Recent weeks have seen a notable surge in the stock price of Pan American Silver Corp (PAAS, Financial), a key player in the metals and mining industry. With a current market capitalization of $6.89 billion, the company's shares have climbed to $18.87, marking an impressive 18.49% gain over the past week. This upward trend extends over the past three months, with an 18.06% increase in stock value. When assessed against the GF Value, which stands at $18.86, Pan American Silver Corp is considered fairly valued, maintaining consistency with its past GF Value of $17.74 from three months ago. This valuation suggests that the company's stock price is aligned with its intrinsic value, as defined by GuruFocus.com.
Introduction to Pan American Silver Corp
Pan American Silver Corp (PAAS, Financial) operates within the metals and mining sector, focusing primarily on the extraction and sale of silver and gold. The company's portfolio includes a variety of mines such as La Colorada, Dolores, and Timmins West, among others, which also produce zinc, lead, and copper. These operations span across the Americas, positioning PAAS as a significant entity in the industry with a diverse range of precious and base metals.
Assessing Profitability
PAAS's financial health can be gauged through its Profitability Rank of 6/10, which reflects a moderate level of profitability within the industry. The company's Operating Margin stands at 2.92%, surpassing over half of its peers. However, its Return on Equity (ROE) is currently at -2.36%, and Return on Assets (ROA) at -1.42%, indicating challenges in generating profits from its equity and assets, respectively. The Return on Invested Capital (ROIC) of 1.92% suggests that PAAS is more effective in generating cash flow relative to the capital invested in the business. Over the past decade, the company has managed to maintain profitability for six years, demonstrating resilience amidst market fluctuations.
Growth Trajectory of Pan American Silver Corp
The Growth Rank for PAAS is currently at 4/10, indicating a moderate growth trajectory. The company has experienced a 3-Year Revenue Growth Rate per Share of 5.30% and a 5-Year Revenue Growth Rate per Share of 6.20%. These figures suggest a steady increase in revenue over time. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 1.77%, which, while modest, still positions PAAS better than over a third of its industry counterparts.
Key Shareholders in Pan American Silver Corp
Among the notable shareholders of PAAS, Azvalor Internacional FI (Trades, Portfolio) holds the largest stake with 3,026,690 shares, accounting for 0.83% of the company. Renowned investor Jim Simons (Trades, Portfolio) follows with 445,678 shares, representing 0.12%, and Azvalor Blue Chips FI (Trades, Portfolio) holds a smaller stake of 103,023 shares, or 0.03%. These significant investors reflect confidence in the company's potential and stability.
Competitive Landscape
In comparison to its industry peers, PAAS stands strong with a market cap of $6.89 billion. Alamos Gold Inc (TSX:AGI, Financial) has a slightly lower market cap of $5.9 billion, while Kinross Gold Corp (TSX:K, Financial) surpasses PAAS with a market cap of $7.87 billion. B2Gold Corp (TSX:BTO, Financial) trails with a market cap of $3.73 billion, showcasing the competitive nature of the metals and mining sector.
Conclusion
In summary, Pan American Silver Corp's recent stock performance has been robust, with significant gains over the past week and three months. The company's valuation aligns with its GF Value, indicating a fair market price. While PAAS's profitability metrics present a mixed picture, its consistent profitability over the years and moderate growth rates suggest a stable financial foundation. The company's shareholder base includes reputable investors, and its market position is competitive within the industry. As the global economy continues to evolve, PAAS's strategic operations and financial health will be key factors in its ongoing success and appeal to value investors.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
