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NEW YORK (TheStreet) -- First Majestic Silver(AG) - Get Report has been downgraded by TheStreet Ratings from Hold to Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate FIRST MAJESTIC SILVER CORP (AG) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, FIRST MAJESTIC SILVER CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- This stock's share value has moved by only 54.57% over the past year. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- FIRST MAJESTIC SILVER CORP has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, FIRST MAJESTIC SILVER CORP swung to a loss, reporting -$0.33 versus $0.78 in the prior year.
- 36.16% is the gross profit margin for FIRST MAJESTIC SILVER CORP which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 11.34% trails the industry average.
- Net operating cash flow has slightly increased to $27.51 million or 6.30% when compared to the same quarter last year. In addition, FIRST MAJESTIC SILVER CORP has also vastly surpassed the industry average cash flow growth rate of -55.48%.
- You can view the full analysis from the report here: AG Ratings Report