A-Mark Precious Metals (NasdaqGS:AMRK) - Share price, News & Analysis

AMRK fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	3/6
Financial Health	4/6
Dividends	0/6

AMRK Stock Overview

A-Mark Precious Metals, Inc., together with its subsidiaries, operates as a precious metals trading company.

Rewards

Trading at 54.5% below our estimate of its fair value

Earnings grew by 15.6% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 8.8% per year for the next 3 years

Debt is not well covered by operating cash flow

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year

A-Mark Precious Metals Competitors

Price History & Performance

Summary of all time highs, changes and price drops for A-Mark Precious Metals
Historical stock prices
Current Share Price	US$63.24
52 Week High	US$89.19
52 Week Low	US$42.20
Beta	-0.44
1 Month Change	-22.76%
3 Month Change	-10.32%
1 Year Change	14.71%
3 Year Change	386.46%
5 Year Change	295.25%
Change since IPO	375.49%

Recent News & Updates

Apr 27

If The World Falls Apart, A-Mark Precious Metals Will Shine

A-Mark has proven one of the top performers in the precious metals bull run since 2019. Rising investor/collector interest during the pandemic in physical gold and silver bullion/coins has driven remarkable, positive results for this online-focused dealer. A new 24/7 precious metals trading platform for consumers is interesting and could drive company sales, income and cash flow to new heights, if metals continue climbing in price. Assuming further gains in gold/silver/platinum/palladium, A-Mark shares remain incredibly undervalued.

Shareholder Returns

	AMRK	US Diversified Financial	US Market
7D	-0.5%	-1.7%	-2.7%
1Y	14.7%	4.2%	-12.9%

Return vs Industry: AMRK exceeded the US Diversified Financial industry which returned 4.2% over the past year.

Return vs Market: AMRK exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is AMRK's price volatile compared to industry and market?
AMRK volatility
AMRK Average Weekly Movement	7.7%
Diversified Financial Industry Average Movement	7.0%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: AMRK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: AMRK's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1965	347	Greg Roberts	https://www.amark.com

A-Mark Precious Metals, Inc., together with its subsidiaries, operates as a precious metals trading company. It operates in three segments: Wholesale Sales & Ancillary Services, Direct-to-Consumer, and Secured Lending. The Wholesale Sales & Ancillary Services segment sells gold, silver, platinum, and palladium in the form of bars, plates, powders, wafers, grains, ingots, and coins.

A-Mark Precious Metals Fundamentals Summary

How do A-Mark Precious Metals's earnings and revenue compare to its market cap?
AMRK fundamental statistics
Market Cap	US$728.15m
Earnings (TTM)	US$146.21m
Revenue (TTM)	US$8.25b

5.0x

P/E Ratio

0.1x

P/S Ratio

Is AMRK overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AMRK income statement (TTM)
Revenue	US$8.25b
Cost of Revenue	US$7.97b
Gross Profit	US$281.15m
Other Expenses	US$134.94m
Earnings	US$146.21m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	12.70
Gross Margin	3.41%
Net Profit Margin	1.77%
Debt/Equity Ratio	138.9%

How did AMRK perform over the long term?

See historical performance and comparison

Valuation

Is A-Mark Precious Metals undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AMRK ($63.24) is trading below our estimate of fair value ($138.97)

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

Price To Earnings Ratio

PE vs Industry: AMRK is good value based on its PE Ratio (5x) compared to the US Diversified Financial industry average (7.5x).

PE vs Market: AMRK is good value based on its PE Ratio (5x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: AMRK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: AMRK is overvalued based on its PB Ratio (1.6x) compared to the US Diversified Financial industry average (0.9x).

Future Growth

How is A-Mark Precious Metals forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-8.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMRK's earnings are forecast to decline over the next 3 years (-8.8% per year).

Earnings vs Market: AMRK's earnings are forecast to decline over the next 3 years (-8.8% per year).

High Growth Earnings: AMRK's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AMRK's revenue (5.4% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: AMRK's revenue (5.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if AMRK's Return on Equity is forecast to be high in 3 years time

Past Performance

How has A-Mark Precious Metals performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

75.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AMRK has high quality earnings.

Growing Profit Margin: AMRK's current net profit margins (1.8%) are lower than last year (1.8%).

Past Earnings Growth Analysis

Earnings Trend: AMRK's earnings have grown significantly by 75.9% per year over the past 5 years.

Accelerating Growth: AMRK's earnings growth over the past year (15.6%) is below its 5-year average (75.9% per year).

Earnings vs Industry: AMRK earnings growth over the past year (15.6%) exceeded the Diversified Financial industry -3.7%.

Return on Equity

High ROE: Whilst AMRK's Return on Equity (33.07%) is high, this metric is skewed due to their high level of debt.

Financial Health

How is A-Mark Precious Metals's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: AMRK's short term assets ($1.1B) exceed its short term liabilities ($788.0M).

Long Term Liabilities: AMRK's short term assets ($1.1B) exceed its long term liabilities ($115.1M).

Debt to Equity History and Analysis

Debt Level: AMRK's net debt to equity ratio (132.5%) is considered high.

Reducing Debt: AMRK's debt to equity ratio has reduced from 520.5% to 138.9% over the past 5 years.

Debt Coverage: AMRK's debt is not well covered by operating cash flow (4.4%).

Interest Coverage: AMRK's interest payments on its debt are well covered by EBIT (1283.4x coverage).

Balance Sheet

Dividend

What is A-Mark Precious Metals's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate AMRK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AMRK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AMRK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AMRK's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: AMRK is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AMRK has not reported any payouts.

Discover strong dividend paying companies

Management

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

4.5yrs

Average management tenure

CEO

Greg Roberts (59 yo)

16.83yrs

Tenure

US$1,951,844

Compensation

Mr. Gregory N. Roberts, also known as Greg, has been the Chief Executive Officer of A-Mark Precious Metals, Inc. since July 2005. Mr. Roberts has been the Chief Executive Officer and President of Spectrum...

CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD1.95M) is below average for companies of similar size in the US market ($USD3.94M).

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

Leadership Team

Experienced Management: AMRK's management team is considered experienced (4.5 years average tenure).

Board Members

Experienced Board: AMRK's board of directors are considered experienced (7.7 years average tenure).

Ownership

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

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.4%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30