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A-Mark Precious Metals (AMRK)
NASDAQ:AMRK
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A-Mark Precious Metals
(NASDAQ:AMRK)
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Rating:60Neutral
Price Target:
$28.00
▲(4.91% Upside)
A-Mark Precious Metals' overall stock score is primarily influenced by its financial performance challenges, including declining revenue and profit margins. The technical analysis shows strong upward momentum, but overbought conditions could pose risks. Valuation concerns due to a high P/E ratio further impact the score. The earnings call provides a mixed sentiment, with strategic acquisitions and gross profit growth offset by operational challenges.
Positive Factors
Strategic Acquisitions
These acquisitions enhance A-Mark's market position by expanding its reach into higher-margin collectible and luxury segments, supporting long-term revenue growth and profitability.
Expansion in Asia
The expansion into Asia broadens A-Mark's market reach, tapping into the growing Southeast Asian market, which supports sustainable revenue growth and diversification.
Increased Cash Position
Improved liquidity strengthens A-Mark's balance sheet, providing financial flexibility to invest in growth opportunities and weather market volatility.
Negative Factors
Decline in Gold and Silver Sales
The decline in gold and silver sales reflects challenges in core business operations, potentially impacting revenue and profitability if the trend continues.
Significant SG&A Expense Increase
Rising SG&A expenses could pressure margins and profitability, necessitating cost control measures to maintain financial health.
High Leverage
High leverage poses a risk in volatile markets, potentially limiting financial flexibility and increasing vulnerability to interest rate changes.
A-Mark Precious Metals (AMRK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$657.63M
Dividend Yield3%
Average Volume (3M)383.57K
Price to Earnings (P/E)37.7
Beta (1Y)0.60
Revenue Growth13.19%
EPS Growth-74.55%
CountryUS
Employees482
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.41
Shares Outstanding24,639,385
10 Day Avg. Volume318,087
30 Day Avg. Volume383,567
Financial Highlights & Ratios
PEG Ratio-0.40
Price to Book (P/B)0.81
Price to Sales (P/S)0.05
P/FCF Ratio3.44
Enterprise Value/Market Cap2.17
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit6.77
Enterprise Value/Ebitda22.17
Forecast
1Y Price Target
$44.00Price Target Upside64.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
A-Mark Precious Metals Business Overview & Revenue Model
Company DescriptionA-Mark Precious Metals, Inc., together with its subsidiaries, operates as a precious metals trading company. It operates in three segments: Wholesale Sales & Ancillary Services, Direct-to-Consumer, and Secured Lending. The Wholesale Sales & Ancillary Services segment sells gold, silver, platinum, and palladium in the form of bars, plates, powders, wafers, grains, ingots, and coins. This segment also offers various ancillary services, including financing, storage, consignment, logistics, and various customized financial programs; and designs and produces minted silver products. The Direct-to-Consumer segment provides access to an array of gold, silver, copper, platinum, and palladium products through its websites and marketplaces. It operates five company-owned websites targeting specific niches within the precious metals retail market. This segment also operates as a direct retailer of precious metals to the investor community and markets its precious metal products on television, radio, and the internet, as well as through customer service outreach. The Secured Lending segment originates and acquires commercial loans secured by bullion and numismatic coins; and serves coin and precious metal dealers, investors, and collectors. The company serves customers, including financial institutions, bullion retailers, industrial manufacturers and fabricators, sovereign mints, refiners, coin and metal dealers, investors, collectors, and e-commerce and other retail customers. It has operations in the United States, rest of North America, Europe, the Asia Pacific, Africa, and Australia. A-Mark Precious Metals, Inc. was founded in 1965 and is headquartered in El Segundo, California.
How the Company Makes MoneyA-Mark generates revenue primarily through the buying and selling of precious metals, earning profits from the spread between purchase and sale prices. Key revenue streams include wholesale trading of bullion and coins, where the company capitalizes on market fluctuations and customer demand. Additionally, A-Mark offers storage and logistics services for precious metals, which also contribute to its earnings. The company has established significant partnerships with mining companies, financial institutions, and other entities in the precious metals market, further enhancing its revenue potential through increased transaction volumes and service offerings.
