Pan American Silver

TSX:PAAS

Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

PAAS

TSX

CA$4B

Market Cap

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Last updated 2019/03/20 23:43

Company description

Pan American Silver Corp., together with its subsidiaries, engages in exploration, extraction, processing, refining, and reclamation of silver mines. The last earnings update was 8 days ago. More info.

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PAAS Share Price and Events

7 Day Returns

0.3%

TSX:PAAS

-2.1%

CA Metals and Mining

0.3%

CA Market

1 Year Returns

-12.9%

TSX:PAAS

-5.9%

CA Metals and Mining

0.7%

CA Market

PAAS Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
Pan American Silver (PAAS)	0.3%	-7.8%	-9.1%	-12.9%	30.3%	24.6%
CA Metals and Mining	-2.1%	1.4%	13.1%	-5.9%	8.9%	-22%
CA Market	0.3%	2%	13.2%	0.7%	16.6%	5.6%

1 Year Return vs Industry and Market

PAAS underperformed the Metals and Mining industry which returned -5.9% over the past year.
PAAS underperformed the Market in Canada which returned 0.7% over the past year.

Price Volatility

PAAS

Industry

5yr Volatility vs Market

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PAAS Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

Here we compare the current share price of Pan American Silver to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Pan American Silver.

TSX:PAAS Discounted Cash Flow Data Sources
Data Point	Source	Value
Valuation Model		2 Stage Free Cash Flow to Equity
Levered Free Cash Flow	Average of 5 Analyst Estimates (S&P Global)	See below
Discount Rate (Cost of Equity)	See below	8.7%
Perpetual Growth Rate	10-Year CA Government Bond Rate	1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:PAAS
Data Point	Calculation/ Source	Result
Risk-Free Rate	10-Year CA Govt Bond Rate	1.9%
Equity Risk Premium	S&P Global	6%
Metals and Mining Unlevered Beta	Simply Wall St/ S&P Global	1.18
Re-levered Beta	= Unlevered beta (1 + (1- tax rate) (Debt/Equity)) = 1.181 (1 + (1- 26.5%) (0.99%))	1.127
Levered Beta	Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm)	1.13
Discount Rate/ Cost of Equity	= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 1.95% + (1.127 * 5.96%)	8.66%

Discounted Cash Flow Calculation for TSX:PAAS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Pan American Silver is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:PAAS DCF 1st Stage: Next 10 year cash flow forecast
	Levered FCF (USD, Millions)	Source	Present Value Discounted (@ 8.66%)
2019	124.93	Analyst x3	114.97
2020	292.33	Analyst x3	247.58
2021	103.00	Analyst x1	80.28
2022	34.50	Est @ -66.51%	24.74
2023	18.64	Est @ -45.97%	12.30
2024	12.75	Est @ -31.6%	7.74
2025	10.00	Est @ -21.53%	5.59
2026	8.55	Est @ -14.49%	4.40
2027	7.74	Est @ -9.56%	3.66
2028	7.26	Est @ -6.11%	3.16
Present value of next 10 years cash flows			$504.44

TSX:PAAS DCF 2nd Stage: Terminal Value
	Calculation	Result
Terminal Value	= FCF₂₀₂₈ × (1 + g) ÷ (Discount Rate – g) = $7.26 × (1 + 1.95%) ÷ (8.66% – 1.95%)	$110.27
Present Value of Terminal Value	= Terminal Value ÷ (1 + r)¹⁰ = $110.27 ÷ (1 + 8.66%)¹⁰	$48.04

TSX:PAAS Total Equity Value
	Calculation	Result
Total Equity Value	= Present value of next 10 years cash flows + Terminal Value = $504.44 + $48.04	$552.49
Equity Value per Share (USD)	= Total value / Shares Outstanding = $552.49 / 209.44	$2.64

TSX:PAAS Discount to Share Price
	Calculation	Result
Exchange Rate	USD/CAD (Reporting currency to currency of TSX:PAAS)	1.333
Value per Share (CAD)	= Value per Share in USD x Exchange Rate (USD/CAD) = $2.64 x 1.333	CA$3.52
Value per share (CAD)	From above.	CA$3.52
Current discount	Discount to share price of CA$17.62 = -1 x (CA$17.62 - CA$3.52) / CA$3.52	-401.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

The current share price of Pan American Silver is above its future cash flow value.

Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Pan American Silver's earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are Pan American Silver's earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

TSX:PAAS PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2018-12-31) in USD	$0.07
TSX:PAAS Share Price **	TSX (2019-03-20) in CAD	CA$17.62
TSX:PAAS Share Price converted to USD reporting currency	Exchange rate (CAD/ USD) 0.75	$13.22
Canada Metals and Mining Industry PE Ratio	Median Figure of 115 Publicly-Listed Metals and Mining Companies	12.49x
Canada Market PE Ratio	Median Figure of 542 Publicly-Listed Companies	14.78x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Pan American Silver.

TSX:PAAS PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= TSX:PAAS Share Price ÷ EPS (both in USD) = 13.22 ÷ 0.07	196.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Pan American Silver is overvalued based on earnings compared to the CA Metals and Mining industry average.
Pan American Silver is overvalued based on earnings compared to the Canada market.

Price based on expected Growth

Does Pan American Silver's expected growth come at a high price?

Raw Data

TSX:PAAS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	196.86x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts	37%per year
Canada Metals and Mining Industry PEG Ratio	Median Figure of 35 Publicly-Listed Metals and Mining Companies	0.7x
Canada Market PEG Ratio	Median Figure of 253 Publicly-Listed Companies	1.2x

*Line of best fit is calculated by linear regression .

TSX:PAAS PEG (Price to Earnings to Growth) Ratio Calculation
	Calculation	Outcome
PEG Ratio	= PE Ratio ÷ Net Income Annual Growth Rate = 196.86x ÷ 37%	5.32x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Pan American Silver is poor value based on expected growth next year.

Price based on value of assets

What value do investors place on Pan American Silver's assets?

Raw Data

TSX:PAAS PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2018-12-31) in USD	$9.83
TSX:PAAS Share Price *	TSX (2019-03-20) in CAD	CA$17.62
TSX:PAAS Share Price converted to USD reporting currency	Exchange rate (CAD/ USD) 0.75	$13.22
Canada Metals and Mining Industry PB Ratio	Median Figure of 1,080 Publicly-Listed Metals and Mining Companies	1.44x
Canada Market PB Ratio	Median Figure of 2,349 Publicly-Listed Companies	1.58x

TSX:PAAS PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= TSX:PAAS Share Price ÷ Book Value per Share (both in USD) = 13.22 ÷ 9.83	1.34x

* Primary Listing of Pan American Silver.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

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

Value checks

We assess Pan American Silver's value by looking at:

Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)

Full details on the Value part of the Simply Wall St company analysis model.

PAAS Future Performance

How is Pan American Silver expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!

37%

Expected annual growth in earnings.

Earnings growth vs Low Risk Savings

Is Pan American Silver expected to grow at an attractive rate?

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

Growth vs Market Checks

Pan American Silver's earnings growth is expected to exceed the Canada market average.
Pan American Silver's revenue growth is expected to exceed the Canada market average.

Annual Growth Rates Comparison

Raw Data

TSX:PAAS Future Growth Rates Data Sources
Data Point	Source	Value (per year)
TSX:PAAS Future Earnings Growth Rate	Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts	37%
TSX:PAAS Future Revenue Growth Rate	Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts	16.5%
Canada Metals and Mining Industry Earnings Growth Rate	Market Cap Weighted Average	33.3%
Canada Metals and Mining Industry Revenue Growth Rate	Market Cap Weighted Average	7%
Canada Market Earnings Growth Rate	Market Cap Weighted Average	17.8%
Canada Market Revenue Growth Rate	Market Cap Weighted Average	6.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations

