Last Updated: 19 Sep 2024
Executive Summary
Pan American Silver Corp. (PAAS) is a leading primary silver producer with a diversified portfolio of mines in Latin America. The company has a strong financial position, with a market capitalization of $7.4 billion and an EBITDA of $588.7 million. Despite facing headwinds in the precious metals market, PAAS has maintained a stable dividend yield of 0.0196.
Company Overview
Pan American Silver Corp. is headquartered in Vancouver, Canada. The company operates mines in Mexico, Peru, Bolivia, and Argentina. PAAS produces silver, gold, copper, lead, and zinc. The company's largest mine is the La Colorada mine in Mexico, which accounts for approximately 40% of its silver production.
Fundamental Analysis
PAAS has a strong financial position, with a debt-to-equity ratio of 0.25 and a current ratio of 1.4. The company's revenue has been relatively stable in recent years, with a slight decline in 2023 due to lower silver prices. PAAS's operating margin has also been stable, averaging around 11.5% over the past five years.
The company's earnings per share (EPS) have been volatile in recent years, due to fluctuations in silver prices. PAAS reported a loss per share of $0.41 in 2023, primarily due to lower silver prices and higher costs.
Technical Analysis
PAAS's stock price has been trending lower in recent months, due to the decline in silver prices. The stock is currently trading at $20.42, below its 50-day moving average of $21.04 and its 200-day moving average of $17.88. The stock's relative strength index (RSI) is currently at 35, indicating that it is oversold.
Short Term Outlook
In the short term, PAAS's stock price is likely to remain under pressure due to the weak precious metals market. However, the company's strong financial position and stable dividend yield could provide some support for the stock.
Long Term Outlook
In the long term, PAAS's prospects are tied to the price of silver. If silver prices recover, the company's stock price is likely to rise. However, if silver prices remain low, PAAS's stock price is likely to continue to struggle.
Analyst Recommendations
Analysts are generally positive on PAAS's long-term prospects. The consensus analyst rating is "buy," with an average target price of $32.04.
