Sprott Physical Gold Trust
Sprott Physical Gold Trust Fundamental Analysis
Sprott Physical Gold Trust (PHYS.TO) shows strong financial fundamentals with a PE ratio of 3.73, profit margin of 1.36%, and ROE of 45.12%. The company generates $3.2B in annual revenue with strong year-over-year growth of 46.91%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze PHYS.TO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPHYS.TO demonstrates superior asset utilization.
Valuation Score
ExcellentPHYS.TO trades at attractive valuation levels.
Growth Score
ModeratePHYS.TO shows steady but slowing expansion.
Financial Health Score
ModeratePHYS.TO shows balanced financial health with some risks.
Profitability Score
WeakPHYS.TO struggles to sustain strong margins.
Key Financial Metrics
Is PHYS.TO Expensive or Cheap?
P/E Ratio
PHYS.TO trades at 3.73 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PHYS.TO's PEG of 0.14 indicates potential undervaluation.
Price to Book
The market values Sprott Physical Gold Trust at 1.39 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.75 times EBITDA. This is generally considered low.
How Well Does PHYS.TO Make Money?
Net Profit Margin
For every $100 in sales, Sprott Physical Gold Trust keeps $1.36 as profit after all expenses.
Operating Margin
Core operations generate 1.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $45.12 in profit for every $100 of shareholder equity.
ROA
Sprott Physical Gold Trust generates $37.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sprott Physical Gold Trust generates limited operating cash flow of $-35.00M, signaling weaker underlying cash strength.
Free Cash Flow
Sprott Physical Gold Trust generates weak or negative free cash flow of $-35.00M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.07 in free cash annually.
FCF Yield
PHYS.TO converts -0.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
3.73
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.45
vs 25 benchmark
ROA
Return on assets percentage
0.37
vs 25 benchmark
ROCE
Return on capital employed
0.37
vs 25 benchmark
How PHYS.TO Stacks Against Its Sector Peers
| Metric | PHYS.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 3.73 | 18.71 | Better (Cheaper) |
| ROE | 45.12% | 815.00% | Weak |
| Net Margin | 135.50% | 2536.00% | Weak |
| Debt/Equity | 0.00 | 1.06 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 660.29 | Weak Liquidity |
| ROA | 37.23% | -24200.00% (disorted) | Strong |
PHYS.TO outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sprott Physical Gold Trust's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
131.12%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
132.61%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-18.14%
Industry Style: Value, Dividend, Cyclical
Declining