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PAAS

Pan American Silver TSX:PAAS Stock Report

Last Price

CA$27.59

Market Cap

CA$5.7b

7D

-0.7%

1Y

-20.6%

Updated

27 Jun, 2022

Data

Company Financials +
PAAS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health6/6
Dividends4/6

PAAS Stock Overview

Pan American Silver Corp., together with its subsidiaries, engages in the exploration, mine development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines in Canada, Mexico, Peru, Argentina, and Bolivia.

Pan American Silver Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Pan American Silver
Historical stock prices
Current Share PriceCA$27.59
52 Week HighCA$38.51
52 Week LowCA$26.19
Beta1.16
1 Month Change-4.50%
3 Month Change-19.14%
1 Year Change-20.56%
3 Year Change62.97%
5 Year Change26.50%
Change since IPO3,841.43%

Recent News & Updates

Jun 01
Calculating The Fair Value Of Pan American Silver Corp. (TSE:PAAS)

Calculating The Fair Value Of Pan American Silver Corp. (TSE:PAAS)

Does the June share price for Pan American Silver Corp. ( TSE:PAAS ) reflect what it's really worth? Today, we will...

Shareholder Returns

PAASCA Metals and MiningCA Market
7D-0.7%-4.9%0.3%
1Y-20.6%-12.7%-4.0%

Return vs Industry: PAAS underperformed the Canadian Metals and Mining industry which returned -12.7% over the past year.

Return vs Market: PAAS underperformed the Canadian Market which returned -4% over the past year.

Price Volatility

Is PAAS's price volatile compared to industry and market?
PAAS volatility
PAAS Average Weekly Movement6.3%
Metals and Mining Industry Average Movement10.9%
Market Average Movement10.0%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market4.4%

Stable Share Price: PAAS is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PAAS's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19797,100Michael Steinmannhttps://www.panamericansilver.com

Pan American Silver Corp., together with its subsidiaries, engages in the exploration, mine development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines in Canada, Mexico, Peru, Argentina, and Bolivia. It holds interests in the La Colorada, Dolores, Huaron, Morococha, Shahuindo, La Arena, Timmins West, Bell Creek, Manantial Espejo, San Vicente, Joaquin, Cap-Oeste Sur Este, and Navidad mines. The company was formerly known as Pan American Minerals Corp. and changed its name to Pan American Silver Corp. in April 1995.

Pan American Silver Fundamentals Summary

How do Pan American Silver's earnings and revenue compare to its market cap?
PAAS fundamental statistics
Market CapUS$4.44b
Earnings (TTM)US$181.74m
Revenue (TTM)US$1.70b

24.8x

P/E Ratio

2.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PAAS income statement (TTM)
RevenueUS$1.70b
Cost of RevenueUS$1.08b
Gross ProfitUS$622.94m
Other ExpensesUS$441.20m
EarningsUS$181.74m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.86
Gross Margin36.55%
Net Profit Margin10.66%
Debt/Equity Ratio1.3%

How did PAAS perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

45%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is PAAS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PAAS?

Other financial metrics that can be useful for relative valuation.

PAAS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.5x
Enterprise Value/EBITDA7.5x
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

How does PAAS's PE Ratio compare to its peers?

PAAS PE Ratio vs Peers
The above table shows the PE ratio for PAAS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average1095.9x
FR First Majestic Silver
4165.2x108.7%CA$2.7b
MAG MAG Silver
102.1x73.8%CA$1.6b
EDR Endeavour Silver
47.5x58.9%CA$820.1m
FVI Fortuna Silver Mines
16x-14.2%CA$1.2b
PAAS Pan American Silver
24.4x31.7%CA$5.7b

Price-To-Earnings vs Peers: PAAS is good value based on its Price-To-Earnings Ratio (24.8x) compared to the peer average (1095.9x).


Price to Earnings Ratio vs Industry

How does PAAS's PE Ratio compare vs other companies in the CA Metals and Mining Industry?

