SILVERCORP METALS INC (SVM.CA) Stock Fundamental Analysis
TSX:SVM - Toronto Stock Exchange - CA82835P1036 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to SVM. SVM was compared to 811 industry peers in the Metals & Mining industry. While SVM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SVM is growing strongly while it also seems undervalued. This is an interesting combination These ratings could make SVM a good candidate for value and growth investing.
1. Profitability
1.1 Basic Checks
In the past year SVM was profitable.
SVM had a positive operating cash flow in the past year.
SVM had positive earnings in each of the past 5 years.
Each year in the past 5 years SVM had a positive operating cash flow.
1.2 Ratios
SVM has a better Return On Assets (6.38%) than 92.37% of its industry peers.
The Return On Equity of SVM (10.05%) is better than 92.99% of its industry peers.
The Return On Invested Capital of SVM (5.83%) is better than 92.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SVM is significantly below the industry average of 24.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 10.05% | ||
| ROIC | 5.83% |
ROA(3y)4.15%
ROA(5y)5.25%
ROE(3y)5.78%
ROE(5y)7.31%
ROIC(3y)6.18%
ROIC(5y)6.57%
1.3 Margins
SVM has a better Profit Margin (26.76%) than 97.29% of its industry peers.
SVM's Profit Margin has declined in the last couple of years.
SVM has a better Operating Margin (34.56%) than 96.80% of its industry peers.
SVM's Operating Margin has declined in the last couple of years.
SVM's Gross Margin of 47.18% is amongst the best of the industry. SVM outperforms 95.33% of its industry peers.
SVM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.56% | ||
| PM (TTM) | 26.76% | ||
| GM | 47.18% |
OM growth 3Y-8.78%
OM growth 5Y-3.76%
PM growth 3Y-11.27%
PM growth 5Y-6.24%
GM growth 3Y-4.4%
GM growth 5Y-2.18%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SVM is destroying value.
The number of shares outstanding for SVM has been increased compared to 1 year ago.
SVM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SVM has a worse debt to assets ratio.
2.2 Solvency
SVM has an Altman-Z score of 2.40. This is not the best score and indicates that SVM is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of SVM (2.40) is comparable to the rest of the industry.
SVM has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as SVM would need 3.34 years to pay back of all of its debts.
The Debt to FCF ratio of SVM (3.34) is better than 92.74% of its industry peers.
SVM has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.15, SVM is doing worse than 63.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 2.4 |
ROIC/WACC0.66
WACC8.83%
2.3 Liquidity
A Current Ratio of 4.61 indicates that SVM has no problem at all paying its short term obligations.
SVM has a better Current ratio (4.61) than 75.52% of its industry peers.
A Quick Ratio of 4.35 indicates that SVM has no problem at all paying its short term obligations.
SVM has a better Quick ratio (4.35) than 74.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.61 | ||
| Quick Ratio | 4.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 80.00% over the past year.
SVM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.13% yearly.
The Revenue has grown by 28.94% in the past year. This is a very strong growth!
Measured over the past years, SVM shows a small growth in Revenue. The Revenue has been growing by 4.77% on average per year.
EPS 1Y (TTM)80%
EPS 3Y-7.17%
EPS 5Y2.13%
EPS Q2Q%100%
Revenue 1Y (TTM)28.94%
Revenue growth 3Y3.86%
Revenue growth 5Y4.77%
Sales Q2Q%42.91%
3.2 Future
The Earnings Per Share is expected to grow by 44.56% on average over the next years. This is a very strong growth
Based on estimates for the next years, SVM will show a very strong growth in Revenue. The Revenue will grow by 24.40% on average per year.
EPS Next Y99.48%
EPS Next 2Y43.89%
EPS Next 3Y37.07%
EPS Next 5Y44.56%
Revenue Next Year39.36%
Revenue Next 2Y19.05%
Revenue Next 3Y23.07%
Revenue Next 5Y24.4%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.66, the valuation of SVM can be described as reasonable.
94.83% of the companies in the same industry are more expensive than SVM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.22. SVM is valued rather cheaply when compared to this.
SVM is valuated reasonably with a Price/Forward Earnings ratio of 8.44.
SVM's Price/Forward Earnings ratio is rather cheap when compared to the industry. SVM is cheaper than 94.46% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.86. SVM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 8.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SVM indicates a rather cheap valuation: SVM is cheaper than 96.19% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SVM is valued cheaper than 93.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.39 | ||
| EV/EBITDA | 4.13 |
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 SVM may justify a higher PE ratio.
A more expensive valuation may be justified as SVM's earnings are expected to grow with 37.07% in the coming years.
PEG (NY)0.1
PEG (5Y)4.54
EPS Next 2Y43.89%
EPS Next 3Y37.07%
5. Dividend
5.1 Amount
SVM has a yearly dividend return of 0.70%, which is pretty low.
SVM's Dividend Yield is rather good when compared to the industry average which is at 2.90. SVM pays more dividend than 95.45% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, SVM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
The dividend of SVM has a limited annual growth rate of 0.08%.
SVM has been paying a dividend for at least 10 years, so it has a reliable track record.
As SVM did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.08%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
SVM pays out 6.94% of its income as dividend. This is a sustainable payout ratio.
