TSX:PAAS

Stock Analysis Report

Pan American Silver

Executive Summary

Pan American Silver Corp., together with its subsidiaries, engages in the exploration, development, extraction, processing, refining, and reclamation of silver mines.

Snowflake

Fundamentals

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.5%

PAAS

0.5%

CA Metals and Mining

0.2%

CA Market


1 Year Return

4.7%

PAAS

15.0%

CA Metals and Mining

3.5%

CA Market

Return vs Industry: PAAS underperformed the Canadian Metals and Mining industry which returned 15% over the past year.

Return vs Market: PAAS exceeded the Canadian Market which returned 3.5% over the past year.


Shareholder returns

PAASIndustryMarket
7 Day-0.5%0.5%0.2%
30 Day-10.9%-8.9%-3.3%
90 Day0.8%-8.0%-1.9%
1 Year5.8%4.7%15.9%15.0%7.3%3.5%
3 Year0.2%-2.1%-11.6%-13.2%14.7%4.4%
5 Year95.1%81.8%15.4%11.6%26.2%7.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Pan American Silver undervalued compared to its fair value and its price relative to the market?

42.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PAAS (CA$20.82) is trading below our estimate of fair value (CA$35.93)

Significantly Below Fair Value: PAAS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PAAS is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: PAAS is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PAAS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PAAS is overvalued based on its PB Ratio (1.4x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

  • Explore potentially undervalued companies in the Materials industry.

Future Growth

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

75.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PAAS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PAAS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PAAS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PAAS's revenue (10.6% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: PAAS's revenue (10.6% 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 (10.1%).


Next Steps

Past Performance

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

61.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PAAS is unprofitable, but has reduced losses over the past 5 years at a rate of 61.5% per year.

Accelerating Growth: Unable to compare PAAS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PAAS is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-11.9%).


Return on Equity

High ROE: PAAS has a negative Return on Equity (-1.37%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: PAAS is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: PAAS is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Pan American Silver's financial position?


Financial Position Analysis

Short Term Liabilities: PAAS's short term assets ($1.1B) exceeds its short term liabilities ($257.1M)

Long Term Liabilities: PAAS's short term assets (1.1B) exceeds its long term liabilities (746.1M)


Debt to Equity History and Analysis

Debt Level: PAAS's debt to equity ratio (14.7%) is considered satisfactory

Reducing Debt: PAAS's debt to equity ratio has increased from 2.8% to 14.7% over the past 5 years.


Balance Sheet

Inventory Level: PAAS has a high level of physical assets or inventory.

Debt Coverage by Assets: PAAS's debt is covered by short term assets (assets are 3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if PAAS has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PAAS has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

0.88%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%2.0%markettop25%5.9%industryaverage1.3%forecastin3Years1.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PAAS's dividend (0.88%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.98%).

High Dividend: PAAS's dividend (0.88%) is low compared to the top 25% of dividend payers in the Canadian market (5.92%).

Stable Dividend: PAAS is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: PAAS is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: PAAS is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PAAS's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Michael Steinmann (53yo)

3.8yrs

Tenure

US$3,667,500

Compensation

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 Exe ...


CEO Compensation Analysis

Compensation vs. Market: Michael's total compensation ($USD2.80M) is about average for companies of similar size in the Canadian market ($USD2.95M).

Compensation vs Earnings: Michael's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.5yrs

Average Tenure

57yo

Average Age

Experienced Management: PAAS's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

65yo

Average Age

Experienced Board: PAAS's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$1,075,86115 Aug 19
C. McArthur
EntityIndividual
Role
Member of the Board of Directors
Director
Shares47,480
Max PriceUS$22.66
SellUS$200,35111 Jul 19
Matthew Andrews
EntityIndividual
Shares11,668
Max PriceUS$17.17
BuyUS$27,94001 Jun 19
Gillian Winckler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$13.97
BuyUS$2,371,78922 May 19
Ross Beaty
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares170,000
Max PriceUS$13.95
BuyUS$175,55001 Mar 19
Michael Carroll
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$18.20

Ownership Breakdown


Management Team

  • Steve Busby (59yo)

    Chief Operating Officer

    • Tenure: 11.4yrs
    • Compensation: US$1.94m
  • Wayne Vincent (57yo)

    Vice President of Accounting & Operations

    • Tenure: 4.2yrs
  • Andres Dasso

    Senior Vice President of Mining Operations

    • Tenure: 0yrs
    • Compensation: US$1.63m
  • Siren Fisekci

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 0yrs
  • Rob Doyle

    Chief Financial Officer

    • Tenure: 15.8yrs
    • Compensation: US$1.49m
  • Michael Steinmann (53yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$3.67m
  • Martin Wafforn

    Senior Vice President of Technical Services & Process Optimization

    • Tenure: 3.2yrs
  • Christopher Lemon

    General Counsel

    • Tenure: 2.2yrs
  • Sean McAleer

    Senior VP & MD of Guatemala

    • Tenure: 0.6yrs
    • Compensation: US$1.33m
  • Anibal Avendaño

    Vice President of Human Resources

    • Tenure: 0.6yrs

Board Members

  • Chuck Jeannes (61yo)

    Independent Director

    • Tenure: 0.7yrs
  • Walter Segsworth (70yo)

    Lead Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$174.00k
  • Michael Carroll (66yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$180.50k
  • Neil de Gelder (66yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$167.50k
  • Ross Beaty (67yo)

    Independent Chairman

    • Tenure: 0yrs
    • Compensation: US$275.00k
  • Michael Steinmann (53yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$3.67m
  • C. McArthur (64yo)

    Director

    • Tenure: 0.7yrs
  • Gill Winckler (56yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$161.00k

Company Information

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


Key Information

  • Name: Pan American Silver Corp.
  • Ticker: PAAS
  • Exchange: TSX
  • Founded: 1994
  • Industry: Silver
  • Sector: Materials
  • Market Cap: CA$4.361b
  • Shares outstanding: 209.48m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PAASNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDSep 1982
PAASTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1982
PA2DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1982
0R07LSE (London Stock Exchange)YesCommon SharesGBCADSep 1982
PAASWX (SIX Swiss Exchange)YesCommon SharesCHCHFSep 1982

Biography

Pan American Silver Corp., together with its subsidiaries, engages in the exploration, development, extraction, processing, refining, and reclamation of silver mines. The company owns and operates mines lo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:44
End of Day Share Price2019/10/23 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.