Silvercorp Metals (SVM) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: 0.8%
• Average Volume (3M): 686.12K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.81
• Revenue Growth: 31.23%
• EPS Growth: 110.49%
• Country: CA
• Employees: 1,207
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Silver
• EPS (TTM): -0.04
• Shares Outstanding: 217,953,700
• 10 Day Avg. Volume: 589,006
• 30 Day Avg. Volume: 686,116
• PEG Ratio: 0.64
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.85
• Enterprise Value/Market Cap: 0.52
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 5.32
• Enterprise Value/Ebitda: 1.40
• 1Y Price Target: $8.05
• Price Target Upside: 27.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: ―

Silvercorp Metals demonstrates robust financial health, with strong revenue growth, profitability, and efficient operations. The balance sheet is solid, providing stability. Technical indicators suggest neutral momentum, while valuation metrics imply potential undervaluation. Positive earnings call highlights and strategic corporate events further reinforce a positive outlook, though monitoring of costs and zinc production is advised.

Positive Factors

Earnings

Silvercorp reported record quarterly revenue of $83.6M, which exceeded expectations.

Financial Performance

Production costs were below forecast, boosting profitability and operational efficiency.

Operational Improvements

Silver production rates at Ying increased, with further improvement expected due to the operational mill expansion.

Negative Factors

Debt Issuance

The company ended the quarter with cash and equivalents of $354M after raising $143M in net proceeds from the issuance of convertible notes.

Silvercorp Metals Business Overview & Revenue Model

Company Description

Silvercorp Metals Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and mining of mineral properties in China and Mexico. The company primarily explores for silver, gold, lead, and zinc metals. It holds interests in the Ying project located in the Ying Mining District in Henan Province, China; Gaocheng (GC) mine located in Guangdong Province, China; Kuanping project located in Sanmenxia City, Shanzhou District, Henan Province, China; and La Yesca project located in northwest of Guadalajara, Mexico. The company was formerly known as SKN Resources Ltd. and changed its name to Silvercorp Metals Inc. in May 2005. Silvercorp Metals Inc. is headquartered in Vancouver, Canada.

How the Company Makes Money

Silvercorp Metals Inc. generates revenue through the extraction and sale of metals, primarily silver, lead, and zinc. The company operates several mines in China, where it extracts these metals from its mineral properties. After extraction, the metals are processed and sold to various customers, including smelters and other buyers in the metals industry. Silvercorp benefits from the market demand for these commodities, and its earnings are influenced by metal prices, production volumes, and operational efficiencies. Additionally, the company may engage in strategic partnerships or joint ventures to expand its mining operations and maximize its revenue potential.

Silvercorp Metals Financial Statement Overview

Summary

Silvercorp Metals exhibits strong financial performance with robust revenue growth, profitability, and efficient cost management. The balance sheet is solid, with low leverage and a strong equity position. Cash flow is healthy with significant free cash flow growth, though gross profit margin should be monitored.

Income Statement

Silvercorp Metals has shown strong performance in the TTM (Trailing-Twelve-Months) with a significant gross profit margin of 45.8% and a net profit margin of 26.8%. The revenue growth rate from the previous annual report is approximately 23.8%, indicating robust growth. The EBIT margin stands at 42.1%, and the EBITDA margin is 52.5%, reflecting efficient cost management and operational strength. However, the gross profit margin saw a slight decrease compared to the previous year, which may be a point of concern if the trend continues.

Balance Sheet

The company's financial stability is highlighted by a low debt-to-equity ratio of 0.15, indicating conservative financial leverage. The return on equity (ROE) is strong at 10.1% for the TTM, suggesting effective utilization of equity. The equity ratio is 63.4%, showcasing a solid equity position relative to total assets. These metrics suggest a well-balanced balance sheet with minimal risk from leverage.

