First Majestic Silver (AG) AI Stock Analysis

• Market Cap: C$12.21B
• Dividend Yield: 0.12%
• Average Volume (3M): 2.16M
• Price to Earnings (P/E): 145.3
• Beta (1Y): 2.82
• Revenue Growth: 88.70%
• EPS Growth: N/A
• Country: CA
• Employees: 4,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Silver
• EPS (TTM): 0.10
• Shares Outstanding: 491,228,850
• 10 Day Avg. Volume: 1,915,670
• 30 Day Avg. Volume: 2,155,920
• PEG Ratio: 0.60
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 2.95
• P/FCF Ratio: 192.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$20.90
• Price Target Upside: -15.71% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: C$23.00 ▼(-7.26% Downside)

The score is supported by improving TTM profitability and stronger cash generation alongside a low-leverage balance sheet, but is held back by an expensive valuation (P/E ~129) and a multi-year history of earnings/free-cash-flow volatility. Technicals are moderately positive but not strong enough to outweigh the valuation and cyclicality risks.

Positive Factors

Revenue Growth

The significant increase in revenue reflects strong demand and operational efficiency, positioning the company well for sustained growth.

Strong Cash Position

A robust cash position enhances financial stability and provides flexibility for strategic investments and operational resilience.

Successful Integration

Successful integration of new operations can lead to improved efficiencies and synergies, supporting long-term operational success.

Negative Factors

Profitability Challenges

Negative profitability indicates ongoing challenges in cost management and pricing, which could hinder long-term financial performance.

Cost Inflation

Rising costs due to inflation can erode margins and affect profitability, posing a risk to financial stability if not managed effectively.

Energy Disruptions

Operational disruptions from energy issues can lead to production delays and increased costs, impacting overall efficiency and output.

First Majestic Silver Business Overview & Revenue Model

Company Description

First Majestic Silver Corp. engages in the acquisition, exploration, development, and production of mineral properties with a focus on silver and gold production in North America. Its projects include the San Dimas mine covering an area of approximately 71,867 hectares located in Durango State, Mexico; the Santa Elena that covers an area of approximately 102,244 hectares located in Sonora State, México; and the La Encantada covering an area of approximately 4,076 hectares located in Coahuila State, México. The company was formerly known as First Majestic Resource Corp. and changed its name to First Majestic Silver Corp. in November 2006. First Majestic Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.

How the Company Makes Money

First Majestic Silver generates revenue primarily through the sale of silver and other precious metals produced at its mining operations. The company has a diversified revenue model that includes the sales of silver bullion, gold, and by-products like lead and zinc. The price of silver is a significant driver of revenue, as the company sells its output on the open market, where prices can fluctuate based on global demand and supply dynamics. Additionally, First Majestic may enter into hedging contracts to manage price volatility and secure revenue streams. The company also benefits from partnerships and agreements with other mining firms for processing and distribution, further contributing to its earnings. Key factors influencing its revenue include operational efficiency, production levels, metal prices, and the overall economic environment affecting mining operations.

First Majestic Silver Financial Statement Overview

Summary

First Majestic Silver shows strong revenue growth and improved cash flow, with a solid balance sheet and low leverage. However, profitability remains a challenge with a negative net profit margin and return on equity.

Income Statement

First Majestic Silver's income statement shows a positive trajectory with a significant revenue growth rate of 18.2% TTM, indicating strong sales performance. The gross profit margin improved to 22.2% TTM, reflecting better cost management. However, the net profit margin remains negative at -11.7% TTM, suggesting challenges in achieving profitability. The EBIT and EBITDA margins have improved to 6.3% and 29.3% TTM, respectively, indicating better operational efficiency.

Balance Sheet

The balance sheet of First Majestic Silver is relatively strong, with a low debt-to-equity ratio of 0.097 TTM, indicating conservative leverage. The equity ratio is solid, reflecting a strong capital base. However, the return on equity is negative at -5.0% TTM, highlighting challenges in generating returns for shareholders.

