SVMSilvercorp Metals Inc.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.8×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
Margin-driven, fat margins on slower asset turns. ROE 8% = 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 SVM?
Silvercorp Metals Inc. earns 39% 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% · 30 points above what the capital costs: growth creates value
- Operating margin
- 35%
Operating margin · Basic Materials median 9.9% · fiscal year to FY2025
- Cash conversion
- 1.79×
Cash conversion · 2.02× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +15%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 33% |
| FY2021 | 37% |
| FY2022 | 29% |
| FY2023 | 16% |
| FY2024 | 30% |
| FY2025 | 35% |
Details›
- Gross marginfiscal year to FY2025
- 41%
- Operating marginfiscal year to FY2025
- 35%
- Net marginfiscal year to FY2025
- 19%
- Free cash flow margin
- 44%
- Revenue, trailing twelve months
- $299M
- Free cash flow, trailing twelve months
- $132M
- Net income, trailing twelve months
- $58M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 39%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.