Pan American Silver Stock Analysis, Valuation (NASDAQ:PAAS)

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$17.97 $0.41 (2.33%) PAAS stock closing price Jun 22, 2018 (Closing)

View the Pan American Silver stock analysis video on Amigobulls. This is our analyst opinion covering the buy and sell arguments for PAAS 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.

Pan American Silver Corp. (USA) Stock Rating 3.4/5

Amigobulls PAAS stock analysis uses latest quarter 2018 Q1 financial data like Pan American Silver revenue growth, profit margins and cash flows. We also use relative valuation metrics like PE ratio and price to sales ratio for Pan American Silver valuation analysis. Pan American Silver stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy PAAS stock?

  • Pan American Silver's average operating margin of 17.24 was exceptional.
  • LTM Net margins were good at 18.2% for Pan American Silver.
  • With a debt/equity ratio of 0.01, Pan American Silver is comparatively less leveraged than its peers in the -sectordesc- sector.
  • Pan American Silver generates a high return on invested capital of 7.3.

Should you sell PAAS stock?

  • The company saw an average annual sales decline of -2.6 in sales over the last 5 years.
  • Cash flow from operations is 0.726 times net income which is a negative signal.
  • Trading at a PE ratio of 28.5, PAAS stock is overvalued in comparison to sector average multiple of 19.4.
  • The company is trading at a price to sales multiple of 3.3, which is overvalued in comparison to the Basic Materials sector average multiple of 1.4.

Comments on this video and Pan American Silver stock

Investors can make use of the Amigobulls Pan American Silver stock analysis to ascertain how PAAS stock fares in fundamental analysis investment criteria. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

While doing a study of the company financials, Pan American Silver revenue growth and profit or net income are two main metrics which help in identifying whether PAAS stock is overvalued or undervalued. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.