Sprott Inc. Fundamental Analysis (TSX: SII.TO)
Sprott Inc. (TSX: SII.TO) shows strong financial fundamentals with a PE ratio of 28.64, profit margin of 26.68%, and ROE of 28.39%. The company generates $0.4B in annual revenue with strong year-over-year growth of 75.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 93.1/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze SII.TO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSII.TO demonstrates superior asset utilization.
Valuation Score
ModerateSII.TO shows balanced valuation metrics.
Growth Score
ExcellentSII.TO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSII.TO maintains a strong and stable balance sheet.
Profitability Score
ExcellentSII.TO achieves industry-leading margins.
Key Financial Metrics
Is SII.TO Expensive or Cheap?
P/E Ratio
SII.TO trades at 28.64 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SII.TO's PEG of 0.35 indicates potential undervaluation.
Price to Book
The market values Sprott Inc. at 7.68 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 21.68 times EBITDA. This signals the market has high growth expectations.
How Well Does SII.TO Make Money?
Net Profit Margin
For every $100 in sales, Sprott Inc. keeps $26.68 as profit after all expenses.
Operating Margin
Core operations generate 34.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.39 in profit for every $100 of shareholder equity.
ROA
Sprott Inc. generates $20.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sprott Inc. generates strong operating cash flow of $141.73M, reflecting robust business health.
Free Cash Flow
Sprott Inc. generates strong free cash flow of $139.67M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.42 in free cash annually.
FCF Yield
SII.TO converts 4.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.20
vs 25 benchmark
ROCE
Return on capital employed
0.30
vs 25 benchmark
How SII.TO Stacks Against Its Sector Peers
| Metric | SII.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.64 | 21.27 | Worse (Expensive) |
| ROE | 28.39% | 664.00% | Weak |
| Net Margin | 26.68% | -735.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 3.43 | 910.47 | Strong Liquidity |
| ROA | 20.42% | 4469143.00% | Weak |
SII.TO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sprott Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
156.90%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
152.96%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
270.78%
Industry Style: Value, Dividend, Cyclical
High Growth