Endeavour Silver (EDR) AI Stock Analysis

• Market Cap: C$4.00B
• Dividend Yield: N/A
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.20
• Revenue Growth: 50.37%
• EPS Growth: -191.85%
• Country: CA
• Employees: 1,539
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): -0.01
• Shares Outstanding: 294,177,500
• 10 Day Avg. Volume: 2,281,914
• 30 Day Avg. Volume: 1,725,616
• PEG Ratio: 0.05
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 4.14
• P/FCF Ratio: -5.11
• 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$14.81
• Price Target Upside: 9.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): <0.01
• Revenue Forecast (FY): C$624.52M

• Rating: 58 Neutral
• Price Target: C$12.50 ▼(-7.95% Downside)

Endeavour Silver's overall stock score reflects strong technical indicators and positive corporate events, offset by financial performance challenges and a difficult valuation environment. The company's strategic initiatives and production growth are promising, but profitability and cash flow issues remain significant concerns.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand and successful expansion of production capacity, which supports long-term business sustainability.

Strategic Asset Sale

The sale of the Bolanitos Mine enhances liquidity and allows Endeavour Silver to focus on core assets, potentially improving operational efficiency and growth prospects.

Terronera Commercial Production

Achieving commercial production at Terronera is a pivotal milestone that can drive future revenue and strengthen the company's market position in the mining sector.

Negative Factors

Profitability Challenges

Ongoing profitability issues, exacerbated by derivative losses, highlight financial management challenges that could impact long-term value creation and stability.

High Operating Costs

Rising operating costs, including exploration and refining charges, can pressure margins and reduce cash flow, affecting the company's ability to invest in growth.

Cash Flow Difficulties

Negative cash flow trends indicate operational inefficiencies and could limit the company's ability to fund new projects or manage debt, posing a risk to financial health.

Endeavour Silver Business Overview & Revenue Model

Company Description

Endeavour Silver Corp. is a mid-tier precious metals mining company based in Canada that focuses on the acquisition, exploration, and development of silver-gold mining projects in Mexico. Established in 2003, the company operates several high-grade silver mines and is dedicated to sustainable mining practices. Endeavour Silver's core products include silver and gold, with a strategic focus on increasing its production capacity and expanding its resource base through exploration efforts.

How the Company Makes Money

Endeavour Silver generates revenue primarily through the mining and sale of silver and gold. The company operates several mines in Mexico, where it extracts precious metals and sells them in the global market. Key revenue streams include the direct sale of mined silver and gold products, as well as potential by-products from its mining operations. Additionally, Endeavour Silver benefits from rising precious metal prices, which can significantly impact its earnings. The company may also engage in hedging strategies to manage price volatility. Partnerships with various suppliers and service providers in the mining industry contribute to its operational efficiency and cost management, further supporting its revenue generation.

Endeavour Silver Financial Statement Overview

Summary

Endeavour Silver faces significant profitability challenges, with negative net income and declining margins. While the balance sheet shows manageable leverage, the negative return on equity highlights profitability issues. Cash flow management is a concern, with negative free cash flow growth and poor cash flow coverage ratios. Overall, the company needs to address profitability and cash flow issues to improve its financial health.

Income Statement

Endeavour Silver has experienced fluctuating revenue growth with a recent uptick of 13.95% in TTM. However, profitability metrics are concerning, with a negative net profit margin of -29.10% and declining EBIT and EBITDA margins. The company faces challenges in maintaining consistent profitability, which impacts its overall income statement performance.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.27, indicating manageable leverage. However, the return on equity is negative at -14.24%, reflecting poor profitability relative to shareholder equity. The equity ratio remains stable, suggesting a solid asset base, but profitability issues weigh down the overall score.

