SILVERCORP METALS INC (SVM) Stock Fundamental Analysis
NYSEARCA:SVM - NYSE Arca - CA82835P1036 - Common Stock - Currency: USD
SVM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 154 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 evaluated to be cheap and growing strongly. This does not happen too often! With these ratings, SVM could be worth investigating further for value and growth investing!.
1. Profitability
1.1 Basic Checks
In the past year SVM was profitable.
In the past year SVM had a positive cash flow from operations.
In the past 5 years SVM has always been profitable.
In the past 5 years SVM always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.11%, SVM is doing good in the industry, outperforming 75.97% of the companies in the same industry.
With a decent Return On Equity value of 8.28%, SVM is doing good in the industry, outperforming 74.03% of the companies in the same industry.
SVM has a Return On Invested Capital of 7.10%. This is in the better half of the industry: SVM outperforms 71.43% of its industry peers.
SVM had an Average Return On Invested Capital over the past 3 years of 6.80%. This is below the industry average of 11.67%.
The 3 year average ROIC (6.80%) for SVM is below the current ROIC(7.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 8.28% | ||
| ROIC | 7.1% |
ROA(3y)4.44%
ROA(5y)4.93%
ROE(3y)6.55%
ROE(5y)7.11%
ROIC(3y)6.8%
ROIC(5y)7.31%
1.3 Margins
Looking at the Profit Margin, with a value of 19.47%, SVM belongs to the top of the industry, outperforming 89.61% of the companies in the same industry.
SVM's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 34.55%, SVM belongs to the best of the industry, outperforming 88.96% of the companies in the same industry.
In the last couple of years the Operating Margin of SVM has grown nicely.
SVM has a better Gross Margin (46.64%) than 86.36% of its industry peers.
In the last couple of years the Gross Margin of SVM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.55% | ||
| PM (TTM) | 19.47% | ||
| GM | 46.64% |
OM growth 3Y3.35%
OM growth 5Y2.84%
PM growth 3Y11.5%
PM growth 5Y-2.06%
GM growth 3Y1.08%
GM growth 5Y0.71%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SVM is destroying value.
SVM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SVM has more shares outstanding
SVM has a worse debt/assets ratio than last year.
2.2 Solvency
SVM has an Altman-Z score of 2.64. 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.
SVM's Altman-Z score of 2.64 is in line compared to the rest of the industry. SVM outperforms 51.95% of its industry peers.
SVM has a debt to FCF ratio of 2.13. This is a good value and a sign of high solvency as SVM would need 2.13 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.13, SVM belongs to the top of the industry, outperforming 81.17% of the companies in the same industry.
SVM has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.16, SVM is in line with its industry, outperforming 53.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.85
WACC8.33%
2.3 Liquidity
SVM has a Current Ratio of 5.05. This indicates that SVM is financially healthy and has no problem in meeting its short term obligations.
SVM has a better Current ratio (5.05) than 83.77% of its industry peers.
A Quick Ratio of 4.95 indicates that SVM has no problem at all paying its short term obligations.
The Quick ratio of SVM (4.95) is better than 84.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.05 | ||
| Quick Ratio | 4.95 |
3. Growth
3.1 Past
SVM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 100.00%, which is quite impressive.
The Earnings Per Share has been growing by 14.87% on average over the past years. This is quite good.
The Revenue has grown by 38.90% in the past year. This is a very strong growth!
SVM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.48% yearly.
EPS 1Y (TTM)100%
EPS 3Y11.32%
EPS 5Y14.87%
EPS Q2Q%133.33%
Revenue 1Y (TTM)38.9%
Revenue growth 3Y11.11%
Revenue growth 5Y13.48%
Sales Q2Q%75.98%
3.2 Future
SVM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.39% yearly.
Based on estimates for the next years, SVM will show a very strong growth in Revenue. The Revenue will grow by 20.44% on average per year.
EPS Next Y3.52%
EPS Next 2Y13.48%
EPS Next 3Y30.74%
EPS Next 5Y21.39%
Revenue Next Year0.09%
Revenue Next 2Y12.51%
Revenue Next 3Y29.9%
Revenue Next 5Y20.44%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.60, which indicates a very decent valuation of SVM.
Based on the Price/Earnings ratio, SVM is valued cheaper than 91.56% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. SVM is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.21 indicates a reasonable valuation of SVM.
Based on the Price/Forward Earnings ratio, SVM is valued a bit cheaper than the industry average as 73.38% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SVM to the average of the S&P500 Index (21.90), we can say SVM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 11.21 |
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 88.31% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SVM indicates a rather cheap valuation: SVM is cheaper than 81.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.22 | ||
| EV/EBITDA | 5.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SVM does not grow enough to justify the current Price/Earnings ratio.
SVM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SVM's earnings are expected to grow with 30.74% in the coming years.
PEG (NY)3.29
PEG (5Y)0.78
EPS Next 2Y13.48%
EPS Next 3Y30.74%
5. Dividend
5.1 Amount
With a yearly dividend of 0.54%, SVM is not a good candidate for dividend investing.
