Fortuna Silver Mines Inc Stock Analysis:
Analysts rate Fortuna Silver Mines Inc. with a consensus Buy rating and a 12-month average target price of $5.73 per share.
Based on the Fortuna Silver Mines Inc stock forecasts from 6 analysts, the average analyst target price for Fortuna Silver Mines Inc is CAD 5.73 over the next 12 months. Fortuna Silver Mines Inc’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Fortuna Silver Mines Inc is Slightly Bullish , which is based on 7 positive signals and 4 negative signals. At the last closing, Fortuna Silver Mines Inc’s stock price was CAD 3.46. Fortuna Silver Mines Inc’s stock price has changed by +19.31% over the past week, +16.11% over the past month and -30.10% over the last year.
What we like:
Underpriced compared to book value
The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.
Superior capital utilization
The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.
Superior return on assets
The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.
Positive cash flow
The company had positive total cash flow in the most recent four quarters.
Positive free cash flow
The company had positive total free cash flow in the most recent four quarters.
Superior Earnings Growth
This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.
Superior Revenue Growth
This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.
What we don’t like:
Poor risk adjusted returns
This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.
The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.
Below median dividend returns
The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.
The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.