First Majestic Silver Corp (NYSE: AG)

Sector: Basic Materials Industry: Silver CIK: 0001308648
Market Cap 10.52 Bn
P/B 4.04
P/E 153.93
P/S 10.89
ROIC (Qtr) 3.23
Div Yield % 0.09
Rev 1y % (Qtr) 95.13
Total Debt (Qtr) 237.17 Mn
Debt/Equity (Qtr) 0.09
Add ratio to table...

About

Investment thesis

Bull case

  • Strong operating cash flow of 339.77M provides robust 1.43x coverage of total debt 237.17M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 435.36M provide 30.25x coverage of short-term debt 14.39M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 339.77M provides exceptional 11.86x coverage of interest expenses 28.66M, showing strong debt service capability.
  • Operating cash flow of 339.77M provides strong 27.21x coverage of stock compensation 12.49M, indicating sustainable incentive practices.
  • Strong tangible asset base of 4.24B provides 17.86x coverage of total debt 237.17M, indicating robust asset backing and low credit risk.

Bear case

  • Operating cash flow of 339.77M barely covers its investment activities of (34.16M), with a coverage ratio of -9.95, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 339.77M provides thin coverage of dividend payments of (8.74M) with a -38.89 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of 158.20M show weak coverage of depreciation charges of 227.07M, with a 0.70 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 227.07M relative to operating cash flow of 339.77M, which is 0.67x suggests significant maintenance capital requirements affecting free cash flow.
  • Free cash flow of 151.94M represents just -8.18x of debt issuance (18.58M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Silver
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AG First Majestic Silver Corp 10.52 Bn 153.93 10.89 237.17 Mn
2 EXK Endeavour Silver Corp 3.21 Bn -34.06 9.53 159.06 Mn
3 SVM Silvercorp Metals Inc 2.27 Bn -135.06 6.20 114.90 Mn
4 DVS Dolly Varden Silver Corp 0.31 Bn -21.75 0.00 0.00 Mn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.45 1.80
EV to Cash from Ops. EV/CFO 30.51 27.24
EV to Debt EV to Debt 43.70 20.51
EV to EBIT EV/EBIT 65.52 22.85
EV to EBITDA EV/EBITDA 26.26 24.18
EV to Free Cash Flow [EV/FCF] EV/FCF 68.22 14.26
EV to Market Cap EV to Market Cap 0.99 0.73
EV to Revenue EV/Rev 10.73 6.52
Price to Book Value [P/B] P/B 4.04 4.37
Price to Earnings [P/E] P/E 153.93 -9.24
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 7.82 1.19
Dividend Payout Ratio % Div Payout % (Qtr) 11.10 -1.45
Dividend per Basic Share Div per Share (Qtr) 0.02 0.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 4.82 1.73
Interest Coverage Int. cover (Qtr) 5.52 -4.62
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -61.87 -24.28
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 181.36 54.83
Dividend Growth (1y) % Div 1y % (Qtr) -16.67 -16.17
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 342.50 -7.74
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 271.06 92.05
EBIT Growth (1y) % EBIT 1y % (Qtr) 822.38 105.18
EBT Growth (1y) % EBT 1y % (Qtr) 360.29 -9.56
EPS Growth (1y) % EPS 1y % (Qtr) 151.85 -30.70
FCF Growth (1y) % FCF 1y % (Qtr) 688.91 240.58
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 323.09 97.27
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.23 0.21
Cash Payout Ratio Cash Payout (Qtr) 0.02 0.01
Cash Ratio Cash Ratio (Qtr) 1.91 1.90
Current Ratio Curr Ratio (Qtr) 3.38 2.50
Debt to Equity Ratio Debt/Equity (Qtr) 0.09 0.14
Interest Cover Ratio Int Coverage (Qtr) 5.52 -4.62
Times Interest Earned Times Interest Earned (Qtr) 5.52 -4.62
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 39.90 12.78
EBIT Margin % EBIT Margin % (Qtr) 16.38 0.28
EBT Margin % EBT Margin % (Qtr) 13.42 -1.58
Gross Margin % Gross Margin % (Qtr) 27.00 23.05
Net Profit Margin % Net Margin % (Qtr) 7.10 -6.38