First Majestic Silver Corp (AG, Financial) has experienced a notable surge in its stock price, capturing the attention of investors and market analysts alike. Over the past week, the company's stock price has seen a significant gain of 22.94%, while the past three months have witnessed a 23.50% increase. This impressive performance has brought the stock to a current price of $6.94, with a market capitalization of $2 billion. The recent price movement has aligned the stock with the GF Value of $6.75, suggesting that First Majestic Silver Corp is now fairly valued, a shift from its previous status three months ago when it was considered modestly undervalued.
Introduction to First Majestic Silver Corp
First Majestic Silver Corp, operating within the metals & mining industry, is primarily focused on the production, development, exploration, and acquisition of mineral properties, with an emphasis on silver and gold in North America. The company boasts three producing mines in Mexico: the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, and the La Encantada Silver Mine. These assets form the core of First Majestic's operations and contribute to its standing in the market.
Assessing Profitability
Despite the recent stock price rally, First Majestic Silver Corp's Profitability Rank stands at 4/10. The company's operating margin is currently at -9.85%, which, while negative, is better than 37.91% of its peers in the industry. In terms of return on equity (ROE), the company's -10.00% is surprisingly better than 60.39% of the industry. Similarly, its return on assets (ROA) at -6.79% and return on invested capital (ROIC) at -2.28% are better than 66.59% and 78.7% of the industry, respectively. Over the past decade, First Majestic has managed to achieve profitability in two years, which is better than 50.29% of the industry.
Growth Prospects
First Majestic's Growth Rank is also positioned at 4/10. The company has demonstrated a 3-year revenue growth rate per share of 8.00%, outperforming 42.69% of the industry. Its 5-year revenue growth rate per share stands at 6.50%, which is better than 46.3% of its peers. However, the estimated total revenue growth rate for the next 3 to 5 years is projected at -10.97%, which, while negative, still ranks better than 6.71% of the industry.
Notable Shareholders
Among the notable shareholders of First Majestic Silver Corp are Steven Cohen (Trades, Portfolio), holding 412,000 shares, which translates to a 0.14% share percentage, and Joel Greenblatt (Trades, Portfolio), with 22,181 shares, representing a 0.01% stake in the company. The presence of these prominent investors may offer a layer of confidence to potential and current shareholders.
Competitive Landscape
When compared to its closest competitors, First Majestic Silver Corp stands out with its $2 billion market cap. Aya Gold & Silver Inc (TSX:AYA, Financial) has a market cap of $1.11 billion, MAG Silver Corp (TSX:MAG, Financial) is valued at $1.18 billion, and Silvercorp Metals Inc (TSX:SVM, Financial) has a market cap of $624.403 million. These figures highlight First Majestic's significant presence in the metals and mining sector.
Conclusion
In conclusion, First Majestic Silver Corp's recent stock performance has been impressive, with a 24% rally over the past three months. The company is now considered fairly valued according to the GF Value. Despite some challenges in profitability, the company's financial metrics are favorable when compared to industry averages. Growth prospects show a mixed picture, with solid historical growth but a cautious future outlook. The involvement of notable shareholders and the company's standing among competitors further contribute to the overall analysis of First Majestic Silver Corp as a potential investment in the metals and mining industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
