tiprankstipranks
Trending News
More News >
A-Mark Precious Metals (AMRK)
NASDAQ:AMRK
Advertisement

A-Mark Precious Metals (AMRK) AI Stock Analysis

Compare
306 Followers

Top Page

AMRK

A-Mark Precious Metals

(NASDAQ:AMRK)

Rating:68Neutral
Price Target:
$24.00
▲(4.48% Upside)
A-Mark Precious Metals shows robust revenue and cash flow growth, complemented by strategic acquisitions. However, financial challenges such as declining profit margins, increased expenses, and a net loss dampen the outlook. The valuation remains reasonable, and technical indicators show mixed signals.
Positive Factors
M&A Strategy
Strategic M&A efforts enable the company to generate higher highs and higher lows when it comes to earnings per share (EPS).
Operational Efficiency
Automation efforts are driving efficiency in the company's operations.
Valuation
Shares of A-Mark Precious Metals trade at a multiple below the peer average, suggesting potential value for investors.
Negative Factors
Market Conditions
Low price volatility in precious metals has resulted in smaller spreads and lower earnings for A-Mark Precious Metals.
Spread 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)

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: |
Next Earnings Date:Sep 09, 2025
Earnings Call Sentiment Neutral
The earnings call presented mixed results for A-Mark Precious Metals. While the company achieved significant revenue growth and expanded its customer base through strategic acquisitions, it faced challenges such as a net loss, increased interest expenses, and decreased sales of precious metals. Despite these challenges, the company remains optimistic about its long-term growth trajectory and operational efficiencies.
Q3-2025 Updates
Positive Updates
Revenue Growth
Revenues for fiscal Q3 2025 increased 15% to $3 billion from $2.6 billion in the same year-ago quarter. For the nine-month period, revenues increased 18% to $8.5 billion from $7.2 billion.
Strategic Acquisitions
A-Mark completed three strategic acquisitions: Pinehurst Coin Exchange, Spectrum Group International, and AMS Holding, LLC, strengthening its competitive position and expanding into higher-margin luxury segments.
Increased Customer Base
The number of new customers in the DTC segment increased by 1489% from Q3 of last year, with the total number of customers reaching approximately 4.1 million, a 64% increase from the prior year.
Operational Efficiencies
Investments in automation technology in Las Vegas are expected to process higher volumes while reducing operational costs. The facility can handle 50% to 75% more packages without adding more employees.
Negative Updates
Decreased Gross Profit
Gross profit for the nine-month period decreased 1% to $129.3 million, due to lower gross profits from the Wholesale Sales & Ancillary Services segment.
Increased Interest Expense
Interest expense for fiscal Q3 2025 increased 31% to $13 million due to higher product financing arrangements and liabilities on borrowed metals.
Decreased Precious Metal Sales
Gold sales decreased by 3% and silver sales decreased by 39% in Q3 fiscal 2025 compared to the previous year.
Net Loss
Net loss attributable to the company for the third quarter of fiscal 2025 totaled $8.5 million compared to net income of $5 million in Q3 of last year.
Company Guidance
During A-Mark Precious Metals' fiscal Q3 2025 call, CEO Greg Roberts highlighted the company's resilience amid volatile market conditions, reporting a 15% revenue increase to $3 billion, despite challenges such as trading losses and higher interest expenses. Gross profit rose 18% to $41 million, while non-GAAP adjusted net income and EBITDA were $5.7 million and $1.3 million, respectively. The company completed strategic acquisitions, including Pinehurst Coin Exchange and Spectrum Group International, enhancing its market position and expanding into luxury segments. This quarter saw a 1489% surge in new DTC customers, attributed largely to recent acquisitions. A-Mark's inventory turn ratio improved by 4% year-over-year, and the average order value in the DTC segment increased by 45%. Despite a net loss of $8.5 million, A-Mark's balance sheet remained strong, with cash reserves of $114.3 million and a tangible net worth of $315.7 million. The company maintained a $0.20 per share dividend and is optimistic about continued growth and shareholder value.

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
72
Positive
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.
Balance Sheet
65
Positive
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.
Cash Flow
78
Positive
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue9.70B9.29B8.16B7.61B5.46B
Gross Profit173.25M294.67M261.76M210.20M66.97M
EBITDA133.71M209.67M185.15M223.45M59.64M
Net Income68.55M156.36M132.54M159.64M30.51M
Balance Sheet
Total Assets1.83B1.55B1.44B1.19B758.03M
Cash, Cash Equivalents and Short-Term Investments48.64M39.32M37.78M101.41M52.33M
Total Debt775.11M670.58M315.05M283.54M306.00M
Total Liabilities1.17B945.18M952.19M827.64M653.14M
Stockholders Equity607.63M599.12M488.61M362.62M101.00M
Cash Flow
Free Cash Flow45.16M-40.11M-92.05M-54.77M46.95M
Operating Cash Flow60.93M-30.32M-89.17M-52.65M47.94M
Investing Cash Flow-63.60M6.84M-60.56M-130.39M48.77M
Financing Cash Flow11.98M25.02M86.11M232.13M-52.70M

A-Mark Precious Metals Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price22.97
Price Trends
50DMA
22.33
Positive
100DMA
22.14
Positive
200DMA
24.73
Negative
Market Momentum
MACD
0.33
Positive
RSI
52.04
Neutral
STOCH
35.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMRK, the sentiment is Neutral. The current price of 22.97 is above the 20-day moving average (MA) of 22.72, above the 50-day MA of 22.33, and below the 200-day MA of 24.73, indicating a neutral trend. The MACD of 0.33 indicates Positive momentum. The RSI at 52.04 is Neutral, neither overbought nor oversold. The STOCH value of 35.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$170.48M43.433.06%3.34%0.24%-49.87%
70
Outperform
$743.11M9.2110.25%1.01%13.84%42.61%
68
Neutral
$17.89B12.0310.28%3.73%9.80%1.66%
68
Neutral
$576.96M15.765.81%3.48%6.41%-54.25%
62
Neutral
$117.04M11.6211.37%9.24%-2.06%
54
Neutral
$2.80B-21.39%0.11%-914.42%
49
Neutral
$82.86M-6.66%5.01%-36.67%-1568.10%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AMRK
A-Mark Precious Metals
22.97
-11.69
-33.73%
SRL
Scully Royalty
5.19
-2.82
-35.21%
OPY
Oppenheimer Holdings
71.55
19.49
37.44%
SIEB
Siebert Financial
2.76
1.06
62.35%
WHG
Westwood Holdings Group
17.99
5.56
44.73%
CIFR
Cipher Mining
7.02
3.43
95.54%

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.Date of analysis: Jul 25, 2025