Valuation Scorecard: Stock Rating C-High Neutral (3/12/24)-A-Mark Precious Metals Inc (AMRK).

Over the next 6 years, A-Mark Precious Metals shares will need to reach $51 to achieve average annual stock market performance of 9.0%. To achieve Upper quartile performance, A-Mark Precious Metals’ stock price will need to reach $61 by 2029. As reflected at the current price of $31, what future A-Mark Precious Metals operating performance is the market anticipating?

Executive Summary

• Price Target Research identifies A-Mark Precious Metals as having: high expected growth, high financial strength, high profitability, and stability. A big positive influence on A-Mark Precious Metals’ valuation is its superior Growth.
• Average valuation, average shareholder returns. Current valuation levels are average relative to the A-Mark Precious Metals Peer Group. Recent market returns have tracked the A-Mark Precious Metals Peer Group. Total shareholder returns expected to significantly beat the overall equity market. Based on current investor expectations, A-Mark Precious Metals shares should reach a level of $216 by 2029 — an 42.8% per year total shareholder return. A 2029 stock price of $51 would reflect median performance and a price of $61 would be required to reach upper quartile performance.
• Growth has been A-Mark Precious Metals’ biggest valuation strength. Historical growth has been very high relative to the A-Mark Precious Metals Peer Group and forecasted growth is relatively very high. Asset Growth, Equity Growth, and Revenue Growth have been superior. These factors have buoyed market perceptions of A-Mark Precious Metals. A-Mark Precious Metals’ historical income statement growth and balance sheet growth have diverged. Revenue growth has paralleled asset growth; earnings growth has fallen short of equity growth driving erosion in return on equity.
• Asset Turnover, and Pretax ROA are group leading. These factors have strengthened market perceptions of A-Mark Precious Metals. The company has normal cash needs.
• A-Mark Precious Metals’ risk profile is favorable. Overall variability has been very high with very high revenue variability, very high E.P.S. variability, and very low stock price volatility. Financial Strength is relatively very high and earnings’ expectations are below average. The debt/capital ratio has declined very significantly.

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