Raw Data

TSX:PAAS Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (2 months ago)	See Below
Future Estimates	Average of up to 5 Analyst Estimates (S&P Global)	See Below

All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

TSX:PAAS Future Estimates Data
Date (Data in USD Millions)	Revenue	Cash Flow	Net Income *	Avg. No. Analysts
2023-12-31	1,896		262	1
2022-12-31	1,717		197	1
2021-12-31	1,599	351	75	2
2020-12-31	1,639	429	94	5
2019-12-31	1,348	332	79	5

TSX:PAAS Past Financials Data
Date (Data in USD Millions)	Revenue	Cash Flow	Net Income *
2018-12-31	784	155	10
2018-09-30	837	222	123
2018-06-30	840	244	150
2018-03-31	825	220	149
2017-12-31	817	225	121
2017-09-30	781	191	94
2017-06-30	824	229	119
2017-03-31	815	253	118
2016-12-31	775	215	100
2016-09-30	747	193	-55
2016-06-30	673	123	-164
2016-03-31	655	78	-206

*GAAP earnings excluding extraordinary items.

High Growth Checks

Pan American Silver's earnings are expected to grow significantly at over 20% yearly.
Pan American Silver's revenue is expected to grow by 16.5% yearly, however this is not considered high growth (20% yearly).

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.

Raw Data

TSX:PAAS Past and Future Earnings per Share
Data Point	Source	Value
Past Financials	Company Filings (2 months ago)	See Below
Future Estimates	Average of up to 5 Analyst Estimates (S&P Global)	See Below

All data from Pan American Silver Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:PAAS Future Estimates Data
Date (Data in USD Millions)	EPS *	EPS High Estimate	EPS Low Estimate	Avg. No. Analysts
2023-12-31	1.17	1.17	1.17	1.00
2022-12-31	0.87	0.87	0.87	1.00
2021-12-31	0.64	0.91	0.36	2.00
2020-12-31	0.85	0.85	0.85	1.00
2019-12-31	0.39	0.42	0.36	2.00

TSX:PAAS Past Financials Data
Date (Data in USD Millions)	EPS *
2018-12-31	0.07
2018-09-30	0.80
2018-06-30	0.98
2018-03-31	0.97
2017-12-31	0.79
2017-09-30	0.61
2017-06-30	0.78
2017-03-31	0.77
2016-12-31	0.66
2016-09-30	-0.36
2016-06-30	-1.08
2016-03-31	-1.35

*GAAP earnings excluding extraordinary items.

Performance in 3 years

In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.

Pan American Silver is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).

Show me more growth companies in the Metals and Mining industry

Future performance checks

We assess Pan American Silver's future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)

Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Pan American Silver has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PAAS Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.

Past earnings growth

Below we compare Pan American Silver's growth in the last year to its industry (Metals and Mining).

Past Earnings growth analysis

We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.

Pan American Silver has delivered over 20% year on year earnings growth in the past 5 years.
Pan American Silver's 1-year earnings growth is negative, it can't be compared to the 5-year average.
Pan American Silver's 1-year earnings growth is negative, it can't be compared to the CA Metals and Mining industry average.

Earnings and Revenue History

Pan American Silver's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.

Raw Data

All data from Pan American Silver Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:PAAS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions)	Revenue	Net Income *	G+A Expenses
2018-12-31	784.50	10.29	33.79
2018-09-30	837.17	123.00	33.83
2018-06-30	840.24	149.71	36.39
2018-03-31	825.10	149.00	38.67
2017-12-31	816.83	120.99	39.25
2017-09-30	781.39	93.88	38.91
2017-06-30	824.25	119.39	37.21
2017-03-31	815.19	117.72	37.26
2016-12-31	774.78	100.09	35.00
2016-09-30	747.14	-54.60	34.55
2016-06-30	672.91	-164.42	30.02
2016-03-31	654.84	-205.54	27.53
2015-12-31	674.69	-226.65	29.97
2015-09-30	674.82	-620.45	29.09
2015-06-30	693.68	-573.65	31.30
2015-03-31	720.33	-571.80	32.03
2014-12-31	751.94	-545.59	31.13
2014-09-30	781.21	-312.50	28.01
2014-06-30	816.50	-278.09	27.35
2014-03-31	791.23	-459.16	29.52
2013-12-31	824.50	-445.85	33.07
2013-09-30	879.48	-183.42	43.91
2013-06-30	917.77	-174.99	50.13
2013-03-31	942.79	48.47	57.02
2012-12-31	928.59	78.20	57.54
2012-09-30	893.62	204.74	56.37
2012-06-30	862.34	234.51	57.36
2012-03-31	893.61	310.22	51.99

