.
The Return On Invested Capital of PAAS (6.63%) is better than 70.32% of its industry peers.
| 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 80.65% of its industry peers.
PAAS's Profit Margin has declined in the last couple of years.
The Operating Margin of PAAS (18.53%) is better than 74.19% of its industry peers.
PAAS's Operating Margin has improved in the last couple of years.
The Gross Margin of PAAS (24.13%) is better than 64.52% of its industry peers.
PAAS's Gross Margin has improved in the last couple of years.
| 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
PAAS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PAAS has less shares outstanding than it did 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
An Altman-Z score of 3.29 indicates that PAAS is not in any danger for bankruptcy at the moment.
PAAS's Altman-Z score of 3.29 is fine compared to the rest of the industry. PAAS outperforms 61.94% of its industry peers.
The Debt to FCF ratio of PAAS is 1.51, which is an excellent value as it means it would take PAAS, only 1.51 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.51, PAAS belongs to the top of the industry, outperforming 85.16% of the companies in the same industry.
A Debt/Equity ratio of 0.16 indicates that PAAS is not too dependend on debt financing.
PAAS has a Debt to Equity ratio of 0.16. This is comparable to the rest of the industry: PAAS outperforms 53.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 3.29 |
ROIC/WACC0.78
WACC8.55%
2.3 Liquidity
A Current Ratio of 2.93 indicates that PAAS has no problem at all paying its short term obligations.
PAAS has a better Current ratio (2.93) than 64.52% of its industry peers.
PAAS has a Quick Ratio of 1.94. This is a normal value and indicates that PAAS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.94, PAAS is in the better half of the industry, outperforming 61.29% 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.
PAAS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.51% yearly.
The Revenue has grown by 18.34% in the past year. This is quite good.
Measured over the past years, PAAS shows a quite strong growth in Revenue. The Revenue has been growing by 15.85% on average per year.
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
The Earnings Per Share is expected to grow by 2.59% on average over the next years.
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 5Y2.59%
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 accelerating: in the next years the growth will be better 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
A Price/Earnings ratio of 24.18 indicates a rather expensive 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 71.61% of the companies listed in the same industry.
PAAS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.45, the valuation of PAAS can be described as correct.
PAAS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PAAS is cheaper than 61.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, PAAS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.18 | ||
| Fwd PE | 14.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PAAS is valued a bit cheaper than 70.97% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PAAS is valued cheaply inside the industry as 80.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.7 | ||
| EV/EBITDA | 9.23 |
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.
PAAS has a very decent profitability rating, which 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)0.41
PEG (5Y)47.02
EPS Next 2Y59.4%
EPS Next 3Y23.95%
5. Dividend
5.1 Amount
PAAS has a Yearly Dividend Yield of 1.47%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.85, PAAS pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.39, PAAS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
5.2 History
On average, the dividend of PAAS grows each year by 19.89%, which is quite nice.
PAAS has paid a dividend for at least 10 years, which is 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
46.64% of the earnings are spent on dividend by PAAS. This is a bit on the high side, but may be sustainable.
PAAS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP46.64%
EPS Next 2Y59.4%
EPS Next 3Y23.95%
29.01
+0.05 (+0.17%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners58.92%
Inst Owner Change3.99%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap10.51B
Analysts80
Price Target26.33 (-9.24%)
Short Float %2.78%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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)62.84%
Min EPS beat(2)-3.07%
Max EPS beat(2)128.76%
EPS beat(4)2
Avg EPS beat(4)40.14%
Min EPS beat(4)-28.1%
Max EPS beat(4)128.76%
EPS beat(8)3
Avg EPS beat(8)2.62%
EPS beat(12)5
Avg EPS beat(12)4.03%
EPS beat(16)5
Avg EPS beat(16)-6.04%
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)6.66%
PT rev (3m)24.13%
EPS NQ rev (1m)47.91%
EPS NQ rev (3m)13.57%
EPS NY rev (1m)0%
EPS NY rev (3m)3.72%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.18 | ||
| Fwd PE | 14.45 | ||
| P/S | 3.51 | ||
| P/FCF | 19.7 | ||
| P/OCF | 12.54 | ||
| P/B | 2.18 | ||
| P/tB | 2.18 | ||
| EV/EBITDA | 9.23 |
EPS(TTM)1.2
EY4.14%
EPS(NY)2.01
Fwd EY6.92%
FCF(TTM)1.47
FCFY5.08%
OCF(TTM)2.31
OCFY7.97%
SpS8.26
BVpS13.3
TBVpS13.3
PEG (NY)0.41
PEG (5Y)47.02
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 | 3.29 |
F-Score9
WACC8.55%
ROIC/WACC0.78
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 5Y2.59%
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 Year125.64%
EBIT Next 3Y43.41%
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%