First Majestic Silver Corp.
First Majestic Silver Corp. Fundamental Analysis
First Majestic Silver Corp. (AG) shows weak financial fundamentals with a PE ratio of 64.09, profit margin of 13.73%, and ROE of 6.78%. The company generates $1.3B in annual revenue with weak year-over-year growth of -2.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AG's fundamental strength across five key dimensions:
Efficiency Score
WeakAG struggles to generate sufficient returns from assets.
Valuation Score
ModerateAG shows balanced valuation metrics.
Growth Score
ModerateAG shows steady but slowing expansion.
Financial Health Score
ExcellentAG maintains a strong and stable balance sheet.
Profitability Score
WeakAG struggles to sustain strong margins.
Key Financial Metrics
Is AG Expensive or Cheap?
P/E Ratio
AG trades at 64.09 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AG's PEG of 0.40 indicates potential undervaluation.
Price to Book
The market values First Majestic Silver Corp. at 4.05 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.57 times EBITDA. This signals the market has high growth expectations.
How Well Does AG Make Money?
Net Profit Margin
For every $100 in sales, First Majestic Silver Corp. keeps $13.73 as profit after all expenses.
Operating Margin
Core operations generate 28.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.78 in profit for every $100 of shareholder equity.
ROA
First Majestic Silver Corp. generates $3.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
First Majestic Silver Corp. generates strong operating cash flow of $569.62M, reflecting robust business health.
Free Cash Flow
First Majestic Silver Corp. generates strong free cash flow of $352.45M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.71 in free cash annually.
FCF Yield
AG converts 3.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
64.09
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.40
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.83
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How AG Stacks Against Its Sector Peers
| Metric | AG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 64.09 | 24.91 | Worse (Expensive) |
| ROE | 6.78% | 840.00% | Weak |
| Net Margin | 13.73% | -105381.00% (disorted) | Strong |
| Debt/Equity | 0.11 | 0.55 | Strong (Low Leverage) |
| Current Ratio | 2.60 | 4.94 | Strong Liquidity |
| ROA | 3.72% | -4176.00% (disorted) | Weak |
AG outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews First Majestic Silver Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
5.08%
Industry Style: Cyclical, Commodity, Value
GrowingEPS CAGR
-71.73%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-25.96%
Industry Style: Cyclical, Commodity, Value
Declining