Cash Flow

The company's free cash flow growth rate is notable, with an increase from the previous period to $49.64 million in the TTM. The operating cash flow to net income ratio is 1.66, and the free cash flow to net income ratio is 0.70, indicating strong cash generation relative to net income. These figures reflect a healthy cash flow position, although the capital expenditures slightly offset the free cash flow growth.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	266.46M	215.19M	208.13M	217.92M	192.10M	158.83M
Gross Profit	122.19M	125.81M	70.78M	84.30M	84.16M	59.37M
EBITDA	139.91M	99.14M	64.80M	98.04M	97.07M	77.36M
Net Income	71.30M	36.31M	20.61M	30.63M	46.38M	34.27M
Balance Sheet
Total Assets	1.12B	702.82M	676.80M	723.54M	652.64M	512.76M
Cash, Cash Equivalents and Short-Term Investments	354.65M	184.89M	203.32M	212.93M	199.09M	142.52M
Total Debt	108.67M	1.31M	583.00K	1.26M	1.74M	2.07M
Total Liabilities	284.14M	105.81M	96.97M	103.42M	86.91M	73.79M
Stockholders Equity	709.26M	507.25M	489.05M	512.40M	467.57M	368.68M
Cash Flow
Free Cash Flow	49.64M	28.10M	30.69M	40.17M	33.71M	41.94M
Operating Cash Flow	118.17M	91.57M	85.64M	107.38M	85.91M	77.25M
Investing Cash Flow	-25.57M	-65.71M	-26.52M	-106.63M	-40.97M	-70.79M
Financing Cash Flow	111.58M	-16.80M	-17.98M	-7.43M	-1.45M	-2.93M

Silvercorp Metals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.33
• 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:SVM, the sentiment is Positive. The current price of 6.33 is above the 20-day moving average (MA) of 5.82, above the 50-day MA of 5.45, and above the 200-day MA of 5.31, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 65.17 is Neutral, neither overbought nor oversold. The STOCH value of 56.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SVM.

Silvercorp Metals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SVM	76 Outperform	$1.26B	14.54	9.62%	0.80%	31.23%	110.49%
Sector *	43 Neutral	AU$1.37B	-6.17	-40.62%	4.19%	-4.78%	-42.91%
MAG		$2.20B	23.81	16.27%	11.36%	―	―
SCZ	72 Outperform	C$366.53M	1.90	223.51%	―	―	―
AYA	58 Neutral	C$1.74B	152.08	-4.59%	―	88.60%	-684.16%
DV	42 Neutral	C$363.06M	―	-21.78%	―	―	31.39%
DSVSF		$1.76B	―	-24.80%	―	―	―

Silvercorp Metals Corporate Events

Silvercorp Metals Unveils Construction Plan for El Domo Project

Silvercorp Metals Inc. has announced its construction budget for the El Domo Project in Ecuador, targeting production by the end of 2026 with an estimated cost of $240.5 million. The project involves advanced engineering and infrastructure development, including mine design, powerline contracts, and construction of various facilities, positioning Silvercorp to strengthen its operational capabilities and market positioning in the mining industry.

Spark’s Take on TSE:SVM Stock

According to Spark, TipRanks’ AI Analyst, TSE:SVM is a Outperform.

Silvercorp Metals demonstrates robust financial performance with strong revenue growth and profitability, a solid balance sheet, and healthy cash flow. The recent earnings call reinforced positive operational outcomes and future growth prospects. While technical indicators suggest moderate upward momentum, valuation metrics imply potential undervaluation, making it an attractive investment option. The company should continue to monitor cost increases and zinc production levels.

To see Spark’s full report on TSE:SVM stock, click here.

Silvercorp Metals Reports Strong Q4 Fiscal 2025 Results and Announces Fiscal 2026 Guidance

Silvercorp Metals reported significant growth in its Q4 Fiscal 2025 operational results, with a 76% increase in revenue and a 42% rise in silver production compared to the previous year. The company also announced its fiscal 2026 production and cost guidance, indicating a strategic focus on maintaining production levels and managing operational costs, which may positively impact its market positioning and stakeholder confidence.

Spark’s Take on TSE:SVM Stock

According to Spark, TipRanks’ AI Analyst, TSE:SVM is a Outperform.

Silvercorp Metals exhibits strong financial performance with significant revenue growth and profitability. The technical analysis indicates moderate upward momentum, and the valuation suggests the stock might be undervalued. Positive earnings call highlights further reinforce the company’s strong operational and financial standing. However, attention to costs and zinc production is warranted.

To see Spark’s full report on TSE:SVM stock, click here.

Silvercorp Metals Posts Strong Q3 Fiscal 2025 Results with $22 Million Adjusted Net Income

Silvercorp Metals reported a strong financial performance for Q3 Fiscal 2025, with an adjusted net income of $22.0 million and operating cash flow of $44.8 million. The company achieved significant production and sales, resulting in revenue of $83.6 million. Key expenses included investments in exploration, development, and infrastructure, as well as repayment obligations and shareholder dividends.