One-glance verdict
Within fair range
$44.90 our estimate vs market $40.58
Wall Street consensus: $60.17 (34.0% higher than our fair-value estimate)
10% below our estimate
Fundamentals snapshot
Pan American Silver Corp.
PAAS · NYQ · Basic Materials · Gold
Current price
$40.58
52-week range
$33.62 - $69.99
Market cap
$16.73B
Balance sheet
Healthy
20.69x Strong cushion
Net cash $856.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 28.4% last year.
- Reward Returns 22.4% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Insider ownership is only 0.1% (peer median: 0.7%).
What this company does
Pan American Silver Corp.
Pan American Silver Corp. mines for and sells precious metals like silver and gold, mainly from its operations in places like Mexico and South America. This business matters because the price of these metals can go up and down, directly impacting how much money the company makes.
How the company got here
Pan American Silver Corp. has a long history, originally incorporated in 1979 and formerly known as Pan American Minerals Corp. before changing its name in 1995. The company has grown through exploration, mine development, and extraction of precious metals across various countries in the Americas. Its journey has involved establishing and operating mines, focusing on both silver and gold deposits, and evolving its portfolio over decades to become a significant player in the precious metals mining industry.
What it actually does
Pan American Silver Corp. is in the business of finding, digging up, and processing valuable metals, primarily silver and gold. Think of them as a company that operates large underground or open-pit sites where they extract ore, which is then crushed and treated to separate the precious metals. These metals are then sold to other companies, often refiners or manufacturers, who use them to create jewelry, electronics, and other products. The company's operations span across several countries in North and South America.
Silver
This is the company's foundational business, focusing on extracting silver from various mines like La Colorada and Cerro Moro. Silver is a precious metal used in jewelry, silverware, and industrially in electronics and solar panels due to its conductivity. The revenue from silver sales forms a significant part of Pan American Silver's overall income, reflecting its historical focus and expertise in this metal. The company manages the entire process from mining the ore to selling the refined silver.
Gold
Beyond silver, Pan American Silver Corp. also has a substantial gold mining segment, with operations including the Jacobina and El Peñon mines. Gold is highly valued for its use in jewelry, as a store of value in investments, and in some industrial applications. This segment contributes significantly to the company's revenue, diversifying its precious metal offerings and providing another avenue for growth and profitability. The company applies similar extraction and processing techniques as it does for silver.
Exploration and Other Metals
While silver and gold are the primary focus, Pan American Silver Corp. also actively explores for and extracts other valuable metals like zinc, lead, and copper. These metals are often found alongside silver and gold deposits, and their extraction can add to the overall economic viability of a mine. These additional metals are crucial components in various industries, from construction (lead and zinc) to electronics and renewable energy (copper), providing further revenue streams for the company.
What management is betting on now
Management is focused on growing its production of silver and gold through strategic investments in its existing mines and exploration for new deposits. They are also prioritizing operational efficiency to lower costs and increase profitability, which means finding ways to extract more metal with less expense. Additionally, the company is committed to responsible mining practices, aiming to minimize environmental impact and ensure the safety of its workers. These efforts are aimed at increasing shareholder value by producing more valuable metals reliably and cost-effectively.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $44.90 vs current price $40.58
Wall Street consensus is the average analyst price target: $60.17 (34.0% higher than our fair-value estimate).
Our most-likely fair value is $44.90 a share — about 10.7% away from today's price of $40.58, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $856.0M - more cash than debt. Interest coverage 20.7x.
Net debt
$-856.00M
Interest coverage
20.69x
Pan American Silver Corp.'s profit covers its interest bill about 20.7 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
PAAS
BASELINE
Pan American Silver Corp.
Total debt $844.00M Interest coverage 20.69x This is the baseline the peer rows are being compared against.
Total debt $19.71M Interest coverage 12.91x -38% vs PAAS Carries about 1.6x less debt cushion than PAAS.
Total debt $331.15M Interest coverage 23.64x +14% vs PAAS Has roughly the same debt cushion as PAAS.
Total debt $2.37M Interest coverage 32.21x +56% vs PAAS Carries about 1.6x more debt cushion than PAAS.
Total debt $234.17M Interest coverage 14.26x -31% vs PAAS Carries about 1.5x less debt cushion than PAAS.
What you should know
The case for and against PAAS
3 Rewards
1 Risk
Rewards
-
Revenue grew 28.4% last year.
-
Returns 22.4% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Insider ownership is only 0.1% (peer median: 0.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
10.68x
Forward P/E
9.48x
P/B
2.26x
P/S
3.75x
EV/EBITDA
7.17x
PEG ratio
7.02x
Profitability
How much profit each dollar creates
Gross margin
55.2%
Operating margin
34.3%
Net margin
35.2%
ROE
22.4%
ROA
11.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.11x
Current ratio
2.72x
Quick ratio
1.99x
Total debt
$844.00M
Total cash
$1.70B
Growth
How the business has been compounding
Revenue TTM
$4.46B
Revenue 5Y CAGR
34.3%
EPS TTM
3.80
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$1.33B
Free CF TTM
$1.02B
FCF margin
22.8%
Dividend
Shareholder payout
Yield
1.8%
Payout ratio
18.0%
Last ex-div date
2026-08-24