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

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$16.28 $0.62 (3.67%) PAAS stock closing price Jul 16, 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?

  • The TTM operating margin was good at 17.24 for Pan American Silver.
  • Net margins stood at a healthy 18.2% (average) for Pan American Silver in the Trailing 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's return on invested capital of 7.3 is good.

Should you sell PAAS stock?

  • Revenue declined at a CAGR of -2.6 over the last 5 years.
  • The company has an operating cash flow which is 0.726 times the net income. This is not a healthy sign.
  • The PAAS stock currently trades at a PE of 25.8, which is expensive, compared to the sector average of 19.3.
  • The company is trading at a price to sales multiple of 3, which is higher in comparison to the Basic Materials sector average of 1.4, 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.