Fortuna Silver Mines Inc (FSM, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $1.13 billion. The current price of FSM's stock is $3.67, reflecting a significant 16.45% gain over the past week and a 23.78% gain over the past three months. According to the GF Value, the stock is currently modestly undervalued with a GF Value of $4.22, down slightly from the past GF Value of $4.27. This valuation suggests that FSM's stock could have room to grow, maintaining its status as modestly undervalued both currently and in the past valuation.
Introduction to Fortuna Silver Mines Inc
Fortuna Silver Mines Inc operates within the Metals & Mining industry, focusing on precious and base metal mining across several countries. The company boasts a diverse portfolio of mines, including the Lindero gold mine in Argentina, the Yaramoko mine in Burkina Faso, the San Jose mine in Mexico, the Caylloma mine in Peru, and the Seguela gold mine currently under development in Cote d'Ivoire. Fortuna Silver Mines generates revenue through the sale of concentrate and dore, derived from its mining operations.
Assessing Profitability
Fortuna Silver Mines Inc's Profitability Rank stands at a strong 7/10, indicating a robust position within its industry. The company's operating margin is an impressive 13.37%, which is higher than 75.29% of its industry peers. Despite a negative Return on Equity (ROE) of -8.66%, FSM still outperforms 63.7% of its competitors. Similarly, its Return on Assets (ROA) of -5.67% is better than 68.2% of industry peers. The Return on Invested Capital (ROIC) is 5.66%, placing FSM ahead of 89.45% of its competitors. Over the past decade, FSM has maintained profitability for 7 years, surpassing 78.16% of its industry counterparts.
Growth Trajectory of Fortuna Silver Mines
The company's Growth Rank is a solid 6/10. FSM's 3-year revenue growth rate per share stands at 15.60%, outperforming 59.6% of its industry peers. The 5-year revenue growth rate per share is also positive at 8.60%, better than 52.9% of the industry. Looking ahead, the estimated total revenue growth rate for the next 3 to 5 years is an impressive 23.40%, which is higher than 94.51% of its competitors. However, the 3-year EPS without NRI growth rate is -29.50%, and the 5-year rate is -19.50%, indicating some challenges in earnings growth despite being better than 17.07% and 10.65% of industry peers, respectively.
Notable Shareholders in Fortuna Silver Mines
Among the notable holders of FSM stock, Jim Simons (Trades, Portfolio) leads with 2,024,400 shares, representing a 0.66% share percentage. Following him is Joel Greenblatt (Trades, Portfolio), holding 56,176 shares, which translates to a 0.02% stake in the company. These positions reflect the confidence of major investors in the potential of FSM.
Competitive Landscape
When compared to its competitors, Fortuna Silver Mines Inc holds a strong position. Torex Gold Resources Inc (TSX:TXG, Financial) has a market cap of $804.177 million, Allied Gold Corp (TSX:AAUC, Financial) is valued at $717.989 million, and K92 Mining Inc (TSX:KNT, Financial) stands at $894.693 million. FSM's larger market cap suggests a more significant presence in the industry relative to these competitors.
Conclusion
In summary, Fortuna Silver Mines Inc's stock performance has been robust, with a notable increase in price over the past quarter. The company's valuation indicates it is modestly undervalued, presenting potential for future growth. FSM's profitability and growth prospects are strong, with a solid profitability rank and promising revenue growth rates. The positions of major holders like Jim Simons (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) underscore the confidence in FSM's future. Finally, when compared to its competitors, FSM's larger market cap suggests a commanding industry presence, positioning it well for continued success.
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.