Cash Flow

The cash flow statement shows robust growth in free cash flow, with a growth rate of 103.3% TTM, indicating improved cash generation. The operating cash flow to net income ratio is healthy at 1.06 TTM, suggesting efficient cash conversion. However, the free cash flow to net income ratio is relatively low at 0.25 TTM, indicating room for improvement in translating profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	966.22M	533.69M	583.10M	605.64M	574.31M	382.33M
Gross Profit	250.94M	76.92M	16.07M	8.75M	94.90M	116.55M
EBITDA	403.48M	118.13M	-46.92M	92.22M	161.20M	105.54M
Net Income	69.33M	-96.99M	-137.30M	-110.87M	-4.84M	24.26M
Balance Sheet
Total Assets	4.24B	1.98B	1.96B	2.13B	2.10B	1.24B
Cash, Cash Equivalents and Short-Term Investments	575.21M	251.81M	186.61M	187.79M	274.38M	274.34M
Total Debt	236.84M	236.88M	254.67M	250.38M	219.01M	172.93M
Total Liabilities	1.23B	628.34M	613.79M	705.56M	707.30M	386.50M
Stockholders Equity	2.60B	1.35B	1.35B	1.43B	1.40B	848.53M
Cash Flow
Free Cash Flow	161.07M	8.17M	-100.05M	-198.17M	-75.27M	-40.95M
Operating Cash Flow	353.96M	117.76M	48.29M	13.03M	110.52M	79.34M
Investing Cash Flow	-36.69M	-108.68M	-156.50M	-207.43M	-177.72M	-133.56M
Financing Cash Flow	-19.66M	48.72M	74.31M	113.57M	114.19M	126.90M

First Majestic Silver Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AG, the sentiment is Positive. The current price of 24.8 is above the 20-day moving average (MA) of 23.10, above the 50-day MA of 20.01, and above the 200-day MA of 13.93, indicating a bullish trend. The MACD of 1.23 indicates Negative momentum. The RSI at 62.49 is Neutral, neither overbought nor oversold. The STOCH value of 84.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AG.

First Majestic Silver Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAAS	80 Outperform	C$31.17B	30.41	11.27%	0.88%	25.04%	―
FVI	76 Outperform	C$4.27B	12.66	15.63%	―	7.61%	915.74%
SVM	73 Outperform	C$2.75B	77.51	3.54%	0.29%	37.50%	-60.92%
AYA	66 Neutral	C$2.90B	1,232.14	0.71%	―	241.04%	-80.07%
DSV	65 Neutral	C$7.11B	207.92	11.03%	―	―	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AG	59 Neutral	C$12.21B	145.28	3.44%	0.12%	88.70%	―

First Majestic Silver Corporate Events

First Majestic Silver Announces $60M Sale of Del Toro Mine

First Majestic Silver Corp. has entered an agreement to sell its 100%-owned Del Toro Silver Mine in Zacatecas, Mexico, to Sierra Madre Gold & Silver Ltd. for up to $60 million through a combination of cash and shares. This transaction allows First Majestic to streamline its operations while providing Sierra Madre with an opportunity to enhance its asset base through a significant mining project, subject to several conditions including private placement financing and regulatory approvals.

The most recent analyst rating on (TSE:AG) stock is a Hold with a C$23.00 price target. To see the full list of analyst forecasts on First Majestic Silver stock, see the TSE:AG Stock Forecast page.

First Majestic Silver Completes $350 Million Convertible Notes Offering

First Majestic Silver Corp. has successfully completed a US$350 million offering of convertible senior notes, which includes an additional US$50 million from an over-allotment option. The proceeds will partially be used to repurchase existing notes due in 2027, with the remainder allocated for general corporate purposes and strategic opportunities. This financial maneuver aims to optimize the company’s capital structure and support its growth initiatives, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (TSE:AG) stock is a Hold with a C$23.00 price target. To see the full list of analyst forecasts on First Majestic Silver stock, see the TSE:AG Stock Forecast page.

First Majestic Silver Announces Pricing of $300 Million Convertible Notes Offering

First Majestic Silver Corp. has announced the pricing of its offering of unsecured convertible senior notes due 2031, aiming to raise $300 million, with an option to increase to $350 million. The proceeds will be used to repurchase a portion of its existing convertible notes due 2027 and for general corporate purposes, potentially impacting its financial flexibility and strategic positioning.

The most recent analyst rating on (TSE:AG) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on First Majestic Silver stock, see the TSE:AG Stock Forecast page.

First Majestic Silver Announces $300 Million Convertible Notes Offering

First Majestic Silver Corp. has announced an offering of $300 million in unsecured convertible senior notes due 2031, with an option for initial purchasers to buy an additional $45 million. The proceeds will be used to repurchase existing notes due 2027 and for general corporate purposes. This strategic financial move aims to strengthen the company’s financial position and support its ongoing operations and growth opportunities.

The most recent analyst rating on (TSE:AG) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on First Majestic Silver stock, see the TSE:AG Stock Forecast page.