Fortuna Mining Corp. (NYSE: FSM)

Sector: Basic Materials Industry: Gold CIK: 0001341335
Market Cap 3.23 Bn
P/B 1.99
P/E 13.68
P/S 3.01
ROIC (Qtr) 18.52
Div Yield % 0.00
Rev 1y % (Qtr) 38.31
Total Debt (Qtr) 213.42 Mn
Debt/Equity (Qtr) 0.13

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 565.28M provides robust 2.65x coverage of total debt 213.42M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 438.28M provide 20.49x coverage of short-term debt 21.39M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 565.28M provides exceptional 18.18x coverage of minority interest expenses 31.09M, showing strong core operations.
  • Operating cash flow of 565.28M provides exceptional 35.82x coverage of interest expenses 15.78M, showing strong debt service capability.
  • Operating cash flow of 565.28M provides strong 30.99x coverage of stock compensation 18.24M, indicating sustainable incentive practices.

Bear case

  • Operating cash flow of 565.28M barely covers its investment activities of (115.95M), with a coverage ratio of -4.88, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating earnings of 365.54M show weak coverage of depreciation charges of 225.65M, with a 1.62 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 565.28M barely covers operating expenses of (25.65M) with a -22.04 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Free cash flow of 368.24M represents just -13.81x of debt issuance (26.67M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 565.28M is outpaced by equity issuance of (34.76M) (-16.26 ratio), indicating concerning reliance on equity markets for funding operations.

Products and services [axis] Breakdown of Revenue (2024)

Major customers [axis] Breakdown of Revenue (2024)

Peer comparison

Companies in the Gold
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NEM NEWMONT Corp /DE/ 121.63 Bn 16.92 5.66 5.65 Bn
2 AEM Agnico Eagle Mines Ltd 96.06 Bn 27.86 9.09 0.34 Bn
3 B Barrick Mining Corp 82.76 Bn 23.10 5.67 4.71 Bn
4 WPM Wheaton Precious Metals Corp. 56.61 Bn 56.52 30.93 0.01 Bn
5 FNV FRANCO NEVADA Corp 44.11 Bn 47.96 28.52 0.00 Bn
6 KGC Kinross Gold Corp 38.43 Bn 21.85 5.96 1.24 Bn
7 PAAS Pan American Silver Corp 19.78 Bn 31.19 6.08 0.86 Bn
8 AGI Alamos Gold Inc 17.45 Bn 32.41 10.85 0.28 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.37 3.17
EV to Cash from Ops. EV/CFO 5.43 -11.55
EV to Debt EV to Debt 14.37 548.67
EV to EBIT EV/EBIT 8.39 12.24
EV to EBITDA EV/EBITDA 4.95 3.14
EV to Free Cash Flow [EV/FCF] EV/FCF 8.33 12.17
EV to Market Cap EV to Market Cap 0.95 1.72
EV to Revenue EV/Rev 2.86 7.50
Price to Book Value [P/B] P/B 1.99 5.26
Price to Earnings [P/E] P/E 13.68 -1.39
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1.54
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.40
Dividend per Basic Share Div per Share (Qtr) 0.00 0.17
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 10.25
Interest Coverage Int. cover (Qtr) 23.17 406.21
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -12.10 -97.36
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 142.75 130.91
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -5.27
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 1,666.25 518.35
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 128.85 53.19
EBIT Growth (1y) % EBIT 1y % (Qtr) 469.29 679.30
EBT Growth (1y) % EBT 1y % (Qtr) 819.95 144.05
EPS Growth (1y) % EPS 1y % (Qtr) 971.43 224.62
FCF Growth (1y) % FCF 1y % (Qtr) 163.18 171.65
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 93.51 84.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.48 0.26
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 2.23 3.14
Current Ratio Curr Ratio (Qtr) 3.30 4.90
Debt to Equity Ratio Debt/Equity (Qtr) 0.13 0.27
Interest Cover Ratio Int Coverage (Qtr) 23.17 406.21
Times Interest Earned Times Interest Earned (Qtr) 23.17 406.21
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 55.00 -19.19
EBIT Margin % EBIT Margin % (Qtr) 34.03 -44.57
EBT Margin % EBT Margin % (Qtr) 32.56 -34.79
Gross Margin % Gross Margin % (Qtr) 42.90 30.59
Net Profit Margin % Net Margin % (Qtr) 22.00 -40.44