SVM's Dividend Yield is a higher than the industry average which is at 2.98.
With a Dividend Yield of 0.54, SVM pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
The dividend of SVM has a limited annual growth rate of 0.08%.
SVM has paid a dividend for at least 10 years, which is 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
8.50% of the earnings are spent on dividend by SVM. This is a low number and sustainable payout ratio.
The dividend of SVM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP8.5%
EPS Next 2Y13.48%
EPS Next 3Y30.74%
4.64
0 (0%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners43.69%
Inst Owner Change14.15%
Ins Owners3.93%
Ins Owner ChangeN/A
Market Cap1.01B
Analysts80
Price Target5.45 (17.46%)
Short Float %7.79%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend0.03
Dividend Growth(5Y)0.08%
DP8.5%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.46%
Min EPS beat(2)-15.99%
Max EPS beat(2)22.9%
EPS beat(4)3
Avg EPS beat(4)11.38%
Min EPS beat(4)-15.99%
Max EPS beat(4)32.01%
EPS beat(8)6
Avg EPS beat(8)6.98%
EPS beat(12)8
Avg EPS beat(12)3.63%
EPS beat(16)9
Avg EPS beat(16)0.9%
Revenue beat(2)0
Avg Revenue beat(2)-1.58%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)-1.21%
Revenue beat(4)1
Avg Revenue beat(4)-0.1%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)3.52%
Revenue beat(8)4
Avg Revenue beat(8)1.65%
Revenue beat(12)6
Avg Revenue beat(12)1.34%
Revenue beat(16)8
Avg Revenue beat(16)1.27%
PT rev (1m)0.68%
PT rev (3m)2.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.98%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 11.21 | ||
| P/S | 3.38 | ||
| P/FCF | 19.22 | ||
| P/OCF | 7.29 | ||
| P/B | 1.44 | ||
| P/tB | 1.44 | ||
| EV/EBITDA | 5.5 |
EPS(TTM)0.4
EY8.62%
EPS(NY)0.41
Fwd EY8.92%
FCF(TTM)0.24
FCFY5.2%
OCF(TTM)0.64
OCFY13.71%
SpS1.37
BVpS3.23
TBVpS3.23
PEG (NY)3.29
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 8.28% | ||
| ROCE | 9.72% | ||
| ROIC | 7.1% | ||
| ROICexc | 10.88% | ||
| ROICexgc | 10.88% | ||
| OM | 34.55% | ||
| PM (TTM) | 19.47% | ||
| GM | 46.64% | ||
| FCFM | 17.6% |
ROA(3y)4.44%
ROA(5y)4.93%
ROE(3y)6.55%
ROE(5y)7.11%
ROIC(3y)6.8%
ROIC(5y)7.31%
ROICexc(3y)9.97%
ROICexc(5y)10.72%
ROICexgc(3y)9.97%
ROICexgc(5y)10.72%
ROCE(3y)9.31%
ROCE(5y)10%
ROICexcg growth 3Y0.48%
ROICexcg growth 5Y1.35%
ROICexc growth 3Y0.48%
ROICexc growth 5Y1.35%
OM growth 3Y3.35%
OM growth 5Y2.84%
PM growth 3Y11.5%
PM growth 5Y-2.06%
GM growth 3Y1.08%
GM growth 5Y0.71%
F-Score5
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.13 | ||
| Debt/EBITDA | 0.8 | ||
| Cap/Depr | 262.05% | ||
| Cap/Sales | 28.78% | ||
| Interest Coverage | 819.54 | ||
| Cash Conversion | 101.87% | ||
| Profit Quality | 90.4% | ||
| Current Ratio | 5.05 | ||
| Quick Ratio | 4.95 | ||
| Altman-Z | 2.64 |
F-Score5
WACC8.33%
ROIC/WACC0.85
Cap/Depr(3y)222.74%
Cap/Depr(5y)228.42%
Cap/Sales(3y)28.24%
Cap/Sales(5y)28.54%
Profit Quality(3y)105.45%
Profit Quality(5y)104.07%
High Growth Momentum
Growth
EPS 1Y (TTM)100%
EPS 3Y11.32%
EPS 5Y14.87%
EPS Q2Q%133.33%
EPS Next Y3.52%
EPS Next 2Y13.48%
EPS Next 3Y30.74%
EPS Next 5Y21.39%
Revenue 1Y (TTM)38.9%
Revenue growth 3Y11.11%
Revenue growth 5Y13.48%
Sales Q2Q%75.98%
Revenue Next Year0.09%
Revenue Next 2Y12.51%
Revenue Next 3Y29.9%
Revenue Next 5Y20.44%
EBIT growth 1Y64.37%
EBIT growth 3Y14.83%
EBIT growth 5Y16.7%
EBIT Next Year19.13%
EBIT Next 3Y39.24%
EBIT Next 5Y26.91%
FCF growth 1Y87.19%
FCF growth 3Y9.38%
FCF growth 5Y4.66%
OCF growth 1Y51.39%
OCF growth 3Y8.88%
OCF growth 5Y12.42%