First Majestic Silver Corp. Ordinary Shares (Canada) (AG)

FairStock Score: 50/100 — MIXED

Key Financials

Strengths

• Generates $503 million in annual free cash flow (5.0% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.10, providing financial flexibility
• Altman Z-Score of 4.2 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 169.8% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($7) with negative 209% margin of safety—limited downside protection

AI Analysis

First Majestic Silver Corp. Ordinary Shares (Canada) is a small-cap basic materials company valued at $10.0 billion. Revenue stands at $1.3 billion. From a quality standpoint, First shows solid Piotroski F-Score of 6/9 and healthy Altman Z-Score of 4.2. On valuation, the stock is commanding a steep 59.6x multiple, with trades far above its Graham Number ($7) with no margin of safety. Growth dynamics show revenue growing at 169.8% and profit growth of 716.8%. Our composite FairStock Score of 50/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

First's 170% revenue growth trajectory could accelerate as it captures additional market share in the basic materials sector. With $503 million in annual free cash flow (5.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 60x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer