AGFirst Majestic Silver Corp.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (2.5×).
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 7% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is AG?
First Majestic Silver Corp. earns 13% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 3.6 points above what the capital costs: growth creates value
- Operating margin
- 32%
Operating margin · Basic Materials median 9.9% · fiscal year to FY2025
- Cash conversion
- 2.48×
Cash conversion · operating cash flow covers the operating profit after tax
- Share count, year on year
- +64%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 11% |
| FY2021 | 8.4% |
| FY2022 | −6.3% |
| FY2023 | −31% |
| FY2024 | −0.67% |
| FY2025 | 32% |
Details›
- Gross marginfiscal year to FY2025
- 57%
- Operating marginfiscal year to FY2025
- 32%
- Net marginfiscal year to FY2025
- 17%
- Free cash flow margin
- 37%
- Revenue, trailing twelve months
- $1.26B
- Free cash flow, trailing twelve months
- $464M
- Net income, trailing twelve months
- $211M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 13%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.