TSX:FVI

Stock Analysis Report

Fortuna Silver Mines

Executive Summary

Fortuna Silver Mines Inc. engages in the exploration, extraction, and processing of precious and base metal deposits in Latin America.

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.

Risks

  • Fortuna Silver Mines has significant price volatility in the past 3 months.
  • Fortuna Silver Mines is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Fortuna Silver Mines's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.4%

FVI

3.4%

CA Metals and Mining

1.3%

CA Market


1 Year Return

-17.8%

FVI

22.0%

CA Metals and Mining

-0.1%

CA Market

FVI underperformed the Metals and Mining industry which returned 22% over the past year.

FVI underperformed the Market in Canada which returned -0.1% over the past year.


Share holder returns

FVIIndustryMarket
7 Day2.4%3.4%1.3%
30 Day-7.0%0.7%4.7%
90 Day19.6%8.3%1.6%
1 Year-17.8%-17.8%22.9%22.0%3.4%-0.1%
3 Year-52.7%-52.7%-10.0%-11.7%19.1%8.4%
5 Year-0.6%-0.6%4.1%0.3%23.2%5.7%

Price Volatility Vs. Market

How volatile is Fortuna Silver Mines's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 month ago | Simply Wall St

Does Fortuna Silver Mines Inc. (TSE:FVI) Have A Volatile Share Price?

Valuation

Is Fortuna Silver Mines undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Fortuna Silver Mines's share price is below the future cash flow value, and at a moderate discount (> 20%).

Fortuna Silver Mines's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Fortuna Silver Mines is overvalued based on earnings compared to the CA Metals and Mining industry average.

Fortuna Silver Mines is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Fortuna Silver Mines, we can't assess if its growth is good value.


Price Based on Value of Assets

Fortuna Silver Mines is good value based on assets compared to the CA Metals and Mining industry average.


Next Steps

Future Growth

How is Fortuna Silver Mines expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Fortuna Silver Mines's revenue is expected to grow significantly at over 20% yearly.

Fortuna Silver Mines's earnings are expected to grow by 14% yearly, however this is not considered high growth (20% yearly).

Fortuna Silver Mines's revenue growth is expected to exceed the Canada market average.

Fortuna Silver Mines's earnings growth is expected to exceed the Canada market average.

Fortuna Silver Mines's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Fortuna Silver Mines will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Fortuna Silver Mines performed over the past 5 years?

42.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Fortuna Silver Mines has delivered over 20% year on year earnings growth in the past 5 years.

Fortuna Silver Mines's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Fortuna Silver Mines's 1-year earnings growth is negative, it can't be compared to the CA Metals and Mining industry average.


Return on Equity

Fortuna Silver Mines has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Fortuna Silver Mines used its assets less efficiently than the CA Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Fortuna Silver Mines has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Fortuna Silver Mines's financial position?


Financial Position Analysis

Fortuna Silver Mines is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Fortuna Silver Mines's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Fortuna Silver Mines's level of debt (11.4%) compared to net worth is satisfactory (less than 40%).

Fortuna Silver Mines had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.

Debt is well covered by operating cash flow (98.2%, greater than 20% of total debt).

Fortuna Silver Mines earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.9x debt.


Next Steps

Dividend

What is Fortuna Silver Mines's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Fortuna Silver Mines's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Fortuna Silver Mines's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Fortuna Silver Mines has not reported any payouts.

Unable to verify if Fortuna Silver Mines's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Fortuna Silver Mines has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Fortuna Silver Mines's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Jorge A. Ganoza Durant (49yo)

11.1yrs

Tenure

US$5,527,843

Compensation

Mr. Jorge A. Ganoza Durant, B.Sc. Eng, co-founded Fortuna Silver Mines Inc. (formerly Fortuna Ventures Inc.) in 2004. Mr. Durant has been the Chief Executive Officer and President of Fortuna Silver Mines I ...


CEO Compensation Analysis

Jorge A.'s remuneration is higher than average for companies of similar size in Canada.

