Fortuna Silver Mines Stock Analysis, Valuation (NYSE:FSM)

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$4.58 $0.11 (2.46%) FSM stock closing price Feb 21, 2018 (Closing)
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Fortuna Silver Mines
Updated on : Feb 21, 2018
previous close
FSM 4.6 (0%)
S&P 500 2701.3 (0%)
Closing Price On: Feb 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Mining-Silver
Sector :
Basic Materials
5 Quarter Revenue
Revenue Growth
2017-Q3
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
28.1%
Sector Average:
8.7%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
41.3M
Debt/Equity Ratio:
 0.08
Compared to the industry
Cash Flow
Operating cash flow:
$20.3M
Net Income:
$10.3M
PROS      CONS
Operating Margins
Net Margins
Low Debt Burden
ROIC
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
FSM PS :
3.1
Industry PS :
1.5
Sector:   Basic Materials.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
11%
Return on Equity:
8.1%
Free Cash Flow Margin:
8.6%
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FSM Stock Analysis

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Take a look at Amigobulls Fortuna Silver Mines stock analysis video. This is our analyst opinion covering the buy and sell arguments for FSM stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Fortuna Silver Mines Inc Stock Rating 4.4/5

Amigobulls FSM stock analysis relies on business fundamentals such as Fortuna Silver Mines revenue growth, profits and return on equity measures from the latest quarter 2017 Q3 earnings. We compare Fortuna Silver Mines valuation with its sector peers to gauge relative attractiveness of FSM stock. Fortuna Silver Mines stock rating is our opinion about the business fundamentals of the company.

Should you buy FSM stock?

  • Fortuna Silver Mines had a healthy average operating margin of 28.1% over the last 4 quarters.
  • LTM Net margins were good at 15.4% for Fortuna Silver Mines.
  • With its debt/equity ratio of  0.08, Fortuna Silver Mines has a lower debt burden when compared to the Basic Materials average.
  • FSM stock is trading at an earnings multiple of 16.4 which is better than the industry average of 21.3.
  • Fortuna Silver Mines has an attractive ROIC (Return on Invested Capital) of 11%

Should you sell FSM stock?

  • The company is trading at a price to sales multiple of 3.1, which is overvalued in comparison to the Mining-Silver industry average multiple of 1.5.

Comments on this video and Fortuna Silver Mines stock

Amigobulls Fortuna Silver Mines stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of FSM stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Among the financials of the company, Fortuna Silver Mines revenue growth along with the profit or net income give a clear picture of the financial health. One can also combine technical analysis and fundamental analysis to get a holistic picture about FSM stock.