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A-Mark Precious Metals (AMRK)
NASDAQ:AMRK
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A-Mark Precious Metals
(NASDAQ:AMRK)
Rating:68Neutral
Price Target:
$24.50
▲(8.94%Upside)
Positive Factors
Management Strength
The event reinforced analyst's conviction in management's ability to generate profits from interest in precious metals without requiring an increase in value.
Strategic M&A
Strategic M&A efforts enable the company to generate higher highs and higher lows when it comes to earnings per share (EPS).
Negative Factors
Market Conditions
Low price volatility in precious metals has resulted in smaller spreads and lower earnings for A-Mark Precious Metals.
Market Environment
The current tight-spread environment is challenging for A-Mark Precious Metals, as it navigates uncharted waters with gold prices setting new highs.
A-Mark Precious Metals (AMRK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$553.56M
Dividend Yield3.56%
Average Volume (3M)236.25K
Price to Earnings (P/E)15.1
Beta (1Y)0.67
Revenue Growth5.48%
EPS Growth-54.25%
CountryUS
Employees482
SectorFinancial
Sector Strength73
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)-0.36
Shares Outstanding24,624,737
10 Day Avg. Volume193,746
30 Day Avg. Volume236,253
Financial Highlights & Ratios
PEG Ratio-0.52
Price to Book (P/B)0.83
Price to Sales (P/S)0.00
P/FCF Ratio3.45
Enterprise Value/Market Cap2.37
Enterprise Value/Revenue0.03
Enterprise Value/Gross Profit7.76
Enterprise Value/Ebitda3.00
Forecast
1Y Price Target
$41.25Price Target Upside83.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
A-Mark Precious Metals Business Overview & Revenue Model
Company DescriptionA-Mark Precious Metals, Inc. (AMRK) is a leading full-service precious metals trading company based in the United States. The company operates in the precious metals sector, offering a wide range of products and services that include trading gold, silver, platinum, and palladium. A-Mark caters to a diverse clientele, including mints, retailers, financial institutions, and investors, providing them with access to precious metal bullion, coins, and bars. In addition to trading, A-Mark offers storage, logistics, and financing services to support the various needs of its clients.
How the Company Makes MoneyA-Mark Precious Metals makes money through multiple revenue streams centered around the trading and distribution of precious metals. The primary source of revenue is the trading of bullion, coins, and bars, where the company earns a margin on the buying and selling of these metals. Additionally, A-Mark generates income through its financing services, providing secured loans to customers using precious metals as collateral. The company also earns fees from its storage and logistics services, where clients can securely store their precious metals in A-Mark's facilities. Strategic partnerships and relationships with mints and other industry players enhance A-Mark's ability to source and distribute a wide array of products, further contributing to its revenue.
A-Mark Precious Metals Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q3-2025)
| % Change Since: -5.82%|
Next Earnings Date:Aug 28, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth and strategic acquisitions, which strengthen A-Mark's market position. However, these positives were offset by a net loss, a substantial decrease in EBITDA, and increased operating expenses. While the company has shown strong growth potential and customer acquisition, the financial challenges indicate a mixed overall performance.Q3-2025 Updates
Positive Updates
Revenue Growth
Revenues for fiscal Q3 2025 increased by 15% to $3 billion from $2.6 billion in the same quarter of the previous year. For the nine-month period, revenues increased by 18% to $8.5 billion from $7.2 billion in the same period last year.
Strategic Acquisitions
A-Mark completed three strategic acquisitions: Pinehurst Coin Exchange, Spectrum Group International, and AMS Holding, LLC. These acquisitions are expected to strengthen competitive positioning and expand into higher-margin luxury segments.
Increased Gross Profit
Gross profit for fiscal Q3 2025 increased by 18% to $41 million from $34.8 million in Q3 of last year, driven by higher gross profits from the DTC segment.
Customer Growth in DTC Segment
The number of new customers in the DTC segment increased significantly, with 899,600 new customers in Q3 fiscal 2025, up 1489% from the previous year.
Improved Inventory Turn Ratio
The inventory turn ratio for fiscal Q3 2025 was 2.4, a 4% increase from 2.3 in Q3 of the previous year.
Negative Updates
Net Loss
Net loss attributable to the company for Q3 fiscal 2025 totaled $8.5 million, compared to net income of $5 million in the same quarter last year.
Decrease in EBITDA
EBITDA for Q3 totaled $1.3 million, a decrease of 90% compared to $12.6 million in the same quarter last year.
Decrease in Gold and Silver Sales
Sales of gold for Q3 fiscal 2025 were down 3% from the previous year, and sales of silver were down 39% from Q3 of the previous year.
Increased SG&A Expenses
SG&A expenses for Q3 fiscal 2025 increased by 46% to $33.4 million from $22.9 million in Q3 of the previous year.
Increased Interest Expense
Interest expense for Q3 fiscal 2025 increased by 31% to $13 million from $9.9 million in the same quarter of the previous year.
