CDE

Analysis of Coeur Mining (CDE)

Technical Perspective CDE shows explosive short-term momentum, with a 19.91% surge over the past month pushing it near 52-week highs. While this reflects strong bullish sentiment, the stock appears overbought and may face near-term pullback risks due to elevated volatility (beta of 1.24) and its substantial historical drawdown of -40%.

Fundamental Quality The company exhibits robust operational improvements, with Q3 revenue up 15% sequentially and net profit margins expanding significantly to 48%. Its financial health is solid, featuring low debt (8.3% ratio), strong interest coverage (28x), and healthy cash flow generation (43% operating cash flow to sales).

Valuation & Risk Valuation sends mixed signals: a high trailing P/E of 89.96 contrasts with a forward P/E of 11.17, while an exceptionally low PEG ratio of 0.04 implies strong growth justification. Primary risks include high volatility and sector-specific vulnerabilities, though conservative leverage offers some cushion against downturns.

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Recommendation: **Buy**

Coeur Mining presents a compelling opportunity driven by strong operational momentum, improved profitability, and a conservative balance sheet. While the stock is technically overbought and carries above-average volatility, its low PEG ratio and forward earnings potential justify consideration on pullbacks. Investors should monitor for entry points below current highs to capitalize on its growth trajectory while managing near-term volatility risks.

*This is not investment advice, for reference only.*

RockFlow Model Forecast: Three Scenarios for 2026

Of course. Below is a 12-month investment outlook for Coeur Mining (CDE).

12-Month Outlook for CDE

Key Catalysts: The primary drivers will be the company's ability to maintain its strong operational momentum, including continued revenue growth and robust cash flow generation. Further expansion of its impressive 48% net profit margin will be a critical factor for upward price movement, as will sustained high silver and gold prices, which are fundamental to its mining operations.

Potential Risks: The stock is currently technically overbought after a significant surge, increasing the risk of a near-term pullback. Its high beta (1.24) indicates it will likely experience greater volatility than the broader market. Sector-specific risks, such as fluctuations in commodity prices and operational challenges, also remain persistent headwinds.

Target Price Range: While a specific analyst target is not provided, the attractive forward P/E of 11.17 and an exceptionally low PEG ratio of 0.04 suggest significant growth potential is not yet fully priced in. A conservative 12-month target range could be $24 - $28, contingent on the company delivering on its operational targets and commodity prices remaining supportive.

Wall Street Consensus

Most Wall Street analysts are optimistic about CDE's 12-month outlook, with consensus target around $20.76, indicating expected upside potential.

Overall, CDE has investment potential but also faces challenges. Here are key factors to weigh before investing.

Overall Assessment: CDE has demonstrated exceptionally strong recent performance, with a dramatic 19.91% surge over the past month significantly boosting its 3-month return to 4.54%, indicating a powerful short-term bullish reversal after a period of weakness evidenced by its substantial 1-year maximum drawdown of -40.17%.

Short-term Performance: The stock is exhibiting explosive momentum, vastly outperforming the broader market over both the 1-month and 3-month periods; its positive relative strength of 1.17% confirms this alpha generation, while its high beta of 1.239 suggests these gains are accompanied by above-average volatility compared to the market.

Current Position: With the current price of $20.96 positioned near the top of its 52-week range ($4.58 - $23.62), the stock is approaching its 52-week high, indicating it is in an overbought territory; while this reflects strong bullish sentiment, it also suggests limited near-term upside and increased susceptibility to a pullback from these elevated levels.

Revenue & Profitability CDE demonstrated strong revenue growth with Q3 2025 revenue increasing 15% sequentially to $555 million from $481 million in Q2. Profitability improved significantly with net profit margin expanding to 48% in Q3 from 15% in Q2, driven by a substantial tax benefit and improved operational leverage. The company maintained healthy gross margins above 55%, indicating solid pricing power in its operations.

Financial Health The company maintains conservative leverage with a low debt ratio of 8.3% and strong interest coverage of 28x. Current ratio of 1.47 and quick ratio of 1.00 demonstrate adequate liquidity, while the cash conversion cycle of 18 days reflects efficient working capital management. Operating cash flow to sales ratio of 43% indicates strong cash generation from core operations.

Operational Efficiency CDE shows moderate operational efficiency with ROE of 8.6% and asset turnover of 0.12. The company's fixed asset turnover of 0.20 suggests room for improvement in fixed asset utilization. Operating cycle of 68 days is reasonable, though inventory turnover of 1.6 times annually indicates potential for better inventory management optimization.

Valuation Level: CDE's TTM PE ratio of 89.96 appears elevated, though the forward PE of 11.17 suggests significantly improved earnings expectations. The high PB (4.91) and PS (10.08) ratios indicate premium pricing relative to the company's book value and sales. However, the remarkably low PEG ratio of 0.04 suggests substantial growth potential that may justify current valuation levels when considering future earnings expansion.

Peer Comparison: Unable to conduct meaningful peer comparison due to unavailability of industry average data. For proper contextual analysis, comparative metrics against gold mining or precious metals industry peers would be required to assess whether CDE's valuation multiples represent a premium or discount to sector norms. The absence of benchmark data limits the ability to determine relative valuation positioning.

Volatility Risk

CDE demonstrates elevated volatility with a beta of 1.239, indicating it is approximately 24% more volatile than the broader market. This heightened sensitivity to market movements is further evidenced by a significant one-year maximum drawdown of -40.17%, highlighting considerable downside risk during unfavorable market conditions.

Other Risks

While the absence of reported short interest suggests a lack of strong negative speculative sentiment, other risks such as liquidity constraints remain a consideration. The stock's pronounced volatility and substantial drawdown underscore inherent operational or sector-specific vulnerabilities that warrant close monitoring.