Endeavour Silver Corp (NYSE: EXK)

Sector: Basic Materials Industry: Silver CIK: 0001277866
Market Cap 3.21 Bn
P/B 6.31
P/E -34.06
P/S 9.53
ROIC (Qtr) 0.10
Div Yield % 0.00
Rev 1y % (Qtr) 167.26
Total Debt (Qtr) 159.06 Mn
Debt/Equity (Qtr) 0.31
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About

Investment thesis

Bull case

  • Strong tangible asset base of 1.02B provides 6.39x coverage of total debt 159.06M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 47.13M provides exceptional 15.74x coverage of interest expenses 2.99M, showing strong debt service capability.
  • Operating cash flow of 47.13M provides strong 13.52x coverage of stock compensation 3.48M, indicating sustainable incentive practices.
  • Strong operating cash flow of 47.13M provides 2.32x coverage of SG&A expenses 20.33M, showing efficient operational cost management.
  • Tangible assets of 1.02B provide robust 4.63x coverage of other current liabilities 219.69M, indicating strong asset backing.

Bear case

  • Operating cash flow of 47.13M barely covers its investment activities of (244.27M), with a coverage ratio of -0.19, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (244.27M) provide weak support for R&D spending of 22.84M, which is -10.69x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Free cash flow of (129.08M) provides weak coverage of capital expenditures of 176.21M, with a -0.73 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (78.51M) show weak coverage of depreciation charges of 54.53M, with a -1.44 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (129.08M) represents just -3.14x of debt issuance 41.12M, 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 3.27 1.80
EV to Cash from Ops. EV/CFO 70.47 27.24
EV to Debt EV to Debt 20.88 20.51
EV to EBIT EV/EBIT -42.30 22.85
EV to EBITDA EV/EBITDA 60.26 24.18
EV to Free Cash Flow [EV/FCF] EV/FCF -25.73 14.26
EV to Market Cap EV to Market Cap 1.03 0.73
EV to Revenue EV/Rev 9.85 6.52
Price to Book Value [P/B] P/B 6.31 4.37
Price to Earnings [P/E] P/E -34.06 -9.24
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1.19
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -1.45
Dividend per Basic Share Div per Share (Qtr) 0.00 0.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.73
Interest Coverage Int. cover (Qtr) -26.22 -4.62
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 7.73 -24.28
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 3.81 54.83
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -16.17
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -232.23 -7.74
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 35.96 92.05
EBIT Growth (1y) % EBIT 1y % (Qtr) -330.88 105.18
EBT Growth (1y) % EBT 1y % (Qtr) -315.23 -9.56
EPS Growth (1y) % EPS 1y % (Qtr) -153.85 -30.70
FCF Growth (1y) % FCF 1y % (Qtr) 18.74 240.58
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.71 97.27
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.33 0.21
Cash Payout Ratio Cash Payout Ratio 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.22 1.90
Current Ratio Curr Ratio (Qtr) 0.79 2.50
Debt to Equity Ratio Debt/Equity (Qtr) 0.31 0.14
Interest Cover Ratio Int Coverage (Qtr) -26.22 -4.62
Times Interest Earned Times Interest Earned (Qtr) -26.22 -4.62
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -7.10 12.78
EBIT Margin % EBIT Margin % (Qtr) -23.29 0.28
EBT Margin % EBT Margin % (Qtr) -24.18 -1.58
Gross Margin % Gross Margin % (Qtr) 13.00 23.05
Net Profit Margin % Net Margin % (Qtr) -28.00 -6.38