EXK

We rate ENDEAVOUR SILVER CORP (EXK) as a Hold with a composite score of 51.4/100 at a current price of $13.16. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.

The rating is primarily driven by strength in momentum (90th percentile) and quality (45th percentile), which together account for the majority of the composite score. Offsetting weakness in stability (25th percentile) and investment (28th percentile) tempers our overall conviction. We assign a Narrow Moat rating (42/100), High uncertainty, and Poor capital allocation.

Key items to watch: the path to profitability. 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.

ENDEAVOUR SILVER CORP holds a top-quartile position (#0 of 50) within the Mining sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 51.4/100 places it at rank #1798 in our full 7,333-stock universe. At $794M in market capitalization, ENDEAVOUR SILVER CORP is a small-cap player in the Mining space, which limits certain scale advantages but may allow for more agile strategic execution.

The outlook is moderately positive, with revenue expanding at 6% and favorable momentum (90th percentile) reflecting constructive market sentiment. The business shows steady execution, though the growth rate is below the levels typically associated with high-conviction growth stories. Momentum confirmation provides support for the current price level.

The margin cascade tells an important story: gross margins of 19% (-23.8pp vs sector) narrow to operating margins of 3% (-9.1pp vs sector) and net margins of -14.5%, yielding a gross-to-net conversion rate of -75%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.

At a current price of $13.16, ENDEAVOUR SILVER CORP is trading at a premium to fundamental value. Our value factor score of 31/100 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 premium valuation implies the market is pricing in significant future growth or quality improvements that are not yet fully reflected in current fundamentals.

The stock currently trades at EV/EBITDA of 483.0x (at a premium), P/B of 7.8x, P/S of 4.4x. 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 ENDEAVOUR SILVER CORP. Key risk factors include current negative profitability (net margin -14.5%), below-average price stability (25th 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: current negative profitability (net margin -14.5%); below-average price stability (25th 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 25th percentile and quality factor at the 45th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: conservative leverage (25% 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 ENDEAVOUR SILVER CORP's capital allocation as Poor. Key concerns include low returns on equity (-26.0%), negative profitability, weak asset returns (ROA -17.5%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — ENDEAVOUR SILVER CORP significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.

Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.

In summary, ENDEAVOUR SILVER CORP receives a Hold rating with a composite score of 51.4/100 (rank #1798 of 7,333). Our quantitative framework assigns a Narrow Moat (42/100, trend: stable), High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 44/100.

Our analysis supports a neutral stance on ENDEAVOUR SILVER CORP. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.