Fundamental analysis: Yamana Gold Inc. (AUY)

Awarener score: 5.7

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Very good) and growth (Very poor), and the company's inclination to return cash to the stockholders (Average).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.0

Business has been shrinking at a fast pace. It's been last-in-rank when measured against peer companies.
Yamana Gold Inc. business trend stability is very good. The higher the stability, the lower the risk. It looks better than most rivals.

Margins score: 7.5

AUY profit margins -on goods and services sold- are usually very good. They stand better than most rival companies.
Business profit on sales tends to be excellent. It's almost average when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually good. They remain in a weak position compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be very good in relation to total revenues. They're still slightly better than similar companies.
Profits -before income taxes- are usually good considering total sales, and remain almost average when measured against rivals.
Total net profit tends to be sufficient when confronted to sales. Company stands below average when measured against comparable firms.

Growth score: 1.4

Yamana Gold Inc. profit -on goods and services sold- has been growing at a very low pace. It's been lacking compared to competitors.
In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 2.0

AUY had to pay too much income taxes in relation to profits made in the past years. It's been mediocre against peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 6.0

Yamana Gold Inc. usually gets good returns on the resources it controls. It proves similar to peer firms.
The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain rather normal in relation to similar companies.
Profitability -in relation to owned resources- is usually modest. It ranks almost average when measured against competitors.
In the past, got sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's similar to comparable enterprises.

Usage of Funds score: 6.0

AUY usually uses a very large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is heavy. It stands similar to rival firms.
The company is usually replacing the property, plant, and equipment that gets old, keeping its operating capabilities up to date, which is substantially worse when measured against industry peers.
In the past twelve months it paid somewhat low dividends, considering the current stock price. It came slightly worse than competitors.
Has significantly increased dividend payments in the past years. Business prospects probably have improved. The company has behaved close to average when compared to similar firms.
Dividend payments usually represent a modest portion of genuine funds generation and should be reasonable safe. Sustainability looks well ranked against comparable companies.
The company barely enlarges the pool of investors, resulting in slightly more mouths feeding on the pie of profits. It remains excellent in relation to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
The company uses a low portion of genuine fund generation to reward investors, which can most likely be sustained. It still looks more than average in relation to competitors.

Balance Sheet score: 6.3

Yamana Gold Inc. intangible assets (like brands and goodwill) represent a small portion of resources controlled, according to accounting books. It isn't that a significant risk of liquidating them if the company ever gets in financial distress. It happens to be substantially worse when measured against peer companies.
The company has roughly double short-term resources than short-term obligations. Liquidity concerns are normally not an issue. It turns to be in a weak position compared to similar firms.
A very minor portion of resources controlled were provided for with financial debt. Financial strength is solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains slightly worse than rival firms.
Controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks weak when measured against rivals.
For every dollar of short-term obligations, the company has enough dollars in cash and short-term receivables. It's lacking compared to peer firms.
For every dollar of short-term obligations, the company has roughly another of cash and equivalents, which is slightly worse than similar enterprises.
Usually, sales are mostly on cash. It still ranks great when measured against peers.
Normally has approximately three months of sales worth in inventory. It comes up as close to average when compared to competitors.
On average, it takes higher than three months from the purchase to charging customers. It happens to be slightly worse than peers.
On average pays suppliers approximately four months or higher after the purchase. It ranks great when measured against industry peers.
The company charges its customers before it must pay its suppliers, so the more it sales, the more free funds it gets. It's impressive in relation to similar companies.
Net interest expenses consume a portion of usual business earnings, but are bearable. It stands mediocre against rival firms.
Business earnings have usually been good when measured against loans taken. Cutting back reinvesting in the business, it could take less than three years to repay the obligations with current profitability. It ranks almost average when measured against comparable enterprises.
Last twelve months revenues were non-significant in relation to fixed assets. The company must improve income to take advantage of used resources. It looks close to average when compared to similar firms.
Resource exploitation is low when yearly sales are considered, business volume must be significantly increased. This metric is normally tied to the industry where the firm belongs. It's still slightly worse than peer companies.

Valuation score: 5.9

Yamana Gold Inc. looks very expensive in relation to profits and financial position. It happens to be weak when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a slight improvement compared to peers.
In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands top-notch against similar companies.
The company usually generates reasonably more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be fair. It's still great when measured against industry firms.
In the past twelve months, the company hasn't rewarded investors, considering both dividends and share on the pie of earnings. It came up a slight improvement compared to peer ventures.
The company has neither net debt nor net cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks somewhat worse than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation is very high. A lot of improvement expectations are already in the stock price, which is risky. It ranks weak when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks lacking compared to rival firms.
The relation between the stock price and accounting book value might be reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains somewhat better than peer firms.
In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be similar to industry peers.
In an alternate metric of bang for the buck, the company has usually shown a modest earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 5.0

Company at a glance: Yamana Gold Inc. (AUY)

Sector, industry: Basic Materials, Gold

Market Cap: 5.64 billions

Revenues TTM: 1.84 billions

Yamana Gold Inc., together with its subsidiaries, operates as a precious metal producer. It has gold and silver production, development-stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile, and Argentina. The company was formerly known as Yamana Resources Inc. and changed its name to Yamana Gold Inc. in August 2003. Yamana Gold Inc. was founded in 2003 and is headquartered in Toronto, Canada.