🩶‼️‼️$Fortuna Silver Mines(FSM)$ ‼️‼️🩶
Fortuna Silver Mines (FSM) just went above its 52 week high and is currently trading at $5.21
I've just brought another position with Tiger (who offer much more competitive rates and fees) after I sold up with Sharesies NZ on Friday.
Fortuna's ascent, oh what a thrill, at $5.21 it's a silver spill!🩶
First quarter 2024 earnings released: EPS: US$0.086 (vs US$0.037 in 1Q 2023)
First quarter 2024 results:
• EPS: US$0.086 (up from US$0.037 in 1Q 2023).
• Revenue: US$224.9m (up 28% from 1Q 2023).
• Net income: US$26.3m (up 141% from 1Q 2023).
• Profit margin: 12% (up from 6.2% in 1Q 2023).
Revenue is expected to decline by 12% p.a. on average during the next 3 years, while revenues in the Metals and Mining industry in the US are expected to grow by 4.9%.
Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 83 percentage points per year, which is a significant difference in performance.
@MillionaireTiger @TigerPM @Tiger_chat @TigerObserver @Daily_Discussion @Tiger_comments @Tiger_Earnings
Given Fortuna Silver Mines' impressive first quarter 2024 results, including a substantial increase in EPS and revenue, how might the projected decline in revenue over the next three years impact the company's ability to maintain its current profit margin and sustain its historical share price growth rate exceeding its earnings growth rate by 83 percentage points per year?@TigerGPT
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Fortuna Silver Mines (FSM) Analysis
Business and Industry Overview:
Fortuna Silver Mines is a mining company engaged in the exploration, extraction, and processing of precious and base metal deposits.
The company operates mines in Peru, Mexico, and Argentina, with a focus on silver and gold production.
The Metals and Mining industry is expected to grow by 4.9% in the US, indicating positive industry prospects.
Earnings Analysis:
First quarter 2024 results:
EPS: US$0.09
Revenue: US$224.9 million (up 28% from 1Q 2023)
Net income: US$26.3 million (up 141% from 1Q 2023)
Profit margin: 12% (up from 6.2% in 1Q 2023)
Earnings forecast:
2024FY: EPS forecast of US$0.18, gross income forecast of US$915.14 million, and EBIT forecast of US$141.50 million.
2025FY: EPS forecast of US$0.26, gross income forecast of US$742.39 million, and EBIT forecast of US$126.00 million.
2026FY: EPS forecast of US$0.13, gross income forecast of US$550.74 million, and EBIT forecast of US$94.00 million.
Trend Analysis:
Support price (as of 2024-05-09): $4.58 (USD)
Resistance price (as of 2024-05-09): $5.18 (USD)
Average Cost (as of 2024-05-09): $4.1 (USD)
Current Stock Price (as of 2024-05-11): $5.215 (USD)
Valuation Analysis:
Analyst recommendation: 1 buy, 4 hold.
Capital Flow Analysis:
Capital Flow Data (5 Day):
05-03: -1440.03 Unit(K)
05-06: 1159.37 Unit(K)
05-07: 377.61 Unit(K)
05-08: 716.55 Unit(K)
05-09: 1773.27 Unit(K)
Capital Flow Data (1 Day):
Big Inflow: $2.14 million
Median Inflow: $1.86 million
Small Inflow: $9.36 million
Big Outflow: $1.59 million
Median Outflow: $2.37 million
Small Outflow: $10.89 million
Analysis Summary:
Fortuna Silver Mines has shown impressive first-quarter 2024 results, with significant increases in EPS, revenue, net income, and profit margin.
However, the company's revenue is projected to decline by 12% per year on average over the next three years, while the industry is expected to grow by 4.9%.
The historical trend shows that the company's share price growth rate has exceeded its earnings growth rate by 83 percentage points per year.
The projected decline in revenue may impact the company's ability to maintain its current profit margin and sustain its historical share price growth rate.
It is important to consider the inherent risks in the stock market and the normal fluctuations in stock prices before making investment decisions.
Disclaimer: The above analysis is for informational purposes only and should not be considered as investment advice. Investing in stocks involves risks, and it is essential to conduct thorough research and analysis before making any investment decisions.