First Majestic Gross Profit vs. Current Valuation
| FMV Stock | EUR 5.40 0.20 3.85% |
For First Majestic profitability analysis, we use financial ratios and fundamental drivers that measure the ability of First Majestic to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well First Majestic Silver utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between First Majestic's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of First Majestic Silver over time as well as its relative position and ranking within its peers.
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First Majestic Silver Current Valuation vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining First Majestic's current stock value. Our valuation model uses many indicators to compare First Majestic value to that of its competitors to determine the firm's financial worth. First Majestic Silver is rated # 3 in gross profit category among its peers. It also is rated # 3 in current valuation category among its peers reporting about 16.63 of Current Valuation per Gross Profit. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the First Majestic's earnings, one of the primary drivers of an investment's value.First Current Valuation vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
First Majestic |
| = | 140.6 M |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
First Majestic |
| = | 2.34 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
First Current Valuation vs Competition
First Majestic Silver is rated # 3 in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Silver industry is currently estimated at about 10.35 Billion. First Majestic totals roughly 2.34 Billion in current valuation claiming about 23% of equities listed under Silver industry.
First Majestic Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in First Majestic, profitability is also one of the essential criteria for including it into their portfolios because, without profit, First Majestic will eventually generate negative long term returns. The profitability progress is the general direction of First Majestic's change in net profit over the period of time. It can combine multiple indicators of First Majestic, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
First Majestic Silver Corp. engages in the acquisition, exploration, development, and production of mineral properties with a focus on silver production in Mexico. First Majestic Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada. FIRST MAJESTIC operates under Silver classification in Germany and is traded on Frankfurt Stock Exchange. It employs 5131 people.
First Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on First Majestic. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of First Majestic position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the First Majestic's important profitability drivers and their relationship over time.
Use First Majestic in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if First Majestic position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in First Majestic will appreciate offsetting losses from the drop in the long position's value.First Majestic Pair Trading
First Majestic Silver Pair Trading Analysis
The ability to find closely correlated positions to First Majestic could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace First Majestic when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back First Majestic - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling First Majestic Silver to buy it.
The correlation of First Majestic is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as First Majestic moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if First Majestic Silver moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for First Majestic can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your First Majestic position
In addition to having First Majestic in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Momentum Thematic Idea Now
Momentum
Large corporations operating in software, education, financial and car manufacturing industries. The Momentum theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Momentum Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in First Stock
When determining whether First Majestic Silver is a strong investment it is important to analyze First Majestic's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact First Majestic's future performance. For an informed investment choice regarding First Stock, refer to the following important reports:Check out Investing Opportunities. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
To fully project First Majestic's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of First Majestic Silver at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include First Majestic's income statement, its balance sheet, and the statement of cash flows.