Pan American Silver Corp
Pan American Silver Corp Fundamental Analysis
Pan American Silver Corp (PAASF) shows strong financial fundamentals with a PE ratio of 28.72, profit margin of 27.08%, and ROE of 16.85%. The company generates $3.3B in annual revenue with strong year-over-year growth of 21.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 84.3/100 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 PAASF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPAASF demonstrates superior asset utilization.
Valuation Score
ModeratePAASF shows balanced valuation metrics.
Growth Score
ModeratePAASF shows steady but slowing expansion.
Financial Health Score
ExcellentPAASF maintains a strong and stable balance sheet.
Profitability Score
ExcellentPAASF achieves industry-leading margins.
Key Financial Metrics
Is PAASF Expensive or Cheap?
P/E Ratio
PAASF trades at 28.72 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PAASF's PEG of 0.61 indicates potential undervaluation.
Price to Book
The market values Pan American 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 14.53 times EBITDA. This signals the market has high growth expectations.
How Well Does PAASF Make Money?
Net Profit Margin
For every $100 in sales, Pan American Silver Corp keeps $27.08 as profit after all expenses.
Operating Margin
Core operations generate 32.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.85 in profit for every $100 of shareholder equity.
ROA
Pan American Silver Corp generates $10.13 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 $1.25B, reflecting robust business health.
Free Cash Flow
Pan American Silver Corp generates strong free cash flow of $968.43M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.54 in free cash annually.
FCF Yield
PAASF converts 4.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How PAASF Stacks Against Its Sector Peers
| Metric | PAASF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.72 | 27.21 | Neutral |
| ROE | 16.85% | 861.00% | Weak |
| Net Margin | 27.08% | -120577.00% (disorted) | Strong |
| Debt/Equity | 0.13 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 2.69 | 4.82 | Strong Liquidity |
| ROA | 10.13% | -7640.00% (disorted) | Strong |
PAASF outperforms its industry in 4 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
15.67%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-44.19%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
42.31%
Industry Style: Cyclical, Commodity, Value
High Growth