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

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$16.05 $0.43 (2.61%) PAAS stock closing price Feb 16, 2018 (Closing)
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Pan American Silver
Updated on : Feb 16, 2018
previous close
PAAS 16.1 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 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
Long Term Growth
5 Year CAGR:
-2.6%
Operating Profit
Operating Margin:
17%
Sector Average:
8.7%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
7.5M
Debt/Equity Ratio:
 0.01
Compared to the industry
Cash Flow
Operating cash flow:
$63.8M
Net Income:
$17.8M
Dividend Yield
PAAS dividend yield:
0.62%
PROS      CONS
Operating Margins
Net Margins
Low Debt Burden
ROIC
FCF Margin
Long Term Growth
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PAAS PS :
3.3
Industry PS :
1.5
Sector:   Basic Materials.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
6.9%
Return on Equity:
6.7%
Free Cash Flow Margin:
16.8%
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PAAS Stock Analysis

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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 3.3/5

Amigobulls PAAS stock analysis uses latest quarter 2017 Q3 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% was exceptional.
  • Net margins came in at average 12.2% for Pan American Silver over the last twelve months.
  • With its debt/equity ratio of  0.01, Pan American Silver has a lower debt burden when compared to the Basic Materials average.
  • Pan American Silver generates a high return on invested capital of 6.9%.
  • The company has a healthy free cash flow margin of 16.8%.

Should you sell PAAS stock?

  • The company saw an average annual sales decline of -2.6% in sales over the last 5 years.
  • Trading at a PE ratio of 33.4, PAAS stock is overvalued in comparison to industry average multiple of 21.4.
  • The company is trading at a price to sales multiple of 3.3, which is higher in comparison to the Mining-Silver industry average of 1.5, making PAAS stock expensive.

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.