Q: Your thoughts on FVI ? Analysts do not seem to like it that much. However, it did much better than FR. Hold or replace with something else? Thanks.
5i Research Answer:
FVI has certainly outperformed. Of five analysts, four are at HOLD and one is BUY. It has a bit of debt, but hardly a problematic amount, at 1X cash flow. Very solid earnings growth is expected this year and next (EPS expected to more than double in '24). It has been profitable with positive cash flow for the past decade. It is reasonably priced at 17X earnings and there has been insider buying this year. The last quarter was mixed, with sales down 5.7% and EPS missing estimates. It has a new mine, though, and expects margins to improve going forward. Overall, we would consider it a decent silver play.