Silvercorp Metals Inc. Common Shares (SVM)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham-style investor, I look first for a durable business and a price that offers a margin of safety. Silvercorp is a small precious-metals miner operating in China, with 372 employees. It sells silver, gold, lead, zinc and copper — commodities whose prices it does not control. That limits any moat; its economics swing with metal prices and jurisdiction risk. The latest reported quarter, fiscal Q2 2026, showed revenue of $138.7 million and net income of $59.4 million, a 42.82% net margin. That is excellent, and the balance sheet looks solid: debt-to-equity of 0.10 and an Altman Z-Score of 5.16. FairStock calculates ROE at 8.09% and ROCE at 12.50%, respectable but not extraordinary for a miner. The problem is price. At the 2026-10-13 close of $10.04, FairStock calculates a P/E of 91.27, P/B of 2.25, and a Graham Number of $3.32 — a margin of safety of -202.41%. Free cash flow is $79.1 million, only a 3.0% FCF yield. The PEG of 1.01 suggests growth may justify some premium, but the P/E and Graham math do not. FairStock's Piotroski F-Score is 5/9, middling. The company has grown revenue and profit rapidly, yet a miner's growth is often cyclical. I would want a much lower price or proof that current metal prices and margins are sustainable before calling this a value opportunity. The business is financially healthy; the stock is not cheap.

In plain English: Silvercorp mines silver and other metals in China. The latest quarter showed strong sales and profit, and the company has little debt. But compared with its earnings and book value, the stock looks expensive, and the dividend is very small.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer