Yamana Story

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AUY -- USA Stock  

USD 5.61  0.04  0.71%

It looks like Agnico Eagle will continue to recover much faster as its share price surged up 3.82% today to Yamana Gold's 8.6207%. As many rational traders are trying to avoid basic materials space, it makes sense to break down Yamana Gold a little further and understand how it stands against Agnico Eagle and other similar entities. We are going to inspect some of the competitive aspects of both Yamana and Agnico.
Published over two months ago
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Should I exit all of Agnico and Yamana?
By analyzing existing basic indicators between Yamana Gold and Agnico, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Agnico with a short position in Yamana Gold. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Yamana Gold has an asset utilization ratio of 16.39 percent. This suggests that the company is making $0.16 for each dollar of assets. An increasing asset utilization means that Yamana Gold is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Yamana or AngloGold is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Yamana Gold dividends

A dividend is the distribution of a portion of Yamana Gold earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Yamana Gold dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Yamana one year expected dividend income is about $0.04 per share.
Yamana Gold Dividend Yield is fairly stable at the moment as compared to the past year. Yamana Gold reported Dividend Yield of 0.0072 in 2019. Dividends per Basic Common Share is likely to rise to 0.0308 in 2020, whereas Payment of Dividends and Other Cash Distributions is likely to drop (25.6 M) in 2020.
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-23.7 M-25.6 M
Dividend Yield 0.0072  0.009895 
Dividends per Basic Common Share 0.03  0.0308 
Investing in dividend-paying stocks, such as Yamana Gold is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Yamana Gold must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Yamana Gold. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Yamana Gold's Liquidity

Yamana Gold financial leverage refers to using borrowed capital as a funding source to finance Yamana Gold ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Yamana Gold financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Yamana Gold's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Yamana Gold, but it might be worth checking our own buy vs. sell analysis

Correlation Between Yamana and AngloGold Ashanti

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Yamana Gold together with similar or unrelated positions with a negative correlation. For example, you can also add AngloGold Ashanti to your portfolio. If AngloGold Ashanti is not perfectly correlated to Yamana Gold it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Yamana Gold for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between AUY and AU for more information.

Breaking it down a bit more

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Yamana Gold revenue. Based on the latest financial disclosure , Yamana Gold reported 1.56 B of revenue. This is 80.15% lower than that of the Basic Materials sector and 2.38% higher than that of Gold industry. The revenue for all United States stocks is 83.47% higher than that of Yamana Gold. As for Agnico Eagle we see revenue of 2.63 B, which is 72.61% higher than that of the Gold

Yamana1.56 Billion
Sector1.52 Billion
Agnico2.63 Billion
1.6 B
Yamana
1.5 B
Sector
2.6 B
Agnico

Our perspective of the current Yamana Gold rise

Yamana Gold current maximum drawdown rises over 25.66. Yamana Gold shows above-average downside volatility for the selected time horizon. We advise investors to inspect Yamana Gold further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Yamana Gold future alpha.

Our Final Take On Yamana Gold

While some other entities within the gold industry are still a little expensive, even after the recent corrections, Yamana Gold may offer a potential longer-term growth to investors. On the whole, as of the 25th of July 2020, our final 30 days Buy-Hold-Sell recommendation on the company is Strong Sell. We believe Yamana Gold is overvalued with below average chance of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Yamana Gold. Please refer to our Terms of Use for any information regarding our disclosure principles.

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