Long-established in the Metals & Mining industry, First Majestic Silver Corp (AG, Financial) has enjoyed a stellar reputation. However, it has recently witnessed a daily loss of 2.24%, juxtaposed with a three-month change of -11.37%. Fresh insights from the GF Score hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of First Majestic Silver Corp.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 6/10
- Profitability rank: 4/10
- Growth rank: 5/10
- GF Value rank: 8/10
- Momentum rank: 2/10
Based on the above method, GuruFocus assigned First Majestic Silver Corp the GF Score of 68 out of 100, which signals poor future outperformance potential.
First Majestic Silver Corp: A Snapshot
First Majestic Silver Corp, with a market cap of $1.46 billion, is engaged in the production, development, exploration, and acquisition of mineral properties with a focus on silver and gold production in North America. It owns four producing mines, three mines in Mexico consisting of the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, the La Encantada Silver Mine and the Jerritt Canyon Gold Mine in Nevada. The company's sales stand at $614.18 million, but it has an operating margin of -14.28%, indicating potential profitability issues.
Profitability Concerns
First Majestic Silver Corp's low Profitability rank of 4/10 can raise warning signals. This rank reflects the company's ability to generate profits and return them to shareholders. A low profitability rank often indicates issues with the company's earnings power, which could impact its future performance.
Conclusion
Considering the company's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential underperformance. While First Majestic Silver Corp has a strong history in the Metals & Mining industry, its recent performance and future prospects according to the GF Score suggest that it may struggle to maintain its past success. Investors should consider these factors when making investment decisions.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
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.