A-Mark Precious Metals Earnings Call Summary
Earnings Call Date:Sep 09, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong gross profit growth, successful strategic acquisitions, and expansion into Asia, which are significant positives. However, these are tempered by declines in gold and silver sales, increased SG&A expenses, and a decrease in new customers, indicating operational challenges. The sentiment is mixed, with notable achievements offset by significant challenges.Q4-2025 Updates
Positive Updates
Increased Gross Profit
Gross profit for Q4 fiscal '25 increased 90% to $81.7 million or 3.25% of revenue from $43.0 million or 1.7% of revenue in Q4 of last year. For the full fiscal year, gross profit increased 22% to $210.9 million or 1.92% of revenue.
Successful Strategic Acquisitions
A-Mark completed acquisitions of Spectrum Group International, AMS Holdings, Pinehurst Coin Exchange, and a controlling interest in Silver Gold Bull, leading to increased gross profit and expanded reach into higher-margin collectible and luxury segments.
Expansion in Asia
Significant progress in expansion into Asia with LPM now fully operational in Singapore across both wholesale and e-commerce channels, broadening reach into the Southeast Asian market.
Record Rare Coin Auction
Stack's Bowers conducted its largest sale in history, a $62 million sale over 9 days, with over 14,000 lots sold, demonstrating strong performance in the rare coin market.
Increased Cash Position
At fiscal year-end, A-Mark had $77.7 million of cash compared to $48.6 million at the end of the fiscal '24, indicating improved liquidity.
Negative Updates
Decrease in Gold and Silver Sales
For Q4 fiscal 2025, gold ounces sold decreased 23% year-over-year, and silver ounces sold decreased 38% year-over-year. For the full fiscal year, gold and silver sales were down 11% and 32% respectively.
Significant SG&A Expense Increase
SG&A expenses for Q4 of fiscal '25 increased 135% to $53.4 million from $22.7 million in Q4 of last year, primarily due to increases in compensation, advertising, and professional fees.
Decline in New Customers
The number of new customers in the DTC segment for Q4 fiscal 2025 was 108,900, down 81% from Q4 of last year and decreased 88% from last quarter.
Decrease in Earnings from Equity Method Investments
Earnings from equity method investments in Q4 decreased 201% to a loss of $0.8 million from earnings of $0.8 million in Q4 of last year.
Lower Inventory Turn Ratio
For the fiscal fourth quarter, the inventory turn ratio was 1.9, a 17% decrease from 2.3 in Q4 of last year.
Company Guidance
During the fiscal fourth quarter and full year 2025, A-Mark Precious Metals reported strong financial results and significant progress in strategic initiatives. For the fiscal year, the company achieved $17.3 million in net income with non-GAAP adjusted net income before tax provisions at $53.1 million, non-GAAP EBITDA at $64.4 million, and diluted earnings per share (EPS) of $0.71. The fourth quarter alone saw $10.3 million in net income, $19.2 million in non-GAAP adjusted net income, $29.2 million in non-GAAP EBITDA, and a $0.41 diluted EPS. Compared to the previous quarter, the fourth quarter demonstrated a 99% increase in gross profit, a 233% rise in non-GAAP adjusted net income, and a 2,167% surge in non-GAAP EBITDA, reflecting the positive impact of strategic acquisitions, including Spectrum Group International, AMS Holdings, and Pinehurst Coin Exchange. Revenue for Q4 fiscal '25 slightly decreased by 1% to $2.51 billion, though adjusted for forward sales, this reflects a 5% increase due to higher average selling prices and strategic acquisitions. For the full year, revenue rose by 1.3% to $10.98 billion, with a 15% increase after adjusting for forward sales. Gross profit for Q4 fiscal '25 surged by 90% to $81.7 million, primarily driven by acquisitions, and for the full year, gross profit increased by 22% to $210.9 million. The company also highlighted progress in its expansion into Asia, with LPM operational in Singapore, enhancing its reach into the Southeast Asian market.A-Mark Precious Metals Financial Statement Overview
