Pan American Silver Corp (PAAS, Financial), a prominent player in the metals and mining industry, has witnessed a significant uptick in its stock performance recently. With a current market capitalization of $7.27 billion and a stock price of $19.92, the company has seen a 0.32% gain over the past week and an impressive 43.15% surge over the past three months. This growth trajectory is supported by the company's current GF Value of $19.03, which suggests that the stock is fairly valued. Comparatively, three months ago, the GF Value was $18.41, indicating the stock was modestly undervalued at that time.
Company Overview
Pan American Silver Corp is deeply entrenched in the exploration, operation, and development of silver and gold-producing properties. Its portfolio includes a variety of additional products such as zinc, lead, and copper. The company operates several mines including La Colorada, Dolores, and Huaron among others. This extensive operation base provides a robust foundation for its market activities and financial performance.
Assessing Profitability
Pan American Silver's Profitability Rank stands at 6/10. The company's Operating Margin is 2.92%, which is better than 53.78% of its peers in the industry. Despite a negative Return on Equity (ROE) of -2.36% and Return on Assets (ROA) of -1.42%, these figures still rank better than 75.51% and 78.23% of the industry, respectively. Additionally, its Return on Invested Capital (ROIC) of 1.92% is superior to 84.91% of industry counterparts. Over the past decade, Pan American Silver has maintained profitability for six years, surpassing 73.25% of its peers.
Growth Prospects
The company's Growth Rank is 7/10. It has demonstrated a 3-Year Revenue Growth Rate per Share of 5.30%, and a 5-Year Rate of 6.20%, both of which are commendable compared to industry standards. Looking ahead, the estimated Total Revenue Growth Rate for the next three to five years is 7.18%, indicating a positive trajectory for future earnings.
Major Stakeholders
Significant shareholders include Azvalor Internacional FI (Trades, Portfolio), holding 3,026,690 shares (0.83% share percentage), followed by renowned investor Jim Simons (Trades, Portfolio) with 445,678 shares (0.12% share percentage), and Azvalor Blue Chips FI (Trades, Portfolio) holding 103,023 shares (0.03% share percentage). These stakeholders underscore the confidence in Pan American Silver's market strategy and future potential.
Competitive Landscape
In comparison to its competitors, Pan American Silver holds a strong position. Alamos Gold Inc (TSX:AGI, Financial) has a market cap of $6.1 billion, Kinross Gold Corp (TSX:K, Financial) is valued at $8.73 billion, and B2Gold Corp (TSX:BTO, Financial) stands at $3.41 billion. This positioning highlights Pan American Silver's significant presence and competitive edge within the metals and mining industry.
Conclusion
In summary, Pan American Silver Corp has demonstrated robust stock performance, underpinned by solid profitability metrics and promising growth prospects. The company's strategic operations and strong market positioning, combined with its fair valuation and positive future revenue projections, make it a noteworthy contender in the metals and mining sector. As it continues to navigate the complexities of mineral production and market dynamics, Pan American Silver remains a significant player to watch in the industry.
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.