*GAAP earnings excluding extraordinary items.

Performance last year

We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.

Pan American Silver has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Pan American Silver used its assets less efficiently than the CA Metals and Mining industry average last year based on Return on Assets.
Pan American Silver has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).

Past performance checks

We assess Pan American Silver's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Pan American Silver has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PAAS Health

How is Pan American Silver's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Pan American Silver's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

Pan American Silver is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Pan American Silver's cash and other short term assets cover its long term commitments.

Balance sheet

This treemap shows a more detailed breakdown of Pan American Silver's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

High level of physical assets or inventory.
Debt is covered by short term assets, assets are 20x debt.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.

Raw Data

All data from Pan American Silver Company Filings, last reported 2 months ago.

TSX:PAAS Past Debt and Equity Data
Date (Data in USD Millions)	Total Equity	Total Debt	Cash & Short Term Investments
2018-12-31	1,513.35	27.46	212.51
2018-09-30	1,581.60	29.23	252.66
2018-06-30	1,595.81	30.49	250.25
2018-03-31	1,563.70	30.81	224.84
2017-12-31	1,521.05	31.35	227.54
2017-09-30	1,471.97	28.31	186.28
2017-06-30	1,457.99	67.53	198.19
2017-03-31	1,426.07	64.56	205.42
2016-12-31	1,399.00	64.09	217.61
2016-09-30	1,379.10	67.82	245.27
2016-06-30	1,335.15	79.60	204.19
2016-03-31	1,300.26	80.32	177.62
2015-12-31	1,298.62	80.56	226.64
2015-09-30	1,441.29	78.66	266.09
2015-06-30	1,516.50	82.64	274.91
2015-03-31	1,531.34	86.11	292.45
2014-12-31	1,569.94	81.22	330.41
2014-09-30	2,113.11	78.06	377.49
2014-06-30	2,152.35	68.72	381.64
2014-03-31	2,176.83	80.50	394.38
2013-12-31	2,188.79	85.34	422.72
2013-09-30	2,499.21	84.53	421.35
2013-06-30	2,503.97	87.79	441.17
2013-03-31	2,711.24	73.33	491.44
2012-12-31	2,717.57	98.77	542.32
2012-09-30	2,774.19	104.34	547.96
2012-06-30	2,761.13	96.72	519.76
2012-03-31	2,752.02	104.97	594.21

Pan American Silver's level of debt (1.8%) compared to net worth is satisfactory (less than 40%).
The level of debt compared to net worth has been reduced over the past 5 years (3.9% vs 1.8% today).
Debt is well covered by operating cash flow (564.3%, greater than 20% of total debt).
Interest payments on debt are well covered by earnings (EBIT is 6.3x coverage).

Show me more healthy companies in the Metals and Mining industry

Financial health checks

We assess Pan American Silver's financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)

Full details on the Health part of the Simply Wall St company analysis model.

PAAS Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.

Annual Dividend Income

1.06%

Current annual income from Pan American Silver dividends. Estimated to be 1.31% next year.

If you bought CA$2,000 of Pan American Silver shares you are expected to receive CA$21 in your first year as a dividend.

Dividend Amount

Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?

Pan American Silver's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.02%).
Pan American Silver's dividend is below the markets top 25% of dividend payers in Canada (5.61%).

Annualized Historical and Future Dividends

It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.

