Endeavour Silver Corp. Fundamental Analysis (TSX: EDR.TO)
Endeavour Silver Corp. (TSX: EDR.TO) shows weak financial fundamentals with a PE ratio of 48.26, profit margin of 8.73%, and ROE of 10.49%. The company generates $0.7B in annual revenue with weak year-over-year growth of 1.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze EDR.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakEDR.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateEDR.TO shows balanced valuation metrics.
Growth Score
WeakEDR.TO faces weak or negative growth trends.
Financial Health Score
ExcellentEDR.TO maintains a strong and stable balance sheet.
Profitability Score
WeakEDR.TO struggles to sustain strong margins.
Key Financial Metrics
Is EDR.TO Expensive or Cheap?
P/E Ratio
EDR.TO trades at 48.26 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EDR.TO's PEG of 0.13 indicates potential undervaluation.
Price to Book
The market values Endeavour Silver Corp. at 4.62 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.53 times EBITDA. This signals the market has high growth expectations.
How Well Does EDR.TO Make Money?
Net Profit Margin
For every $100 in sales, Endeavour Silver Corp. keeps $8.73 as profit after all expenses.
Operating Margin
Core operations generate 25.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.49 in profit for every $100 of shareholder equity.
ROA
Endeavour Silver Corp. generates $5.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Endeavour Silver Corp. produces operating cash flow of $99.39M, showing steady but balanced cash generation.
Free Cash Flow
Endeavour Silver Corp. generates weak or negative free cash flow of $-40.97M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.14 in free cash annually.
FCF Yield
EDR.TO converts -1.25% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
48.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How EDR.TO Stacks Against Its Sector Peers
| Metric | EDR.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 48.26 | 27.39 | Worse (Expensive) |
| ROE | 10.49% | 1206.00% | Weak |
| Net Margin | 8.73% | 224.00% | Weak |
| Debt/Equity | 0.35 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 1.97 | 3.14 | Neutral |
| ROA | 5.04% | 2757.00% | Weak |
EDR.TO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Endeavour Silver Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
80.36%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-5673.82%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-23.99%
Industry Style: Cyclical, Commodity, Value
Declining