Silvercorp Metals Inc. Fundamental Analysis (AMEX: SVM)
Silvercorp Metals Inc. (AMEX: SVM) shows weak financial fundamentals with a PE ratio of 95.71, profit margin of 6.05%, and ROE of 3.54%. The company generates $0.5B in annual revenue with strong year-over-year growth of 38.90%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.1/100 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 SVM's fundamental strength across five key dimensions:
Efficiency Score
WeakSVM struggles to generate sufficient returns from assets.
Valuation Score
ModerateSVM shows balanced valuation metrics.
Growth Score
ExcellentSVM delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSVM maintains a strong and stable balance sheet.
Profitability Score
WeakSVM struggles to sustain strong margins.
Key Financial Metrics
Is SVM Expensive or Cheap?
P/E Ratio
SVM trades at 95.71 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SVM's PEG of -0.32 indicates potential undervaluation.
Price to Book
The market values Silvercorp Metals Inc. at 2.83 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 16.25 times EBITDA. This signals the market has high growth expectations.
How Well Does SVM Make Money?
Net Profit Margin
For every $100 in sales, Silvercorp Metals Inc. keeps $6.05 as profit after all expenses.
Operating Margin
Core operations generate 56.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.54 in profit for every $100 of shareholder equity.
ROA
Silvercorp Metals Inc. generates $1.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Silvercorp Metals Inc. generates strong operating cash flow of $316.43M, reflecting robust business health.
Free Cash Flow
Silvercorp Metals Inc. produces free cash flow of $34.88M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.16 in free cash annually.
FCF Yield
SVM converts 1.25% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
95.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.12
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How SVM Stacks Against Its Sector Peers
| Metric | SVM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 95.71 | 27.37 | Worse (Expensive) |
| ROE | 3.54% | 1190.00% | Weak |
| Net Margin | 6.05% | 204.00% | Weak |
| Debt/Equity | 0.12 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 3.51 | 3.14 | Strong Liquidity |
| ROA | 1.93% | 2758.00% | Weak |
SVM outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Silvercorp Metals Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
58.40%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
42.90%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
51.06%
Industry Style: Cyclical, Commodity, Value
High Growth