Raw Data

TSX:PAAS Annualized Past and Future Dividends
Data Point	Source	Value
Past Annualized Dividend Yield	S&P Global Market Data	See Below
Past Dividends per Share	Company Filings/ Annualized Dividend Payments	See Below
Future Dividends per Share Estimates	Average of up to 5 Analyst Estimates (S&P Global)	See Below
Canada Metals and Mining Industry Average Dividend Yield	Market Cap Weighted Average of 28 Stocks	1.2%
Canada Market Average Dividend Yield	Market Cap Weighted Average of 330 Stocks	3.5%
Canada Minimum Threshold Dividend Yield	10th Percentile	1.1%
Canada Bottom 25% Dividend Yield	25th Percentile	2%
Canada Top 25% Dividend Yield	75th Percentile	5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:PAAS Future Dividends Estimate Data
Date (Data in $)	Dividend per Share (annual)	Avg. No. Analysts
2023-12-31	0.20	1.00
2022-12-31	0.17	2.00
2021-12-31	0.16	3.00
2020-12-31	0.19	6.00
2019-12-31	0.15	5.00

TSX:PAAS Past Annualized Dividends Data
Date (Data in $)	Dividend per share (annual)	Avg. Yield (%)
2019-02-20	0.140	1.055
2018-11-06	0.140	0.994
2018-08-08	0.140	0.920
2018-05-09	0.140	0.808
2018-02-21	0.140	0.874
2017-11-08	0.100	0.641
2017-03-22	0.100	0.582
2017-02-15	0.100	0.572
2016-11-15	0.050	0.289
2016-11-14	0.050	0.323
2016-08-11	0.050	0.289
2016-02-18	0.050	0.368
2015-11-12	0.200	2.912
2015-08-14	0.200	2.846
2015-05-11	0.200	2.467
2015-03-26	0.500	5.357
2015-02-19	0.500	5.333
2014-08-13	0.500	4.581
2014-05-08	0.500	3.560
2014-02-19	0.500	3.690
2013-11-14	0.500	4.266
2013-08-14	0.500	4.460
2013-05-14	0.500	4.143
2013-02-21	0.500	3.422
2013-02-20	0.500	3.110
2012-11-08	0.200	1.089
2012-08-15	0.200	1.007
2012-08-14	0.200	1.305
2012-05-16	0.150	0.934
2012-02-23	0.150	0.738
2011-11-09	0.100	0.422
2011-08-11	0.100	0.337
2011-05-19	0.100	0.321
2011-02-16	0.100	0.275
2010-11-09	0.100	0.273
2010-11-08	0.100	0.277
2010-08-11	0.050	0.179
2010-02-16	0.050	0.206

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Pan American Silver is not paying a notable dividend for Canada, therefore no need to check if the payments are stable.
Pan American Silver is not paying a notable dividend for Canada, therefore no need to check if the payments are increasing.

Current Payout to shareholders

What portion of Pan American Silver's earnings are paid to the shareholders as a dividend.

No need to calculate the sustainability of Pan American Silver's dividends as it is not paying a notable one for Canada.

Future Payout to shareholders

Dividends after 3 years are expected to be well covered by earnings (6.6x coverage).

Income/ dividend checks

We assess Pan American Silver's dividend by checking for:

Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
How sustainable is the dividend, can Pan American Silver afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

Full details on the Dividends part of the Simply Wall St company analysis model.

PAAS Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.

