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

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$17.46 $0.27 (1.57%) PAAS stock closing price Sep 22, 2017 (Closing)
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Pan American Silver
Updated on : Sep 22, 2017
previous close
PAAS 17.5 (0%)
S&P 500 2502.2 (0%)
Closing Price On: Sep 22, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Mining-Silver
Sector :
Basic Materials
5 Quarter Revenue
Revenue Growth
2017-Q2
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-0.9%
Operating Profit
Operating Margin:
21.6%
Sector Average:
8.5%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
46.7M
Debt/Equity Ratio:
 0.03
Compared to the industry
Cash Flow
Operating cash flow:
$42.9M
Net Income:
$36M
Dividend Yield
PAAS dividend yield:
0.46%
PROS      CONS
Operating Margins
Low Debt Burden
ROIC
Long Term Growth
FCF Margin
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PAAS PS :
3.3
Industry PS :
1.4
Sector:   Basic Materials.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
8.7%
Return on Equity:
8.6%
Free Cash Flow Margin:
1.2%
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PAAS Stock Analysis

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

Pan American Silver Corp. (USA) Stock Rating 3.3/5

Our Pan American Silver stock opinion is based on fundamentals of the company. This Pan American Silver stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy PAAS stock?

  • Pan American Silver's average operating margin of 21.6% was exceptional.
  • With its debt/equity ratio of  0.03, 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 8.7%.

Should you sell PAAS stock?

  • Revenue declined at a CAGR of -0.9% over the last 5 years.
  • The PAAS stock currently trades at a PE of 30.6, which is expensive, compared to the industry average of 22.2.
  • The company is trading at a price to sales multiple of 3.3, which is overvalued in comparison to the Mining-Silver industry average multiple of 1.4.
  • The company has an anaemic Free Cash Flow (FCF) margin of 1.2%.

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