The dividend of SVM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP6.94%
EPS Next 2Y43.89%
EPS Next 3Y37.07%
TSX:SVM (5/2/2025, 7:00:00 PM)
4.83
-0.07 (-1.43%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners39.34%
Inst Owner ChangeN/A
Ins Owners3.8%
Ins Owner ChangeN/A
Market Cap1.05B
Analysts80
Price Target7.48 (54.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend0.03
Dividend Growth(5Y)0.08%
DP6.94%
Div Incr Years0
Div Non Decr Years9
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.75%
Min EPS beat(2)6.59%
Max EPS beat(2)22.9%
EPS beat(4)4
Avg EPS beat(4)17.38%
Min EPS beat(4)6.59%
Max EPS beat(4)32.01%
EPS beat(8)6
Avg EPS beat(8)5.76%
EPS beat(12)8
Avg EPS beat(12)4.13%
EPS beat(16)10
Avg EPS beat(16)3.39%
Revenue beat(2)1
Avg Revenue beat(2)1.15%
Min Revenue beat(2)-1.21%
Max Revenue beat(2)3.52%
Revenue beat(4)2
Avg Revenue beat(4)2.3%
Min Revenue beat(4)-1.21%
Max Revenue beat(4)7.66%
Revenue beat(8)4
Avg Revenue beat(8)1.76%
Revenue beat(12)7
Avg Revenue beat(12)1.84%
Revenue beat(16)8
Avg Revenue beat(16)1.18%
PT rev (1m)-2.22%
PT rev (3m)-2.22%
EPS NQ rev (1m)6.45%
EPS NQ rev (3m)30.27%
EPS NY rev (1m)3.95%
EPS NY rev (3m)9.72%
Revenue NQ rev (1m)12.57%
Revenue NQ rev (3m)30.09%
Revenue NY rev (1m)1.75%
Revenue NY rev (3m)4.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 8.44 | ||
| P/S | 2.86 | ||
| P/FCF | 23.39 | ||
| P/OCF | 6.44 | ||
| P/B | 1.07 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 4.13 |
EPS(TTM)0.5
EY10.35%
EPS(NY)0.57
Fwd EY11.85%
FCF(TTM)0.21
FCFY4.28%
OCF(TTM)0.75
OCFY15.53%
SpS1.69
BVpS4.5
TBVpS4.5
PEG (NY)0.1
PEG (5Y)4.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 10.05% | ||
| ROCE | 8.9% | ||
| ROIC | 5.83% | ||
| ROICexc | 8.87% | ||
| ROICexgc | 8.87% | ||
| OM | 34.56% | ||
| PM (TTM) | 26.76% | ||
| GM | 47.18% | ||
| FCFM | 12.21% |
ROA(3y)4.15%
ROA(5y)5.25%
ROE(3y)5.78%
ROE(5y)7.31%
ROIC(3y)6.18%
ROIC(5y)6.57%
ROICexc(3y)8.9%
ROICexc(5y)9.49%
ROICexgc(3y)8.9%
ROICexgc(5y)9.49%
ROCE(3y)9.43%
ROCE(5y)10.03%
ROICexcg growth 3Y-9.07%
ROICexcg growth 5Y-4.95%
ROICexc growth 3Y-9.07%
ROICexc growth 5Y-4.95%
OM growth 3Y-8.78%
OM growth 5Y-3.76%
PM growth 3Y-11.27%
PM growth 5Y-6.24%
GM growth 3Y-4.4%
GM growth 5Y-2.18%
F-Score6
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 3.34 | ||
| Debt/EBITDA | 0.88 | ||
| Cap/Depr | 282.93% | ||
| Cap/Sales | 32.14% | ||
| Interest Coverage | 969.28 | ||
| Cash Conversion | 96.58% | ||
| Profit Quality | 45.63% | ||
| Current Ratio | 4.61 | ||
| Quick Ratio | 4.35 | ||
| Altman-Z | 2.4 |
F-Score6
WACC8.83%
ROIC/WACC0.66
Cap/Depr(3y)218.35%
Cap/Depr(5y)207.11%
Cap/Sales(3y)28.92%
Cap/Sales(5y)27.23%
Profit Quality(3y)119.11%
Profit Quality(5y)110.42%
High Growth Momentum
Growth
EPS 1Y (TTM)80%
EPS 3Y-7.17%
EPS 5Y2.13%
EPS Q2Q%100%
EPS Next Y99.48%
EPS Next 2Y43.89%
EPS Next 3Y37.07%
EPS Next 5Y44.56%
Revenue 1Y (TTM)28.94%
Revenue growth 3Y3.86%
Revenue growth 5Y4.77%
Sales Q2Q%42.91%
Revenue Next Year39.36%
Revenue Next 2Y19.05%
Revenue Next 3Y23.07%
Revenue Next 5Y24.4%
EBIT growth 1Y51.88%
EBIT growth 3Y-5.26%
EBIT growth 5Y0.83%
EBIT Next Year177.61%
EBIT Next 3Y54.1%
EBIT Next 5Y49.6%
FCF growth 1Y-6.23%
FCF growth 3Y-5.88%
FCF growth 5Y-4.89%
OCF growth 1Y29.43%
OCF growth 3Y2.15%
OCF growth 5Y5.4%