Price-To-Earnings vs Industry: PAAS is expensive based on its Price-To-Earnings Ratio (24.8x) compared to the Canadian Metals and Mining industry average (11x)


Price to Earnings Ratio vs Fair Ratio

What is PAAS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PAAS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.8x
Fair PE Ratio23.9x

Price-To-Earnings vs Fair Ratio: PAAS is expensive based on its Price-To-Earnings Ratio (24.8x) compared to the estimated Fair Price-To-Earnings Ratio (24x).


Share Price vs Fair Value

What is the Fair Price of PAAS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PAAS (CA$27.59) is trading above our estimate of fair value (CA$26.85)

Significantly Below Fair Value: PAAS is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: PAAS is good value based on its PEG Ratio (0.8x)


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Future Growth

How is Pan American Silver forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


31.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PAAS's forecast earnings growth (31.7% per year) is above the savings rate (1.6%).

Earnings vs Market: PAAS's earnings (31.7% per year) are forecast to grow faster than the Canadian market (8.2% per year).

High Growth Earnings: PAAS's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PAAS's revenue (2.4% per year) is forecast to grow slower than the Canadian market (6.9% per year).

High Growth Revenue: PAAS's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PAAS's Return on Equity is forecast to be low in 3 years time (12.5%).


Discover growth companies

Past Performance

How has Pan American Silver performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


16.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PAAS has high quality earnings.

Growing Profit Margin: PAAS's current net profit margins (10.7%) are lower than last year (18.3%).


Past Earnings Growth Analysis

Earnings Trend: PAAS's earnings have grown by 16.8% per year over the past 5 years.

Accelerating Growth: PAAS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PAAS had negative earnings growth (-26.4%) over the past year, making it difficult to compare to the Metals and Mining industry average (-5.8%).


Return on Equity

High ROE: PAAS's Return on Equity (6.8%) is considered low.


Discover strong past performing companies

Financial Health

How is Pan American Silver's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PAAS's short term assets ($982.6M) exceed its short term liabilities ($362.0M).

Long Term Liabilities: PAAS's short term assets ($982.6M) exceed its long term liabilities ($490.4M).


Debt to Equity History and Analysis

Debt Level: PAAS has more cash than its total debt.

Reducing Debt: PAAS's debt to equity ratio has reduced from 4% to 1.3% over the past 5 years.

Debt Coverage: PAAS's debt is well covered by operating cash flow (1223.2%).

Interest Coverage: PAAS's interest payments on its debt are well covered by EBIT (368x coverage).


Balance Sheet


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Dividend

What is Pan American Silver current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.24%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PAAS's dividend (2.24%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: PAAS's dividend (2.24%) is low compared to the top 25% of dividend payers in the Canadian market (5.33%).


Stability and Growth of Payments

Stable Dividend: PAAS's dividend payments have been volatile in the past 10 years.

Growing Dividend: PAAS's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (45.1%), PAAS's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (58.1%), PAAS's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Michael Steinmann (55 yo)

7.33yrs

Tenure

US$4,224,553

Compensation

Mr. Michael Steinmann, Ph D., P.Geo., has been the President of Pan American Silver Corp. since February 18, 2015 and its Chief Executive Officer since January 1, 2016. Mr. Steinmann served as Executive Vi...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD4.22M) is about average for companies of similar size in the Canadian market ($USD3.62M).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PAAS's management team is seasoned and experienced (6.3 years average tenure).


Board Members

Experienced Board: PAAS's board of directors are considered experienced (6.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PAAS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Pan American Silver Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: Pan American Silver Corp.
  • Ticker: PAAS
  • Exchange: TSX
  • Founded: 1979
  • Industry: Silver
  • Sector: Materials
  • Implied Market Cap: CA$5.722b
  • Shares outstanding: 210.51m
  • Website: https://www.panamericansilver.com

Number of Employees


Location

  • Pan American Silver Corp.
  • 625 Howe Street
  • Suite 1440
  • Vancouver
  • British Columbia
  • V6C 2T6
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.