One-glance verdict
Undervalued
$13.31 our estimate vs market $9.73
Wall Street consensus: $14.25 (7.0% higher than our fair-value estimate)
27% below our estimate, below the bear case
Fundamentals snapshot
Silvercorp Metals Inc.
SVM · ASE · Basic Materials · Silver
Current price
$9.73
52-week range
$6.11 - $15.77
Market cap
$2.15B
Balance sheet
Healthy
18.16x Strong cushion
Net cash $261.67M. 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 46.6% last year.
- Reward Free cash flow was positive in 4/10 years.
- Reward Dividend yield is 0.3% with 10-year payout history.
- Risk Stock trades 148.0% above its 5-year average P/E.
What this company does
Silvercorp Metals Inc.
Silvercorp Metals Inc. mines for precious and base metals like silver, gold, lead, and zinc in China. Their income mostly comes from selling these mined metals. Understanding where their money comes from helps us see how well they are doing at finding and selling valuable minerals.
How the company got here
Silvercorp Metals Inc. began its journey in 1991, initially as a small explorer trading on the TSX Venture Exchange. It went through name changes, from Spokane Resources Ltd. to SKN Resources Ltd., before finally becoming Silvercorp Metals Inc. in 2005. This was also the year it moved to the larger Toronto Stock Exchange. Over the years, the company has established itself as a significant producer of silver, gold, lead, and zinc, primarily operating mines in China. It has a history of profitability and has been expanding its reach through strategic acquisitions and development projects in other countries like Ecuador and Kyrgyzstan.
What it actually does
Silvercorp Metals Inc. is a mining company that extracts valuable metals from the earth. Think of them as a business that digs up precious resources like silver, gold, lead, and zinc. These metals are then processed into concentrates, which are essentially the first step in refining these raw materials. These concentrates are then sold to other companies that specialize in turning them into the pure metals used in everything from jewelry and electronics to industrial applications.
Ying Mining District
This is Silvercorp's main operational hub and is located in China's Henan Province. It's not just one mine, but a collection of several underground mines that together form the Ying Mining District. Here, the company extracts silver, gold, lead, and zinc. These operations are the backbone of Silvercorp's production, consistently contributing a significant portion of the company's overall output and revenue. The district includes mines like SGX, HPG, TLP, and LM, and it's where Silvercorp has honed its expertise in extracting these valuable metals.
GC Mine
Located in China's Guangdong Province, the GC Mine is another key producing asset for Silvercorp. This mine also focuses on extracting silver, lead, and zinc. While the Ying Mining District is Silvercorp's largest operation, the GC Mine plays a crucial role in diversifying the company's production base and contributing to its overall metal output. It represents a significant part of Silvercorp's established mining footprint in China.
El Domo Project
This is a significant development project for Silvercorp, located in Ecuador. It's a copper-gold project that is currently under construction. The El Domo project represents a strategic move for Silvercorp to expand its operations beyond its traditional base in China and diversify its metal production into copper and gold. The company is investing in building this mine, with the goal of it becoming a major contributor to future revenue and growth once it begins production.
Condor Project
Another growth initiative for Silvercorp, the Condor Project is also located in Ecuador and is focused on gold. This project is in the development stage, meaning the company is actively working on advancing it towards potential production. Like the El Domo project, Condor signifies Silvercorp's strategy to expand its geographical reach and diversify its commodity exposure, aiming to unlock new sources of value and growth for the company.
Tulkubash and Kyzyltash Gold Projects
These gold projects are located in Kyrgyzstan and are part of Silvercorp's international expansion strategy. The company is investing in the development of these assets, aiming to add gold production to its portfolio. These projects represent Silvercorp's efforts to grow its business by acquiring and developing promising mineral assets in new regions, diversifying its operational footprint and potential revenue streams.
What management is betting on now
Silvercorp's management is focused on creating long-term value through a multi-pronged strategy. They aim to generate consistent cash flow from their existing, low-cost mines, ensuring a stable financial foundation. Simultaneously, they are investing in expanding their operations through exploration and developing new projects like El Domo and Condor in Ecuador, and the Tulkubash and Kyzyltash projects in Kyrgyzstan. This approach balances maximizing returns from current assets with strategically pursuing growth opportunities in new regions and metals, all while maintaining a strong financial position and a commitment to responsible mining practices.
Price history
How the share price has moved
—
Loading price history…
Is it cheap or expensive?
Fair value $13.31 vs current price $9.73
Wall Street consensus is the average analyst price target: $14.25 (7.0% higher than our fair-value estimate).
Our most-likely fair value is $13.31 a share — about 36.8% above today's price of $9.73, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $261.7M - more cash than debt. Interest coverage 18.2x.
Net debt
$-261.67M
Interest coverage
18.16x
Silvercorp Metals Inc.'s profit covers its interest bill about 18.2 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
SVM
BASELINE
Silvercorp Metals Inc.
Total debt $122.08M Interest coverage 18.16x This is the baseline the peer rows are being compared against.
Total debt $335.39M Interest coverage 23.64x +30% vs SVM Carries about 1.3x more debt cushion than SVM.
Total debt $844.00M Interest coverage 20.69x +14% vs SVM Has roughly the same debt cushion as SVM.
Total debt $19.71M Interest coverage 12.91x -29% vs SVM Carries about 1.4x less debt cushion than SVM.
Total debt $241.30M Interest coverage 14.26x -21% vs SVM Carries about 1.3x less debt cushion than SVM.
What you should know
The case for and against SVM
3 Rewards
1 Risk
Rewards
-
Revenue grew 46.6% last year.
-
Free cash flow was positive in 4/10 years.
-
Dividend yield is 0.3% with 10-year payout history.
Risks
-
Stock trades 148.0% above its 5-year average P/E.
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)
51.21x
Forward P/E
7.01x
P/B
2.15x
P/S
4.44x
EV/EBITDA
7.02x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
75.6%
Operating margin
37.1%
Net margin
9.9%
ROE
9.6%
ROA
11.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.10x
Current ratio
3.28x
Quick ratio
3.09x
Total debt
$122.08M
Total cash
$383.74M
Growth
How the business has been compounding
Revenue TTM
$484.23M
Revenue 5Y CAGR
28.2%
EPS TTM
0.19
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$310.57M
Free CF TTM
$181.31M
FCF margin
37.4%
Dividend
Shareholder payout
Yield
0.3%
Payout ratio
13.2%
Last ex-div date
2026-11-27