Pan American Silver Corp.
Pan American Silver Corp. Fundamental Analysis
Pan American Silver Corp. (PAAS.TO) shows strong financial fundamentals with a PE ratio of 18.71, profit margin of 31.69%, and ROE of 19.65%. The company generates $4.0B in annual revenue with strong year-over-year growth of 30.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 88.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze PAAS.TO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPAAS.TO demonstrates superior asset utilization.
Valuation Score
ExcellentPAAS.TO trades at attractive valuation levels.
Growth Score
ModeratePAAS.TO shows steady but slowing expansion.
Financial Health Score
ExcellentPAAS.TO maintains a strong and stable balance sheet.
Profitability Score
ExcellentPAAS.TO achieves industry-leading margins.
Key Financial Metrics
Is PAAS.TO Expensive or Cheap?
P/E Ratio
PAAS.TO trades at 18.71 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PAAS.TO's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values Pan American Silver Corp. at 3.24 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.41 times EBITDA. This signals the market has high growth expectations.
How Well Does PAAS.TO Make Money?
Net Profit Margin
For every $100 in sales, Pan American Silver Corp. keeps $31.69 as profit after all expenses.
Operating Margin
Core operations generate 37.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.65 in profit for every $100 of shareholder equity.
ROA
Pan American Silver Corp. generates $12.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pan American Silver Corp. generates strong operating cash flow of $1.72B, reflecting robust business health.
Free Cash Flow
Pan American Silver Corp. generates strong free cash flow of $1.36B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.24 in free cash annually.
FCF Yield
PAAS.TO converts 5.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.84
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How PAAS.TO Stacks Against Its Sector Peers
| Metric | PAAS.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.71 | 25.00 | Better (Cheaper) |
| ROE | 19.65% | 1007.00% | Weak |
| Net Margin | 31.69% | -109430.00% (disorted) | Strong |
| Debt/Equity | 0.11 | 0.51 | Strong (Low Leverage) |
| Current Ratio | 2.84 | 6.05 | Strong Liquidity |
| ROA | 12.57% | -6723.00% (disorted) | Strong |
PAAS.TO outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pan American Silver Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
51.48%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
208.11%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
66.91%
Industry Style: Cyclical, Commodity, Value
High Growth