First Majestic Surges 104.7% in 6 Months: Is the Stock Still Worth Buying?

Core Insights - First Majestic Silver Corp. (AG) has seen a significant stock increase of 104.7% over the past six months, outperforming the S&P 500 and industry growth rates of 1.3% and 75.6%, respectively [1][2]. Company Performance - AG's stock closed at $21.74, which is below its 52-week high of $32.04 but well above its 52-week low of $5.19 [2]. - The company has outperformed peers such as Avino Silver & Gold Mines (49% return) and Vizsla Silver Corp. (9.9% loss) during the same period [2]. Production and Demand Factors - Silver prices are expected to remain strong due to a persistent market deficit, high industrial demand in solar and AI sectors, and strong safe-haven demand, with electronics and solar energy accounting for over half of global silver demand [5]. - In Q4 2025, AG increased its total production to 7.8 million silver-equivalent (AgEq) ounces, which includes a record 4.2 million silver ounces and 41,417 gold ounces, reflecting a 37% year-over-year growth in AgEq ounces produced and a 77% surge in silver production [6]. - The company acquired a 70% interest in the Cerro Los Gatos Silver underground mine, enhancing its position as an intermediate primary silver producer [7]. Business Segments - AG's First Mint LLC business achieved record results in Q4 2025, with revenues increasing by 149.5% to $22.7 million, supported by the sale of 325,143 ounces of silver, which accounted for approximately 8% of the company's total silver production [8][9]. Operational Strength - AG operates four mines in Mexico, including Santa Elena, Los Gatos, San Dimas, and La Encantada, all of which are performing strongly despite tax-related issues, contributing significantly to total silver-equivalent ounces production [10]. Earnings Estimates - The Zacks Consensus Estimate for AG's 2026 earnings has increased by 76.5% to $0.60 per share, while the estimate for 2027 earnings has risen by 82% to $1.11 per share [11]. Valuation Concerns - AG's stock is trading at a forward 12-month price-to-earnings (P/E) ratio of 30.72X, which is higher than the industry average of 16.88X and compared to Avino Silver's 26.37X [12]. Investment Outlook - AG's market leadership, strong operational performance, and acquired assets provide a competitive advantage to capitalize on long-term demand in silver and gold markets, supported by a solid pipeline of projects [14]. - Despite its high valuation, positive analyst sentiment and robust growth prospects suggest it may be an opportune time for potential investors to consider AG [15].