NEW YORK (TheStreet) -- First Majestic Silver (NYSE:AG) has been downgraded by TheStreet Ratings from hold to sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself. Highlights from the ratings report include:

  • AG's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 30.56%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, AG is still more expensive than most of the other companies in its industry.
  • FIRST MAJESTIC SILVER CORP's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, FIRST MAJESTIC SILVER CORP increased its bottom line by earning $0.98 versus $0.14 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Metals & Mining industry average. The net income increased by 10.4% when compared to the same quarter one year prior, going from $23.87 million to $26.36 million.
  • AG's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.60, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for FIRST MAJESTIC SILVER CORP is currently very high, coming in at 71.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 45.60% significantly outperformed against the industry average.
. First Majestic Silver Corp. engages in the acquisition, development, and exploration of mineral properties with a focus on silver projects in Mexico. The company has a P/E ratio of 14.5, below the average metals & mining industry P/E ratio of 14.6 and below the S&P 500 P/E ratio of 17.7. First Majestic has a market cap of $1.48 billion and is part of the basic materials sector and metals & mining industry. Shares are down 25.8% year to date as of the close of trading on Wednesday. You can view the full First Majestic Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet Ratings Staff