ASM

We rate AVINO SILVER & GOLD MINES LTD (ASM) as a Buy with a composite score of 67.3/100 at a current price of $8.98. The stock scores above average across the majority of our six quantitative factors and ranks #187 out of 7,333 stocks in our universe, reflecting a favorable risk-reward profile.

The rating is primarily driven by strength in momentum (95th percentile) and quality (78th percentile), which together account for the majority of the composite score. Offsetting weakness in stability (21th percentile) and investment (33th percentile) tempers our overall conviction. We assign a Narrow Moat rating (59/100), High uncertainty, and Exemplary capital allocation.

Key items to watch: sustainability of the current growth rate. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

AVINO SILVER & GOLD MINES LTD holds an above-average position (#19 of 50) within the Mining sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 67.3/100 places it at rank #187 in our full 7,333-stock universe. At $113M in market capitalization, AVINO SILVER & GOLD MINES LTD is a small-cap player in the Mining space, which limits certain scale advantages but may allow for more agile strategic execution.

The near-term outlook is constructive, with revenue growing at 54% and momentum in the 95th percentile confirming positive market sentiment and institutional accumulation. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy. Investment factor at the 33th percentile indicates reinvestment patterns that investors should monitor for sustainability.

The margin cascade tells an important story: gross margins of 32% (-11.2pp vs sector) narrow to operating margins of 36% (+23.9pp vs sector) and net margins of 12.6%, yielding a gross-to-net conversion rate of 39%. This efficient conversion suggests well-controlled operating costs and limited margin leakage between the gross and net levels.

At a current price of $8.98, AVINO SILVER & GOLD MINES LTD appears undervalued relative to its fundamentals. Our value factor score of 73/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The stock screens as attractively priced on a majority of these measures, suggesting the market may be underappreciating the underlying fundamentals.

The stock currently trades at EV/EBITDA of 13.0x (at a premium), P/B of 11.4x, P/S of 5.6x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.

We assign a High uncertainty rating to AVINO SILVER & GOLD MINES LTD. Key risk factors include elevated market sensitivity (beta of 1.41), below-average price stability (21th percentile). The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.

Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 1.41); below-average price stability (21th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 21th percentile and quality factor at the 78th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: conservative leverage (1% D/E) limits balance sheet risk. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.

We rate AVINO SILVER & GOLD MINES LTD's capital allocation as Exemplary. Management demonstrates a strong track record of balancing reinvestment with shareholder returns, evidenced by returns on equity of 25.8%, disciplined leverage (1% D/E). Exemplary allocators typically generate returns on equity above 20% while maintaining debt-to-equity below 50% — AVINO SILVER & GOLD MINES LTD meets this high bar.

The balance sheet remains conservatively managed, providing financial flexibility for opportunistic investments while maintaining a margin of safety for shareholders. We note that the combination of 21.8% return on assets and controlled leverage suggests management is deploying capital at rates well above the cost of capital — the hallmark of exemplary stewardship.

In summary, AVINO SILVER & GOLD MINES LTD receives a Buy rating with a composite score of 67.3/100 (rank #187 of 7,333). Our quantitative framework assigns a Narrow Moat (59/100, trend: stable), High uncertainty, and Exemplary capital allocation. The average factor score across quality, value, momentum, stability, and investment is 60/100.

Our analysis supports a constructive view on AVINO SILVER & GOLD MINES LTD. The combination of identifiable competitive advantages, high uncertainty, and exemplary capital allocation creates a risk-reward profile that favors accumulation at current levels. We recommend investors consider adding this name to portfolios aligned with the stock's risk profile.