Coeur Mining Inc. engages in the ownership, operation, exploration, and development of silver and gold mining properties primarily in the United States, Mexico, Bolivia, Argentina, Australia, Ecuador, Chile, and New Zealand. The company was founded in 1928 and is based in Chicago, Illinois.
CDE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Coeur Mining Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Coeur Mining Inc ranked in the 24th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Coeur Mining Inc, consider:
Coeur Mining Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Coeur Mining Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -10.27. This coverage rate is greater than that of merely 8.68% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Basic Materials), Coeur Mining Inc has a reliance on debt greater than only 22.44% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
TECK, AA, AEHL, BCPC, and OR can be thought of as valuation peers to CDE, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
We're now more than two-thirds of the way through the Q2 earnings season for the Silver Miners Index (SIL), and Coeur Mining (CDE) was one of the first names to report its earnings. While the company had a rough Q1 with free-cash-flow hitting a 1-year low, the company had a...