CEO

Michael Steinmann

COMPENSATION	$3,487,500
AGE	52
TENURE AS CEO	3.2 years

CEO Bio

Mr. Michael Steinmann, Ph.D., P.Geo., has been the President of Pan American Silver Corp. since February 18, 2015 and has been its Chief Executive Officer since January 1, 2016. Mr. Steinmann served as Executive Vice President of Corporate Development & Geology at Pan American Silver Corp. since September 01, 2008. He was responsible for business development, project evaluation and all aspects of geology and exploration. Mr. Steinmann is a Geologist with over 20 years of experience in the exploration and mining industry. He has worked on exploration projects, mine evaluations and in underground and open pit mines throughout South America, the USA, Europe and Asia for companies like Rio Tinto and Glencore. He served as Senior Vice President, Geology and Exploration of Pan American Silver Corp., from November 2005 to August 2008. Mr. Steinmann has extensive experience throughout South America in mine operations, project development and corporate M&A having participated in numerous mine construction projects from exploration and feasibility studies, through start-up and into continuous operation. He was involved in several capital market transactions including placements of equity and debt and played a pivotal role in the successful acquisition of Aquiline Resources Inc. (Navidad project) and Minefinders Corporation Ltd. (Dolores mine), as well as in numerous other exploration and business development initiatives. He served as Vice President- Geology-Operations and Projects of Pan American Silver Corp. since March 15, 2004 and Manager of Geology for Glencore, South American operations and projects from 2000 to 2004. He has been Director at Lumina Gold Corp. since July 2014. He has been Director of Esperanza Resources Corp since February 2013, Pan American Silver Corp. since January 01, 2016 and Odin Mining & Exploration Ltd., since July 22, 2014. Mr. Steinmann holds a Ph.D. in Natural Science (Geology) from the Swiss Federal Institute of Technology and an M.Sc. in Geology from the University of Zurich on Regional Geology and Tectonics of Southern Ecuador. He holds a Degree in Corporate Finance from Escuela Superior de Administracio´n y Negocios, Lima.

CEO Compensation

Michael's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Michael's remuneration is about average for companies of similar size in Canada.

Management Team Tenure

Average tenure and age of the Pan American Silver management team in years:

3.6

Average Tenure

Average Age

The tenure for the Pan American Silver management team is about average.

Management Team

Ross Beaty

TITLE

Founder & Chairman

COMPENSATION

$275K

AGE

66

Michael Steinmann

56

TENURE

3.6 yrs

Martin Wafforn

TITLE

Senior Vice President of Technical Services & Process Optimization

TENURE

2.6 yrs

Siren Fisekci

TITLE

Vice President of Investor Relations & Corporate Communications

Christopher Lemon

TITLE

General Counsel

TENURE

1.6 yrs

Board of Directors Tenure

Average tenure and age of the Pan American Silver board of directors in years:

4.9

Average Tenure

Average Age

The tenure for the Pan American Silver board of directors is about average.

TITLE

Director

AGE

63

TENURE

0.1 yrs

Chuck Jeannes

TITLE

Director

AGE

60

TENURE

0.1 yrs

Who owns this company?

Recent Insider Trading

More shares have been bought than sold by Pan American Silver insiders in the past 3 months.

Show me more companies with insider buying in the Metals and Mining industry

Recent Insider Transactions

Announced	Type	Name	Entity	Role		Start	End	Shares	Max Price (CA$)	Value (CA$)
01. Mar 19	Buy	Michael Carroll	Individual			27. Feb 19	01. Mar 19	10,000	CA$18.20	CA$175,550

Management checks

We assess Pan American Silver's management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PAAS News

Simply Wall St News

Pan American Silver (TSE:PAAS) Shareholders Booked A 23% Gain In The Last Three Years

Many high growth companies focus on growing revenue before profits, but if revenue is the focus, it really needs to grow. … That's because it's hard for shareholders to have confidence a company will grow profits significantly if it isn't growing revenue. … If it can become profitable, then even moderate revenue growth could grow profits quickly.

Simply Wall St - 4 days ago – Full article

Is Pan American Silver Corp. (TSE:PAAS) A Smart Choice For Dividend Investors?

Does Pan American Silver tick all the boxes of a great dividend stock? … Check out our latest analysis for Pan American Silver … 5 questions to ask before buying a dividend stock

Simply Wall St - 2 weeks ago – Full article

Is Pan American Silver Corp.’s (TSE:PAAS) 7.6% ROCE Any Good?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St - 1 month ago – Full article

Is Pan American Silver Corp.'s (TSE:PAAS) CEO Paid At A Competitive Rate?