Cash Flow

Cash flow analysis reveals a negative free cash flow growth rate and a concerning free cash flow to net income ratio of -7.80. Operating cash flow remains positive but insufficient to cover net income losses. The company struggles with cash flow management, impacting its financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	247.75M	217.64M	205.46M	210.16M	165.32M	138.46M
Gross Profit	40.81M	42.08M	36.61M	51.52M	36.37M	27.34M
EBITDA	-17.69M	10.03M	47.86M	51.83M	31.55M	28.73M
Net Income	-69.64M	-31.48M	6.12M	6.20M	13.96M	1.16M
Balance Sheet
Total Assets	995.89M	719.25M	474.81M	399.44M	294.02M	210.59M
Cash, Cash Equivalents and Short-Term Investments	52.80M	107.50M	40.42M	92.04M	114.50M	65.85M
Total Debt	136.61M	120.86M	9.53M	15.58M	11.49M	10.77M
Total Liabilities	466.81M	234.81M	88.47M	83.54M	56.62M	51.52M
Stockholders Equity	529.09M	484.44M	386.34M	315.89M	237.41M	159.07M
Cash Flow
Free Cash Flow	-161.88M	-176.27M	-106.02M	-54.72M	-30.63M	13.43M
Operating Cash Flow	28.54M	19.11M	11.77M	54.99M	23.46M	38.96M
Investing Cash Flow	-254.08M	-183.46M	-108.00M	-111.45M	-38.01M	-29.81M
Financing Cash Flow	210.11M	236.00M	48.92M	36.76M	56.65M	27.54M

Endeavour Silver Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EDR, the sentiment is Positive. The current price of 13.58 is above the 20-day moving average (MA) of 12.70, above the 50-day MA of 11.82, and above the 200-day MA of 8.24, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 63.31 is Neutral, neither overbought nor oversold. The STOCH value of 75.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EDR.

Endeavour Silver Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASM	78 Outperform	C$1.47B	43.88	14.35%	―	65.77%	458.38%
GGD	74 Outperform	$1.13B	45.18	5.38%	―	104.08%	832.86%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
EDR	58 Neutral	C$4.00B	-28.74	-20.46%	―	50.37%	-191.85%
SLVR	47 Neutral	C$440.38M	-81.98	-4.86%	―	―	-14.43%
ABRA	41 Neutral	C$1.65B	-29.86	-122.96%	―	―	-171.41%
NUAG	39 Underperform	C$933.60M	-197.35	-2.40%	―	―	40.00%

Endeavour Silver Corporate Events

Endeavour Silver Prices $300 Million Convertible Notes Offering

Endeavour 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 repay existing debt, fund the Pitarrilla project in Mexico, and support general corporate purposes, including strategic opportunities. This move is expected to enhance Endeavour’s financial flexibility and support its growth initiatives, potentially strengthening its position in the silver mining industry.

Endeavour Silver Announces $300 Million Convertible Notes Offering

Endeavour Silver Corp. has announced a private placement offering of US$300 million in unsecured convertible senior notes due 2031, with an option for initial purchasers to buy an additional US$45 million. The proceeds from this offering are intended to repay the company’s existing credit facility, fund the advancement of the Pitarrilla project in Mexico, and support general corporate purposes. This strategic financial move is expected to enhance Endeavour’s operational capabilities and strengthen its position in the silver mining industry.

Endeavour Silver to Sell Bolañitos Mine to Guanajuato Silver

Endeavour Silver Corp. has entered into a definitive agreement to sell its Bolañitos gold-silver mine in Mexico to Guanajuato Silver Company Ltd. for up to $50 million. This transaction is part of Endeavour’s strategy to focus on its core silver assets, such as the Terronera and Pitarrilla projects, positioning the company for sustainable growth and enhancing its market position in the silver mining industry.

Endeavour Silver Reports Promising Drill Results at Kolpa Mine

Endeavour Silver Corp. announced positive drill results from its exploration program at the Kolpa Mine in Peru, revealing high-grade silver-lead-zinc mineralization. The discovery of significant mineral zones, particularly in the Poderosa West and Caudalosa Chica veins, highlights the potential for further resource development and positions the company for future growth. The management is planning a systematic exploration program to capitalize on these findings, which could enhance the company’s market position and offer promising opportunities for stakeholders.