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First Majestic Silver (TSX:AG) posted a turnaround in its financial performance, becoming profitable over the past year with margins improving alongside this shift. The company’s earnings are forecast to jump at a pace of 32.3% per year over the next three years, while revenue is projected to rise 16.3% annually. Both figures are well ahead of the Canadian market’s growth rates. Trading at CA$15.05 per share, AG sits noticeably below its independently assessed fair value estimate of CA$44.45, which points to significant valuation upside for investors looking for growth and quality.

See our full analysis for First Majestic Silver.

Next, we’ll put these headline earnings and outlook numbers head-to-head with Simply Wall St’s most-followed narratives, highlighting the themes that run with the results and those that are set to be re-examined.

See what the community is saying about First Majestic Silver

• Analysts expect profit margins to move from 1.8% currently to 8.0% over the next three years, indicating room for operational efficiency gains if targets are met.

• Consensus narrative highlights:

  • Operational synergies from the integration of Cerro Los Gatos, combined with procurement and efficiency improvements, are expected to lower all-in sustaining costs. This is anticipated to help margins track the projected rise.

  • Analysts warn that persistently high operating and capital expenditures, especially at key mines like San Dimas, could put upward pressure on costs. This would give less margin for error if forecasted production or silver prices do not materialize.

• The number of shares outstanding is expected to grow by 7.0% per year over the next three years, as the company funds expanded exploration and new developments.

• Consensus narrative notes:

  • While ongoing investment in large new ore bodies (such as Navidad and Santo Niño) is vital for extending reserve life and supporting growth, execution risks such as underperformance at new projects or delayed production could make dilution more costly for shareholders if results disappoint.

  • Concentration of operations in Mexico exposes the company to region-specific risks like labor unrest and regulatory shifts. These factors could challenge both growth and the value of new shares as the business expands.

• First Majestic trades at CA$15.05, which is well below its independently assessed DCF fair value of CA$44.45, but commands a higher price-to-sales ratio than the broader Canadian metals and mining industry.

• According to the analysts’ consensus view:

  • The consensus price target of CA$13.88 sits just 5.7% above the current share price, suggesting analysts see the company as fairly priced. However, the much higher DCF fair value signals a potential opportunity if ambitious growth targets are met and margin expansion is realized.

  • Despite this, the premium to industry multiples suggests that investors are pricing in First Majestic’s stronger growth prospects and improved balance sheet. The stock will need to deliver on forecasts to justify staying above peers.

  To see the full outlook that balances growth, risks, and valuation, check the consensus narrative for the story behind these numbers. 📊 Read the full First Majestic Silver Consensus Narrative.

Kodiak Gas Services (KGS) capped off the year with a 65% jump in earnings, sharply reversing a prior five-year stretch that saw earnings fall by an average of 8.9% annually. Net profit margins improved to 6.5%, up from 5.1% last year. Analysts forecast earnings growth to continue at 18% per year. With shares trading at $33.91, well below the consensus price target of $66.60, the latest results have certainly caught investor attention. However, revenue growth is projected to lag the broader market and recent results were clouded by a one-off $116.0 million loss.

See our full analysis for Kodiak Gas Services.

Next, we set these headline earnings numbers against the community narratives that drive investor sentiment, to see what holds up and what gets challenged along the way.

See what the community is saying about Kodiak Gas Services

• Kodiak Gas Services trades at a Price-to-Earnings ratio of 35.3x, above both peer (34.3x) and industry (16.1x) averages, making its shares look expensive against comparable companies despite the recent earnings bump.

• Analysts’ consensus view spotlights the tension that while the stock is trading at $33.91 (below both the analyst target of $44.09 and the DCF fair value of $66.60), its premium valuation relative to peers hinges on sustaining margin improvements and growing into lower multiples over time.

  • Kodiak would need to nearly triple profit margins, from 6.5% now to 19.3% by 2028, for its price to align with consensus forecasts.

  • The expectation that earnings will reach $293.4 million over the next few years underpins the analyst target, but that scenario assumes a much lower future PE (17.2x) than today, which may or may not materialize.

• To see how the balanced perspective stacks up to the latest results and expectations, check the full consensus narrative and see what might shift next. 📊 Read the full Kodiak Gas Services Consensus Narrative.

• Although net profit margin has risen to 6.5% from 5.1% last year, Kodiak reported a one-off $116.0 million loss, highlighting volatility beneath the improving numbers.

• Consensus narrative notes that analysts still expect profit margins to climb sharply, aided by efficiencies from technology investments and high fleet utilization. However, persistent labor tightness and concentration in the Permian Basin pose risks to margin durability.

  • Heavy reliance on growing natural gas demand and new large horsepower projects creates upside, but exposes results to boom-bust cycles and possible future margin compression if the environment sours.

  • The company’s drive to focus on high-margin compression units at premium rates supports further margin gains, though concentrated exposure may limit diversification and amplify swings.