Fortuna Silver Mines Inc

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FSM : NYSE : Basic Materials
$5.66 | %
Today's Range: 5.64 - 6.12
Avg. Daily Volume: 1486200.0
12/09/16 - 4:02 PM ET

Financial Analysis


FORTUNA SILVER MINES INC's gross profit margin for the third quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. FORTUNA SILVER MINES INC is extremely liquid. Currently, the Quick Ratio is 2.41 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 44.72% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)65.2139.04
EBITDA ($mil)30.7114.42
EBIT ($mil)21.057.61
Net Income ($mil)11.822.59


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)105.28109.88
Total Assets ($mil)543.36398.65
Total Debt ($mil)46.9940.37
Equity ($mil)406.04280.57


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin58.1942.91
EBITDA Margin47.0936.94
Operating Margin32.2819.5
Sales Turnover0.350.39
Return on Assets-0.781.69
Return on Equity-1.052.4
Debt Q3 FY16 Q3 FY15
Current Ratio2.644.78
Debt/Capital0.10.13
Interest Expense0.470.0
Interest Coverage45.280.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)145.83129.08
Div / share0.00.0
EPS0.070.02
Book value / share2.782.17
Institutional Own % n/a n/a
Avg Daily Volume1612577.01378740.0

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Conducting a second comparison, its price-to-book ratio of 2.24 indicates a discount versus the S&P 500 average of 2.79 and a premium versus the industry average of 1.84. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, FORTUNA SILVER MINES INC seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
FSM NM Peers 422.61   FSM 17.15 Peers 10.59

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

FSM's P/E is negative making this valuation measure meaningless.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

FSM is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
FSM NA Peers 27.71   FSM NA Peers 0.96

Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.

Ratio not available.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
FSM 2.24 Peers 1.84   FSM -200.00 Peers -72.11

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

FSM is trading at a premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, FSM is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
FSM 4.80 Peers 2.88   FSM 21.77 Peers -11.17

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

FSM is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

FSM has a sales growth rate that significantly exceeds its peers.

 

 

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