Over the past week, Coeur Mining Inc (CDE, Financial) has experienced a modest uptick in its stock price, with a 1.77% gain, reflecting a positive short-term sentiment among investors. However, the broader picture over the past three months shows a significant 28.57% loss in stock value, indicating potential concerns or volatility in the market's perception of the company. Currently, the market capitalization of Coeur Mining Inc stands at approximately $1.1 billion, with a stock price of $2.88. According to GuruFocus's valuation metrics, the stock is considered fairly valued with a GF Value of $3.04, down from a past GF Value of $3.68. This suggests that the stock's previous valuation as a possible value trap has shifted to a more neutral assessment, advising investors to think twice before making investment decisions.
Introduction to Coeur Mining Inc
Coeur Mining Inc, operating within the Metals & Mining industry, is a precious minerals mining company with a focus on gold and silver. The company's key operations span across the Americas, with significant mines and projects located in the United States, Canada, and Mexico. Coeur Mining Inc's primary revenue streams are derived from its Palmarejo, Rochester, Wharf, and Kensington mines, which are all situated in North America. The company's strategic positioning in these regions allows it to capitalize on the rich mineral deposits and favorable mining conditions.
Assessing Coeur Mining's Profitability
When evaluating Coeur Mining's profitability, the company's Profitability Rank stands at a low 3 out of 10, as of September 30, 2023. The company's operating margin is currently at -3.55%, which, despite being negative, fares better than 40.31% of 851 companies in the industry. The ROE (Return on Equity) is also in the negative territory at -3.09%, yet it surpasses 74.19% of 2,476 companies. Similarly, the ROA (Return on Assets) at -1.50% is better than 78.23% of 2,683 companies, and the ROIC (Return on Invested Capital) at -16.76% is more favorable than 50.51% of 2,651 companies. Over the past decade, Coeur Mining has managed to achieve profitability in only 2 years, which is still better than 51.16% of 1,202 companies in the same sector.
Growth Prospects of Coeur Mining
The company's Growth Rank is also quite low at 2 out of 10. Coeur Mining's 3-year and 5-year revenue growth rates per share both stand at -4.20%, which are better than 19.02% and 18.57% of companies in the industry, respectively. However, the company's future looks somewhat brighter, with a Total Revenue Growth Rate (Future 3Y To 5Y Est) estimated at 6.79%, outperforming 62.82% of 156 companies. The 3-year EPS without NRI (Net Rental Income) growth rate is at -8.60%, which is still better than 31.55% of 1,743 companies.
Notable Shareholders in Coeur Mining
First Eagle Investment (Trades, Portfolio) is the leading shareholder in Coeur Mining, holding 1,857,513 shares, which translates to a 0.49% stake in the company. Following closely is renowned investor Jim Simons (Trades, Portfolio), with 294,095 shares, amounting to a 0.08% share percentage. Paul Tudor Jones (Trades, Portfolio) also shows confidence in Coeur Mining, holding 165,194 shares, representing a 0.04% stake. The presence of these significant holders indicates a level of confidence in the stock's potential.
Competitive Landscape
When compared to its competitors, Coeur Mining Inc holds a substantial market capitalization of $1.1 billion, which is higher than Seabridge Gold Inc (SA, Financial) with a market cap of $947.620 million, Caledonia Mining Corp PLC (CMCL, Financial) at $214.523 million, and Dakota Gold Corp (DC, Financial) at $183.889 million. This suggests that Coeur Mining has a stronger market presence and possibly a more robust financial foundation than its closest competitors.
Conclusion
In summary, Coeur Mining Inc's recent stock performance has been a mixed bag, with short-term gains overshadowed by a significant three-month loss. The company's valuation has shifted from being potentially overvalued to fairly valued, according to the GF Value. While profitability remains a challenge, with negative margins and returns, the company's long-term growth prospects show some promise. The confidence shown by significant holders and the company's competitive market position may offer some reassurance to investors. However, given the current financial metrics and industry rankings, potential investors should approach Coeur Mining with caution and conduct thorough due diligence.
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.
