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1. Company Snapshot

1.a. Company Description

A-Mark Precious Metals, Inc., together with its subsidiaries, operates as a precious metals trading company.It operates in three segments: Wholesale Sales & Ancillary Services, Direct-to-Consumer, and Secured Lending.The Wholesale Sales & Ancillary Services segment sells gold, silver, platinum, and palladium in the form of bars, plates, powders, wafers, grains, ingots, and coins.


This segment also offers various ancillary services, including financing, storage, consignment, logistics, and various customized financial programs; and designs and produces minted silver products.The Direct-to-Consumer segment provides access to an array of gold, silver, copper, platinum, and palladium products through its websites and marketplaces.It operates five company-owned websites targeting specific niches within the precious metals retail market.


This segment also operates as a direct retailer of precious metals to the investor community and markets its precious metal products on television, radio, and the internet, as well as through customer service outreach.The Secured Lending segment originates and acquires commercial loans secured by bullion and numismatic coins; and serves coin and precious metal dealers, investors, and collectors.The company serves customers, including financial institutions, bullion retailers, industrial manufacturers and fabricators, sovereign mints, refiners, coin and metal dealers, investors, collectors, and e-commerce and other retail customers.


It has operations in the United States, rest of North America, Europe, the Asia Pacific, Africa, and Australia.A-Mark Precious Metals, Inc.was founded in 1965 and is headquartered in El Segundo, California.

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1.b. Last Insights on AMRK

A-Mark Precious Metals' recent performance was negatively driven by a Q2 earnings miss, with diluted earnings per share of $0.27, missing the expected $0.86 per share. The company reported net income of $6.6 million and non-GAAP EBITDA of $16.2 million in Q2 FY2025. Additionally, the company's acquisition of Spectrum Group International, Inc. for $92 million may have raised concerns among investors. The investigation by Kaskela Law LLC into A-Mark's business practices may also have contributed to the negative sentiment.

1.c. Company Highlights

2. A-Mark Precious Metals' Q1 FY2026 Earnings: A Strong Start with Acquisition-Driven Growth

A-Mark Precious Metals reported a robust fiscal first quarter of 2026, with revenue increasing 36% to $3.68 billion, driven by a 27.6% increase in revenue excluding forward sales. Gross profit rose 68% to $72.9 million, while SG&A expenses increased 125% to $59.8 million due to acquisition-related expenses and increased compensation. The company's earnings per share (EPS) came in at $0.2, significantly lower than the estimated $0.86. The discrepancy between actual and estimated EPS may be attributed to the increased expenses related to the acquisition of Monex Deposit Company.

Publication Date: Nov -26

📋 Highlights
  • Acquisition of Monex and Rebranding:: A-Mark acquired Monex Deposit Company and plans to rebrand under gold.com, aiming to enhance direct-to-consumer presence with Monex's 4.3 million customers.
  • Q1 2026 Revenue Surge:: Revenue jumped 36% to $3.68 billion, with gross profit soaring 68% to $72.9 million, driven by a 27.6% rise in non-forward sales revenue.
  • DTC Growth Metrics:: Gold ounces sold increased 10% to 439,000, while direct-to-consumer customers rose 37% to 4.3 million, reflecting expanded market reach.
  • SG&A Expenses Spike:: Operating costs surged 125% to $59.8 million due to acquisition-related expenses and higher compensation, signaling short-term integration challenges.
  • Gold Demand Drivers:: CEO Roberts cited central bank buying and geopolitical factors (e.g., US-China trade tensions) as key drivers of gold demand, with spot prices rising amid increased dollar inflows.

Operational Highlights

The company's key operating metrics demonstrated significant growth, with a 10% increase in gold ounces sold to 439,000 and a 37% increase in total customers in the direct-to-consumer segment to approximately 4.3 million. CEO Greg Roberts highlighted the company's plans to expand into adjacent categories such as wine and sports cards, indicating a strategic effort to diversify and grow the business.

Acquisition and Integration

A-Mark's acquisition of Monex Deposit Company is expected to strengthen its direct-to-consumer presence, with Monex's well-established brand and customer base. Roberts emphasized the company's efforts to integrate and reduce redundancies, citing the rebranding to gold.com and the goal of making expenses more efficient. The acquisition is expected to drive operational synergies and enhance streamlined operations.

Valuation and Outlook

With a P/S Ratio of 0.06 and an EV/EBITDA of 14.42, the company's valuation appears reasonable, considering its growth prospects. Analysts estimate next year's revenue growth at 9.6%. However, the company's EPS shortfall in the current quarter may raise concerns about its ability to meet expectations. Roberts expressed caution about the year ahead, but stated that the company is well-positioned to perform across all market environments.

