PAAS Intrinsic Value – PAN AMERICAN SILVER Reports Third Quarter FY2023 Earnings Results
November 21, 2023
🌥️Earnings Overview
On September 30 2023, PAN AMERICAN SILVER ($NYSE:PAAS) announced its earnings results for the third quarter of FY2023. The company achieved total revenue of USD 616.3 million, representing a surge of 81.9% compared to the same period of the previous year. Net income for the quarter was USD -21.8 million, an improvement from the previous year’s loss of -71.5 million.
Price History
The stock opened at $15.1 and closed at $15.0, representing a decrease of 1.5% from the previous closing price of $15.2. The company attributed the decrease in net income to higher costs associated with production and exploration activities, as well as further declining prices of silver and zinc during the quarter. Despite these headwinds, PAN AMERICAN SILVER was able to maintain a strong balance sheet with a healthy cash position and low debt levels.
Overall, PAN AMERICAN SILVER had a solid third quarter performance despite the challenges posed by the current economic conditions. With continued improvements to its operations and strategic investments, the company is well-positioned for long-term growth and success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for PAAS. More…
| Total Revenues | Net Income | Net Margin |
| 2.02k | -224.95 | -5.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for PAAS. More…
| Operations | Investing | Financing |
| 170.81 | 400.3 | -369.03 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for PAAS. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.53k | 2.63k | 13.3 |
Key Ratios Snapshot
Some of the financial key ratios for PAAS are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.5% | -28.2% | -7.2% |
| FCF Margin | ROE | ROA |
| -8.0% | -1.9% | -1.2% |
Analysis – PAAS Intrinsic Value
At GoodWhale, we have conducted an analysis of the fundamentals of PAN AMERICAN SILVER. After careful consideration, our proprietary Valuation Line has calculated the fair value of its stock to be around $15.8. However, PAN AMERICAN SILVER is currently trading at $15.0, which is a fair price that is undervalued by 5.3%. We believe this presents a compelling opportunity to purchase a quality stock at a discounted price. More…
Summary
PAN AMERICAN SILVER reported strong third-quarter results for FY2023 with total revenue of USD 616.3 million, a year-over-year growth of 81.9%. Net income for the quarter was -21.8 million, a decrease from -71.5 million the year prior. The company has a long track record of increasing shareholder value through dividend payouts and share repurchases, making it an attractive option for investors. Furthermore, PAN AMERICAN SILVER is well-positioned to benefit from an eventual economic recovery, with its operations in Latin America uniquely positioned in a region that is expected to grow quickly in the coming years.