Jorge A.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.1yrs

Average Tenure

56yo

Average Age

The tenure for the Fortuna Silver Mines management team is about average.


Board Age and Tenure

7.1yrs

Average Tenure

52yo

Average Age

The tenure for the Fortuna Silver Mines board of directors is about average.


Insider Trading

More shares have been bought than sold by Fortuna Silver Mines individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$64,52827 Jun 19
Alfredo Arturo Sillau Valdez
EntityIndividual
Role
Member of the Board of Directors
Director
Shares16,502
Max PriceUS$3.91
BuyUS$281,12821 Jun 19
Jorge A. Ganoza Durant
EntityIndividual
Role
Chief Executive Officer
President
Shares77,000
Max PriceUS$3.92
BuyUS$588,89617 May 19
Jorge A. Ganoza Durant
EntityIndividual
Role
Chief Executive Officer
President
Shares170,000
Max PriceUS$3.55

Ownership Breakdown


Management Team

  • Gordon Jang (54yo)

    Vice President of Finance & Accounting

    • Tenure: 2.4yrs
  • Simon T. Ridgway (70yo)

    Chairman of the Board

    • Tenure: 13.3yrs
    • Compensation: US$297.30k
  • Mario Szotlender (58yo)

    Co-Founder & Director

    • Tenure: 11.3yrs
    • Compensation: US$225.30k
  • David Volkert (66yo)

    Vice President of Exploration

    • Tenure: 3.1yrs
    • Compensation: US$753.10k
  • Jorge A. Ganoza Durant (49yo)

    President

    • Tenure: 11.1yrs
    • Compensation: US$5.53m
  • Luis Ganoza Durant (48yo)

    Chief Financial Officer

    • Tenure: 13.3yrs
    • Compensation: US$3.17m
  • Manuel Carlos

    Vice President of Operations

    • Tenure: 8.1yrs
    • Compensation: US$1.64m
  • Carlos Baca

    Investor Relations Manager

    • Tenure: 0yrs
  • Eric Chapman

    Vice President of Technical Services

    • Tenure: 2.7yrs
    • Compensation: US$855.57k
  • Linda Desaulniers

    Legal Counsel

    • Tenure: 1yrs

Board Members

  • Simon T. Ridgway (70yo)

    Chairman of the Board

    • Tenure: 13.3yrs
    • Compensation: US$297.30k
  • Mario Szotlender (58yo)

    Co-Founder & Director

    • Tenure: 11.3yrs
    • Compensation: US$225.30k
  • David Farrell (50yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$192.36k
  • Jorge A. Ganoza Durant (49yo)

    President

    • Tenure: 11.1yrs
    • Compensation: US$5.53m
  • David Laing (63yo)

    Director

    • Tenure: 3yrs
    • Compensation: US$157.86k
  • Kylie Dickson (38yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: US$166.78k
  • Alfredo Arturo Sillau Valdez (52yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$161.36k

Company Information

Fortuna Silver Mines Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fortuna Silver Mines Inc.
  • Ticker: FVI
  • Exchange: TSX
  • Founded: 1990
  • Industry: Silver
  • Sector: Materials
  • Market Cap: CA$742.150m
  • Shares outstanding: 160.29m
  • Website: https://www.fortunasilver.com

Number of Employees


Location

  • Fortuna Silver Mines Inc.
  • 200 Burrard Street
  • Suite 650
  • Vancouver
  • British Columbia
  • V6C 3L6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FVITSX (The Toronto Stock Exchange)YesCommon SharesCACADFeb 1992
F4SDB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 1992
FVI NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNFeb 1992
FSMNYSE (New York Stock Exchange)YesCommon SharesUSUSDFeb 1992
0QYMLSE (London Stock Exchange)YesCommon SharesGBCADFeb 1992

Biography

Fortuna Silver Mines Inc. engages in the exploration, extraction, and processing of precious and base metal deposits in Latin America. The company explores for silver, gold, lead, and zinc deposits. Its pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 23:51
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.