Gold Demand and Market Trends

Roberts discussed the gold demand, stating that it has been incredible over the last 9-12 months, driven by central bank buying and other governments. He noted that the company takes a long-term view and is not looking at things on a week-to-week basis, attributing the rebound in September and October to a combination of factors, including the back-and-forth trade war with China and increased awareness of precious metals in the mainstream media.

3. NewsRoom

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New Strong Sell Stocks for Nov. 13

Nov -13

Source: zacks.com

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A-Mark Precious Metals (AMRK) Misses Q1 Earnings Estimates

Nov -07

Source: zacks.com

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A-Mark Precious Metals, Inc. (AMRK) Q1 2026 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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A-Mark Precious Metals to Become Gold.com and Transfer to the New York Stock Exchange

Nov -06

Source: globenewswire.com

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D.A. Davidson & CO. Reduces Holdings in A-Mark Precious Metals, Inc. $AMRK

Oct -31

Source: defenseworld.net

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A-Mark Precious Metals Announces Quarterly Cash Dividend

Oct -29

Source: globenewswire.com

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A-Mark Precious Metals Sets Fiscal First Quarter Earnings Call for Thursday, November 6th at 4:30 p.m. ET

Oct -20

Source: globenewswire.com

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Are Consumer Discretionary Stocks Lagging AMark Precious Metals (AMRK) This Year?

Oct -17

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.43%)

6. Segments

Wholesale Sales & Ancillary Services

Expected Growth: 8%

A-Mark Precious Metals' 8% growth in Wholesale Sales & Ancillary Services is driven by increasing demand for precious metals, strategic partnerships, and expansion into new markets. Additionally, the company's diversified product offerings, competitive pricing, and efficient supply chain management contribute to its growth.

Direct-to-Consumer

Expected Growth: 10%

A-Mark Precious Metals' Direct-to-Consumer segment growth is driven by increasing online bullion sales, strategic marketing efforts, and expanding product offerings. Additionally, rising gold and silver prices, coupled with growing investor demand for physical precious metals, contribute to the 10% growth rate.

7. Detailed Products

Gold Coins

A-Mark Precious Metals offers a wide range of gold coins from renowned mints around the world, including the American Gold Eagle, Canadian Gold Maple Leaf, and South African Krugerrand.

Silver Coins

A-Mark Precious Metals provides a variety of silver coins, including the American Silver Eagle, Canadian Silver Maple Leaf, and Mexican Silver Libertad.

Platinum and Palladium Products

A-Mark Precious Metals offers a range of platinum and palladium products, including coins, bars, and rounds from leading mints and refineries.

Bars and Rounds

A-Mark Precious Metals provides a wide selection of gold, silver, platinum, and palladium bars and rounds from reputable mints and refineries.

IRA-Eligible Products

A-Mark Precious Metals offers a range of IRA-eligible gold, silver, platinum, and palladium products that meet IRS requirements for inclusion in self-directed IRAs.

Ancient Coins

A-Mark Precious Metals provides a selection of ancient coins, including Greek, Roman, and Byzantine coins.

Bullion Storage

A-Mark Precious Metals offers secure storage options for precious metals, including segregated and allocated storage solutions.

8. A-Mark Precious Metals, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

A-Mark Precious Metals, Inc. operates in a niche market with few substitutes, but the threat of substitutes is still present due to the availability of alternative investment options.

Bargaining Power Of Customers

A-Mark Precious Metals, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

A-Mark Precious Metals, Inc. relies on a few large suppliers for its raw materials, which gives these suppliers some bargaining power. However, the company's long-term relationships with its suppliers help to mitigate this risk.

Threat Of New Entrants

The precious metals industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to join the market.

Intensity Of Rivalry

The precious metals industry is highly competitive, with several established players competing for market share. A-Mark Precious Metals, Inc. must continually innovate and improve its products and services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 52.81%
Debt Cost 3.95%
Equity Weight 47.19%
Equity Cost 3.88%
WACC 3.91%
Leverage 111.93%

11. Quality Control: A-Mark Precious Metals, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Siebert Financial

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Value: 7.0

Growth: 6.9

Quality: 7.2

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Momentum: 7.0

Volatility: 2.0

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A-Mark Precious Metals

A-Score: 4.7/10

Value: 6.2

Growth: 5.1

Quality: 3.7

Yield: 8.0

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Quality: 5.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

31.38$

Current Price

31.38$

Potential

-0.00%

Expected Cash-Flows