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

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$4.51 $0.03 (0.67%) FSM stock closing price Sep 20, 2018 (Closing)

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 4.3/5

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 2018 Q2 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?

  • Long term revenue growth has been strong with a 5 year compounded annual growth of 11.2.
  • The TTM operating margin was good at 41.36 for Fortuna Silver Mines.
  • Net margins stood at a healthy 24.5% (average) for Fortuna Silver Mines in the Trailing Twelve Months.
  • With its debt/equity ratio of 0.07, Fortuna Silver Mines has a lower debt burden when compared to the Basic Materials average.
  • The Fortuna Silver Mines stock currently trades at a price to earnings ratio of 14.9, compared to the sector average of 17.8. We rate this as a positive.
  • Fortuna Silver Mines's return on invested capital of 17.6 is good.
  • The company has a healthy free cash flow margin of 12.6.

Should you sell FSM stock?

  • The company is trading at a price to sales multiple of 2.6, which is higher in comparison to the Basic Materials sector average of 1.3, making FSM stock expensive.

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.