Michael Steinmann became the CEO of Pan American Silver Corp. … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Michael Steinmann's Compensation Compare With Similar Sized Companies?

Simply Wall St - 1 month ago – Full article

Intrinsic Calculation For Pan American Silver Corp. (TSE:PAAS) Shows Investors Are Overpaying

(TSE:PAAS) from its intrinsic value? … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St - 2 months ago – Full article

All You Need To Know About Pan American Silver Corp.'s (TSE:PAAS) Financial Health

Mid-caps stocks, like Pan American Silver Corp. … Don’t forget that this is a general and concentrated examination of Pan American Silver's financial health, so you should conduct further analysis. … View our latest analysis for Pan American Silver

Simply Wall St - 2 months ago – Full article

Pan American Silver Corp (TSE:PAAS) Delivered A Weaker ROE Than Its Industry

By way of learning-by-doing, we'll look at ROE to gain a better understanding Pan American Silver Corp (TSE:PAAS). … Pan American Silver has a ROE of 7.9%, based on the last twelve months. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St - 3 months ago – Full article

Is Pan American Silver Corp (TSE:PAAS) A Strong Dividend Stock?

Historically, Pan American Silver Corp (TSE:PAAS) has paid a dividend to shareholders. … Let's take a look at Pan American Silver in more detail. … See our latest analysis for Pan American Silver

Simply Wall St - 3 months ago – Full article

Don't Sell Pan American Silver Corp (TSE:PAAS) Before You Read This

Pan American Silver has a P/E ratio of 15.77, based on the last twelve months. … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) … P/E of 15.77 = $15.41 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $0.98

Simply Wall St - 4 months ago – Full article

Could The Pan American Silver Corp (TSE:PAAS) Ownership Structure Tell Us Something Useful?

The big shareholder groups in Pan American Silver Corp (TSE:PAAS) have power over the company. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that used to be publicly owned tend to have lower insider ownership.

Simply Wall St - 4 months ago – Full article

PAAS Company Info

Description

Pan American Silver Corp., together with its subsidiaries, engages in exploration, extraction, processing, refining, and reclamation of silver mines. The company owns and operates silver mines located in Peru, Mexico, Argentina, and Bolivia. It also produces and sells gold, zinc, lead, and copper. The company holds interests in the La Colorada, Dolores, Alamo Dorado, Huaron, Morococha, Manantial Espejo, and San Vicente mines. Pan American Silver Corp. was founded in 1979 and is headquartered in Vancouver, Canada.

Details

Name:	Pan American Silver Corp.
Ticker:	PAAS
Exchange:	TSX
Founded:	1979
Market Cap:	CA$3,690,306,370
Shares outstanding:	209,438,500
Website:	http://www.panamericansilver.com
Address:	Pan American Silver Corp. 625 Howe Street, Suite 1440, Vancouver, British Columbia, V6C 2T6, Canada

Listings

Exchange Symbol	Ticker Symbol	Security	Exchange	Country	Currency	Listed on
TSX	PAAS	Common Shares	The Toronto Stock Exchange	CA	CAD	15. Sep 1982
NasdaqGS	PAAS	Common Shares	Nasdaq Global Select	US	USD	15. Sep 1982
DB	PA2	Common Shares	Deutsche Boerse AG	DE	EUR	15. Sep 1982
LSE	0R07	Common Shares	London Stock Exchange	GB	CAD	15. Sep 1982
SWX	PAA	Common Shares	SIX Swiss Exchange	CH	CHF	15. Sep 1982

Number of employees

Current staff

4,530

Pan American Silver employees.

Industry

Industry:	Silver
Sector:	Materials

Company Analysis and Financial Data Status

Area	Date (UTC time)
Company Analysis updated:	2019/03/20 23:43
End of day share price update:	2019/03/20 00:00
Last estimates confirmation:	2019/03/19
Last earnings filing:	2019/03/12
Last earnings reported:	2018/12/31
Last annual earnings reported:	2018/12/31

All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.

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