Company Guidance
During A-Mark's fiscal third quarter 2025 conference call, the company reported a 15% increase in revenue to $3 billion, up from $2.6 billion the previous year. Despite market challenges, such as decreased liquidity and increased interest expenses, A-Mark achieved a gross profit of $41 million and a non-GAAP adjusted net income of $5.7 million. The company completed three strategic acquisitions: Pinehurst Coin Exchange, Spectrum Group International, and AMS Holding, LLC, enhancing its market position and expanding into higher-margin segments. A-Mark also reported significant growth in its DTC segment, contributing 19% of consolidated revenue, and noted a substantial increase in new customers, largely driven by its acquisitions. Operating metrics showed a decrease in gold and silver ounces sold, but the DTC segment's customer base grew by 64%, and average order value increased by 45%. As the company navigates the market conditions, it remains focused on integrating acquisitions, optimizing operations, and leveraging its expanded brand portfolio for long-term growth.A-Mark Precious Metals Financial Statement Overview
Summary
A-Mark Precious Metals exhibits strong revenue and cash flow growth, indicating solid market demand and effective cash management. However, declining profit margins and high leverage pose financial risks, suggesting the need for cautious management.Income Statement
A-Mark Precious Metals shows strong revenue growth with a 13.33% increase in TTM revenue compared to the previous annual period. However, the declining gross profit margin from earlier periods is a concern, dropping from 3.17% in 2021 to 1.54% TTM. EBIT and EBITDA margins have also decreased, reflecting reduced operational efficiency. Despite these challenges, the company maintains a positive net profit margin of 0.35% TTM.72
Positive
Balance Sheet
The balance sheet indicates a relatively high debt-to-equity ratio of 1.36, suggesting significant leverage. However, the company has improved its stockholders' equity over time, now comprising 29.48% of total assets. The return on equity is 5.89% TTM, which is lower than previous periods, reflecting decreased profitability on equity use.65
Positive
Cash Flow
A-Mark Precious Metals demonstrates strong cash flow management, with a substantial increase in free cash flow TTM by 256.69% compared to the previous year. This is supported by a robust operating cash flow, resulting in a healthy operating cash flow to net income ratio of 4.55. The free cash flow to net income ratio stands at 4.25, indicating efficient cash conversion.78
Positive
| Breakdown | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.70B | 9.29B | 8.16B | 7.61B | 5.46B |
| Gross Profit | 173.25M | 294.67M | 261.76M | 210.20M | 66.97M |
| EBITDA | 133.71M | 209.67M | 185.15M | 223.45M | 59.64M |
| Net Income | 68.55M | 156.36M | 132.54M | 159.64M | 30.51M |
Balance Sheet | |||||
| Total Assets | 1.83B | 1.55B | 1.44B | 1.19B | 758.03M |
| Cash, Cash Equivalents and Short-Term Investments | 48.64M | 39.32M | 37.78M | 101.41M | 52.33M |
| Total Debt | 775.11M | 670.58M | 315.05M | 283.54M | 306.00M |
| Total Liabilities | 1.17B | 945.18M | 952.19M | 827.64M | 653.14M |
| Stockholders Equity | 607.63M | 599.12M | 488.61M | 362.62M | 101.00M |
Cash Flow | |||||
| Free Cash Flow | 45.16M | -40.11M | -92.05M | -54.77M | 46.95M |
| Operating Cash Flow | 60.93M | -30.32M | -89.17M | -52.65M | 47.94M |
| Investing Cash Flow | -63.60M | 6.84M | -60.56M | -130.39M | 48.77M |
| Financing Cash Flow | 11.98M | 25.02M | 86.11M | 232.13M | -52.70M |
A-Mark Precious Metals Technical Analysis
Negative
22.49
Price Trends
21.68
Positive
23.62
Negative
27.69
Negative
Market Momentum
0.43
Negative
51.44
Neutral
40.87
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMRK, the sentiment is Negative. The current price of 22.49 is above the 20-day moving average (MA) of 22.26, above the 50-day MA of 21.68, and below the 200-day MA of 27.69, indicating a neutral trend. The MACD of 0.43 indicates Negative momentum. The RSI at 51.44 is Neutral, neither overbought nor oversold. The STOCH value of 40.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMRK.
A-Mark Precious Metals Risk Analysis
A-Mark Precious Metals disclosed 49 risk factors in its most recent earnings report. A-Mark Precious Metals reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
A-Mark Precious Metals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $694.88M | 9.86 | 9.10% | 1.08% | 12.68% | 81.40% | |
68 Neutral | $553.56M | 15.12 | 5.81% | 3.56% | 5.48% | -54.25% | |
67 Neutral | $16.64B | 11.61 | 9.79% | 3.78% | 11.89% | -8.13% | |
67 Neutral | $143.46M | 8.34 | 21.85% | ― | 21.85% | 111.42% | |
67 Neutral | $144.17M | 535.54 | 0.33% | 3.90% | 0.52% | -96.93% | |
59 Neutral | $2.00B | ― | -18.49% | ― | -0.65% | -808.88% | |
45 Neutral | $93.53M | ― | -6.66% | 4.12% | -36.67% | -1568.10% |
* Financial Sector Average
Performance Comparison
AMRK
A-Mark Precious Metals
22.49
-13.43
-37.39%
SRL
Scully Royalty
6.31
-0.88
-12.24%
OPY
Oppenheimer Holdings
67.71
15.67
30.11%
SIEB
Siebert Financial
3.80
2.04
115.91%
WHG
Westwood Holdings Group
15.99
3.67
29.79%
CIFR
Cipher Mining
6.27
0.27
4.50%
A-Mark Precious Metals Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
A-Mark Precious Metals Announces CFO Resignation
Neutral
Apr 15, 2025
On April 10, 2025, A-Mark Precious Metals announced the resignation of Kathleen Simpson-Taylor as Chief Financial Officer, effective June 30, 2025, due to her retirement. The company appointed Cary Dickson as Executive Vice President, who will assume the CFO role on July 1, 2025. Dickson has a rich history with A-Mark and extensive experience in financial leadership roles across various industries. Additionally, A-Mark entered into new employment agreements with President Thor Gjerdrum and COO Brian Aquilino, effective July 1, 2025, with terms including base salaries, incentive opportunities, and stock awards, reflecting the company’s strategic focus on leadership stability and performance-driven growth.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.