# Fortuna Silver Mines (FSM.US)

Canonical: https://gigainvestors.com/s/FSM

Analysis as of: 2026-10-16T07:28:39.077Z. Financial observations: FY2007–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $10.54 per share; close as of 2026-10-15.

Estimated value: low $7.24 per share, central $9.49 per share, high $10.80 per share. Buy at or below the central value $9.49 per share. Valuation as of 2026-10-16T07:28:39.077Z; scenarios are not confidence intervals.

Expected annual return: 9.2% at the stated quote. About 9.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 2

- Operating margin variation: 0.84×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.23×

- FY2017: 0.41×

- FY2018: 0.23×

- FY2019: 0.13×

- FY2020: 0.21×

- FY2021: 0.23×

- FY2022: -0.17×

- FY2023: -0.00×

- FY2024: 0.34×

- FY2025: 0.39×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 6.9%

- ROIC, second-lowest year: -0.0%

- Typical minus recent gross margin: -11.9 pp

- Typical gross margin (annual median): 37.5%

- Recent gross margin (lower of latest and 3-year median): 49.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 28.2%

- ROIC including acquisitions, ten-year median: 3.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 9.3%

- FY2017: 18.3%

- FY2018: 7.7%

- FY2019: 3.1%

- FY2020: 4.8%

- FY2021: 6.1%

- FY2022: -6.4%

- FY2023: -0.0%

- FY2024: 11.2%

- FY2025: 19.3%

### economics: pass

- Owner earnings / net income, 5-yr: 0.96×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $297M

- Net income, five-year total: $310M

- Return on incremental invested capital: 50.7%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 2.5 pp

- Working capital / revenue, final three-year average: 15.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 0.78×

- FY2025: 1.05×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 9.3% vs 11.2%

- Per-share earnings: 0.13 to 0.41 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 10.0%

- Ordinary dilution, 5-year annual growth: 12.5%

- Market cap gain: $2.5B

- Cumulative retained earnings: $424M

- Diluted shares, 10-year annual growth: 10.0%

- Diluted shares, 5-year annual growth: 12.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 15.7%

- Per-share value change: $0.28

- Per-share value, starting three-year median: $0.13

- Per-share value, ending three-year median: $0.41

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 1.1%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: $0

- Cumulative net income, 10 years: $473M

- ROIC, first three-year median: 9.3%

- ROIC, last three-year median: 11.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.13

- FY2017: $0.42

- FY2018: $0.21

- FY2019: $0.14

- FY2020: $0.12

- FY2021: $0.23

- FY2022: -$0.44

- FY2023: -$0.17

- FY2024: $0.41

- FY2025: $0.90

### accounting: pass

- Sloan accruals: -7.2%

- Receivables to sales index (DSRI): 0.51×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.57×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.2%

- FY2017: -0.6%

- FY2018: -6.3%

- FY2019: -4.2%

- FY2020: -6.8%

- FY2021: -4.4%

- FY2022: -17.2%

- FY2023: -17.9%

- FY2024: -11.2%

- FY2025: -7.2%

## Holders

- [Sarah Ketterer](https://gigainvestors.com/CAU): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 23% since Feb 2026 · "Cash Cost per Ounce: Reduced to $929 from $1,015 in Q4." (finance.yahoo.com, May 2025) · sales +39.8%

Story as of 2026-10-16T09:58:47.399Z; price observation 2026-10-15.

Price needs cash profits to grow 8.1% a year for ten years

- 2026-02-21: Fortuna Mining (FSM) Climbs 12.6% on Higher Gold Resource ([finance.yahoo.com](https://finance.yahoo.com/news/fortuna-mining-fsm-climbs-12-161436998.html))

### Sales · FY2024–2025

sales +39.8%; source https://www.sec.gov/Archives/edgar/data/1341335/000110465926035151/tmb-20251231x40f.htm; observed 2026-03-26.

