USAS

We rate Americas Gold & Silver Corp (USAS) as a Buy with a composite score of 68.9/100 at a current price of $8.83. The stock scores above average across the majority of our six quantitative factors and ranks #127 out of 7,333 stocks in our universe, reflecting a favorable risk-reward profile.

The rating is primarily driven by strength in momentum (98th percentile) and value (80th percentile), which together account for the majority of the composite score. Offsetting weakness in stability (19th percentile) and investment (36th percentile) tempers our overall conviction. We assign a No Moat rating (33/100), High uncertainty, and Poor capital allocation.

Key items to watch: whether strong momentum is fundamentally supported by revenue trends; 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.

Americas Gold & Silver Corp holds a top-quartile position (#12 of 50) within the Mining sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 68.9/100 places it at rank #127 in our full 7,333-stock universe. At $93M in market capitalization, Americas Gold & Silver Corp is a small-cap player in the Mining space, which limits certain scale advantages but may allow for more agile strategic execution.

Despite positive momentum (98th percentile), revenue contraction of -82% creates a divergence between price action and fundamental trajectory. This divergence suggests either that the market is looking through near-term weakness or that technical factors are temporarily inflating the stock. Investors should assess whether the revenue decline reflects cyclical weakness or structural challenges.

The margin cascade tells an important story: gross margins of 551% (+508.3pp vs sector) narrow to operating margins of 319% (+307.1pp vs sector) and net margins of -280.7%, yielding a gross-to-net conversion rate of -51%. 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 $8.83, Americas Gold & Silver Corp appears undervalued relative to its fundamentals. Our value factor score of 80/100 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 52.3x (at a premium), P/B of 47.2x, P/S of 36.2x. 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 Americas Gold & Silver Corp. Key risk factors include current negative profitability (net margin -280.7%), below-average price stability (19th 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 -280.7%); below-average price stability (19th 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 19th percentile and quality factor at the 74th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: healthy gross margins of 551% provide a buffer against cost pressures; conservative leverage (26% 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 Americas Gold & Silver Corp's capital allocation as Poor. Key concerns include low returns on equity (-365.9%), negative profitability, weak asset returns (ROA -101.5%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — Americas Gold & 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, Americas Gold & Silver Corp receives a Buy rating with a composite score of 68.9/100 (rank #127 of 7,333). Our quantitative framework assigns a No Moat (33/100, trend: stable), High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 62/100.

Our analysis supports a constructive view on Americas Gold & Silver Corp. The combination of the current valuation, high uncertainty, and poor 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.