Summary
A-Mark Precious Metals faces challenges with declining revenue and profit margins, coupled with high leverage. While the company maintains a stable free cash flow to net income ratio, the negative growth in free cash flow and low return on equity highlight potential financial strain. Strategic improvements in operational efficiency and debt management are essential for future stability.Income Statement
A-Mark Precious Metals has experienced fluctuating revenue growth, with a recent decline of 11.7% after previous years of growth. The gross profit margin is relatively low at 1.92%, and the net profit margin has decreased to 0.16%, indicating challenges in maintaining profitability. EBIT and EBITDA margins have also seen declines, reflecting operational inefficiencies.45
Neutral
Balance Sheet
The company has a high debt-to-equity ratio of 1.41, indicating significant leverage, which poses a risk in volatile markets. Return on equity has decreased to 2.67%, showing reduced profitability from shareholders' investments. The equity ratio stands at 29.32%, suggesting moderate financial stability.55
Neutral
Cash Flow
Free cash flow growth has been negative at -5.42%, and the operating cash flow to net income ratio is low at 0.14, indicating potential liquidity issues. However, the free cash flow to net income ratio is stable at 1.0, suggesting that the company is generating enough cash to cover its net income.50
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.98B | 10.98B | 9.70B | 9.29B | 8.16B | 7.61B |
| Gross Profit | 210.92M | 210.92M | 173.25M | 294.67M | 261.76M | 210.20M |
| EBITDA | 64.44M | 64.44M | 133.71M | 209.67M | 185.15M | 223.45M |
| Net Income | 17.32M | 17.32M | 68.55M | 156.36M | 132.54M | 159.64M |
Balance Sheet | ||||||
| Total Assets | 2.22B | 2.22B | 1.83B | 1.55B | 1.44B | 1.19B |
| Cash, Cash Equivalents and Short-Term Investments | 77.74M | 77.74M | 48.64M | 39.32M | 37.78M | 101.41M |
| Total Debt | 352.34M | 915.08M | 775.11M | 670.58M | 315.05M | 283.54M |
| Total Liabilities | 1.51B | 1.51B | 1.17B | 945.18M | 952.19M | 827.64M |
| Stockholders Equity | 649.52M | 649.52M | 607.63M | 599.12M | 488.61M | 362.62M |
Cash Flow | ||||||
| Free Cash Flow | 145.47M | 152.35M | 45.16M | -40.11M | -92.05M | -54.77M |
| Operating Cash Flow | 152.35M | 152.35M | 60.93M | -30.32M | -89.17M | -52.65M |
| Investing Cash Flow | -43.46M | -104.67M | -63.60M | 6.84M | -60.56M | -130.39M |
| Financing Cash Flow | 23.79M | -18.58M | 11.98M | 25.02M | 86.11M | 232.13M |
A-Mark Precious Metals Technical Analysis
Positive
26.69
Price Trends
24.14
Positive
22.80
Positive
24.33
Positive
Market Momentum
0.68
Positive
58.04
Neutral
43.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMRK, the sentiment is Positive. The current price of 26.69 is above the 20-day moving average (MA) of 26.30, above the 50-day MA of 24.14, and above the 200-day MA of 24.33, indicating a bullish trend. The MACD of 0.68 indicates Positive momentum. The RSI at 58.04 is Neutral, neither overbought nor oversold. The STOCH value of 43.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMRK.
A-Mark Precious Metals Risk Analysis
A-Mark Precious Metals disclosed 49 risk factors in its most recent earnings report. A-Mark Precious Metals reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
A-Mark Precious Metals Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $4.37B | 30.44 | 17.07% | 0.87% | 21.05% | 23.00% | |
69 Neutral | $5.04B | 17.22 | 16.01% | ― | 53.19% | 23.89% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $629.59M | 13.68 | 30.23% | ― | 39.84% | -10.81% | |
62 Neutral | $118.45M | 12.34 | 11.37% | ― | 9.24% | -2.06% | |
62 Neutral | $1.12B | 8.82 | -11.34% | ― | 14.65% | -240.80% | |
60 Neutral | $657.63M | 37.67 | 2.76% | 3.00% | 13.19% | -74.55% |
* Financial Sector Average
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A-Mark Precious Metals
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.