- FY2016: $210M 

- FY2017: $268M 

- FY2018: $263M 

- FY2019: $257M 

- FY2020: $279M 

- FY2021: $600M 

- FY2022: $681M 

- FY2023: $842M 

- FY2024: $677M 

- FY2025: $947M 

### Gross margin · FY2025

gross margin 49.4%; source https://www.sec.gov/Archives/edgar/data/1341335/000110465926035151/tmb-20251231x40f.htm; observed 2026-03-26.

- FY2016: 38.3% 

- FY2017: 40.9% 

- FY2018: 36.7% 

- FY2019: 32.9% 

- FY2020: 39.5% 

- FY2021: 34.3% 

- FY2022: 21.5% 

- FY2023: 22.6% 

- FY2024: 50.7% 

- FY2025: 49.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in gold; annual sales are USD 947.1 million.

- Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001341335.json#0001104659-26-035151 (filed 2026-03-26); FY2025: revenue 947059000; grossProfit 467979285; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 22.6% to 50.7% during 2023–25; it earns 6.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); FY2023: grossProfit / revenue = 22.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); FY2024: grossProfit / revenue = 50.7%.

- Source: https://www.sec.gov/Archives/edgar/data/1341335/000110465926035151/tmb-20251231x40f.htm (filed 2026-03-26); FY2025: grossProfit / revenue = 49.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); 10-year return on capital observations [[2016,0.09258384929135245],[2017,0.18329976407799994],[2018,0.07734767025089606],[2019,0.03076549341394947],[2020,0.04825975515159691],[2021,0.06116849509360075],[2022,-0.06385756106551439],[2023,-0.00023393068003815296],[2024,0.11159262179050279],[2025,0.19327159281773768]]; median 0.06925808267224841. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 10 years; bought back USD 10.4 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); FY2016: growth capex 6945160; upkeep 33283840; owner earnings 17858000. Growth capex / owner earnings = 0.3889102923059693.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); FY2017: growth capex 2300174; upkeep 44759826; owner earnings 66305000. Growth capex / owner earnings = 0.034690807631400346.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); FY2020: growth capex 47625000; upkeep 45408000; owner earnings 21553000. Growth capex / owner earnings = 2.209669187584095.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); FY2021: growth capex 30017000; upkeep 122272000; owner earnings 57877000. Growth capex / owner earnings = 0.5186343452494082.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); FY2024: growth capex 0; upkeep 203778000; owner earnings 100473000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1341335/000110465926035151/tmb-20251231x40f.htm (filed 2026-03-26); FY2025: growth capex 0; upkeep 181120053; owner earnings 317614354. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1341335/000110465926035151/tmb-20251231x40f.htm (filed 2026-03-26); FY2025: cash repurchases 10446729 USD.

### Are managers owners

Insiders own 0.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FSM.US SharesStats.PercentInsiders = 0.617 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 8.1% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); Ten-year compound average after fade. Initial solved rate 0.10378281226298414. Price 10.54; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.33891411983541825 → FY2025 0.9483969769719555. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $6.84 per share

