Company Overview
First Majestic Silver Corp. operates within the basic materials sector as a primary producer of silver and gold, engaging in the acquisition, exploration, development, and production of mineral properties specifically within North America. The company maintains a significant operational footprint, with its portfolio including the San Dimas silver/gold mine, which covers an area of approximately 71,867 hectares located in North America. In terms of market capitalization, the enterprise is valued at $10.20B, reflecting a substantial scale within the precious metals industry, while its annual revenue stands at $1.26B over the trailing twelve months. Although the specific count of employees is not disclosed in the available data, the combination of a $10.20B market cap and $1.26B in revenue positions the entity as a major player capable of sustaining large-scale mining operations and exploration activities across its North American holdings.
Financial Health
The company generated $1.26B in revenue and reported a net income of $164.92M, resulting in an EBITDA of $610.82M, which highlights a significant operational scale before interest, taxes, depreciation, and amortization. The substantial gap between the $1.26B revenue and the $164.92M net income indicates a cost structure that includes substantial deductions for taxes, interest expenses, depreciation, and amortization, leaving a net profit margin of 13.1%. Free cash flow reached $503.16M, demonstrating strong operational efficiency and providing the financial flexibility necessary to fund capital expenditures for mine development or acquisitions without relying heavily on external financing. The gross margin stands at 55.2%, indicating that the company retains more than half of its revenue after direct production costs, while the operating margin of 49.0% suggests efficient control over general and administrative expenses. The profit margin of 13.1% further reflects the impact of overhead and tax obligations on the final bottom line. On the balance sheet, the company holds $973.82M in cash against $308.74M in debt, supported by a debt-to-equity ratio of 9.73, which suggests a leveraged capital structure typical for capital-intensive mining sectors. The current ratio of 2.60 indicates a robust short-term liquidity position, as current assets are more than twice the value of current liabilities, ensuring the ability to meet immediate obligations. Return on equity is 9.3% and return on assets is 6.9%, metrics that reveal the effectiveness of management in generating profits from shareholder equity and the total asset base, respectively.
Valuation Assessment
The trailing twelve-month P/E ratio is 60.82, while the forward P/E is 16.92, implying that the market expects earnings to grow significantly in the coming year to justify the lower forward multiple. The price-to-book ratio is 3.68, indicating that the stock trades at a substantial premium over its book value, which often reflects the high value of mineral reserves not fully captured on the balance sheet. Alternative valuation metrics such as the price-to-sales ratio of 8.11 and an EV/EBITDA of 16.28 suggest that the market values the company based on its sales potential and cash-generating ability rather than solely on current earnings. The 52-week high is $32.04 and the 52-week low is $5.19, providing a wide trading range that encompasses the current valuation context. The beta of 1.97 indicates that the stock exhibits high volatility, moving nearly twice as much as the broader market, which is consistent with the cyclical nature of the silver and gold sectors.
Growth & Income
Revenue growth over the last year was 169.2%, while earnings growth is not available in the provided data, making a direct comparison between revenue and earnings acceleration impossible at this specific moment. The dividend yield is 0.1% with a payout ratio of 5.9%, indicating that the company distributes a very small portion of its earnings to shareholders. Given the low payout ratio and the nature of the mining business, the company likely retains the majority of its cash flow to reinvest into exploration projects and mine expansion rather than paying substantial dividends. The overall growth and income profile is characterized by exceptional recent revenue expansion and a conservative approach to shareholder returns, prioritizing capital deployment for asset growth over current income generation.