- 2016-11: $6.07 per share

- 2016-12: $5.65 per share

- 2017-01: $6.24 per share

- 2017-02: $5.64 per share

- 2017-03: $5.20 per share

- 2017-04: $4.61 per share

- 2017-05: $4.71 per share

- 2017-06: $4.89 per share

- 2017-07: $4.99 per share

- 2017-08: $4.83 per share

- 2017-09: $4.38 per share

- 2017-10: $4.22 per share

- 2017-11: $4.20 per share

- 2017-12: $5.22 per share

- 2018-01: $4.80 per share

- 2018-02: $4.51 per share

- 2018-03: $5.21 per share

- 2018-04: $5.69 per share

- 2018-05: $5.53 per share

- 2018-06: $5.68 per share

- 2018-07: $5.47 per share

- 2018-08: $4.58 per share

- 2018-09: $4.37 per share

- 2018-10: $3.79 per share

- 2018-11: $3.21 per share

- 2018-12: $3.64 per share

- 2019-01: $4.03 per share

- 2019-02: $3.74 per share

- 2019-03: $3.35 per share

- 2019-04: $3.07 per share

- 2019-05: $2.59 per share

- 2019-06: $2.85 per share

- 2019-07: $3.76 per share

- 2019-08: $4.14 per share

- 2019-09: $3.09 per share

- 2019-10: $3.19 per share

- 2019-11: $3.29 per share

- 2019-12: $4.08 per share

- 2020-01: $3.92 per share

- 2020-02: $2.95 per share

- 2020-03: $2.31 per share

- 2020-04: $3.00 per share

- 2020-05: $4.49 per share

- 2020-06: $5.09 per share

- 2020-07: $6.72 per share

- 2020-08: $7.27 per share

- 2020-09: $6.36 per share

- 2020-10: $6.62 per share

- 2020-11: $6.33 per share

- 2020-12: $8.24 per share

- 2021-01: $7.78 per share

- 2021-02: $7.53 per share

- 2021-03: $6.47 per share

- 2021-04: $6.03 per share

- 2021-05: $6.95 per share

- 2021-06: $5.55 per share

- 2021-07: $4.75 per share

- 2021-08: $4.39 per share

- 2021-09: $3.93 per share

- 2021-10: $4.86 per share

- 2021-11: $3.48 per share

- 2021-12: $3.90 per share

- 2022-01: $3.42 per share

- 2022-02: $3.70 per share

- 2022-03: $3.81 per share

- 2022-04: $3.48 per share

- 2022-05: $3.27 per share

- 2022-06: $2.84 per share

- 2022-07: $2.85 per share

- 2022-08: $2.30 per share

- 2022-09: $2.52 per share

- 2022-10: $2.78 per share

- 2022-11: $3.73 per share

- 2022-12: $3.75 per share

- 2023-01: $3.85 per share

- 2023-02: $3.23 per share

- 2023-03: $3.82 per share

- 2023-04: $3.73 per share

- 2023-05: $3.31 per share

- 2023-06: $3.24 per share

- 2023-07: $3.55 per share

- 2023-08: $3.10 per share

- 2023-09: $2.72 per share

- 2023-10: $2.81 per share

- 2023-11: $3.90 per share

- 2023-12: $3.86 per share

- 2024-01: $3.03 per share

- 2024-02: $2.71 per share

- 2024-03: $3.73 per share

- 2024-04: $4.54 per share

- 2024-05: $6.24 per share

- 2024-06: $4.89 per share

- 2024-07: $4.83 per share

- 2024-08: $4.59 per share

- 2024-09: $4.63 per share

- 2024-10: $4.97 per share

- 2024-11: $4.78 per share

- 2024-12: $4.29 per share

- 2025-01: $5.07 per share

- 2025-02: $4.32 per share

- 2025-03: $6.10 per share

- 2025-04: $6.25 per share

- 2025-05: $5.85 per share

- 2025-06: $6.54 per share

- 2025-07: $6.45 per share

- 2025-08: $7.70 per share

- 2025-09: $8.96 per share

- 2025-10: $8.27 per share

- 2025-11: $10.12 per share

- 2025-12: $9.81 per share

- 2026-01: $9.78 per share

- 2026-02: $13.66 per share

- 2026-03: $9.93 per share

- 2026-04: $9.65 per share

- 2026-05: $10.06 per share

- 2026-06: $8.45 per share

- 2026-07: $8.43 per share

- 2026-08: $12.08 per share

- 2026-09: $11.24 per share

- 2026-10: $10.92 per share

## Annual estimated value (USD per share)

- FY2016: low $2.29 per share, central $2.49 per share, high $2.74 per share

- FY2017: low $3.27 per share, central $4.11 per share, high $4.59 per share

- FY2018: low $2.86 per share, central $3.66 per share, high $4.13 per share

- FY2020: low $1.95 per share, central $2.13 per share, high $2.36 per share

- FY2021: low $2.55 per share, central $3.03 per share, high $3.47 per share

- FY2024: low $2.80 per share, central $3.43 per share, high $3.90 per share

- FY2025: low $5.32 per share, central $6.91 per share, high $7.84 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 40-F filing](https://www.sec.gov/Archives/edgar/data/1341335/000110465926035151/tmb-20251231x40f.htm); period 2025-12-31, filed 2026-03-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.