Sierra Metals Inc.
Sierra Metals Inc. Fundamental Analysis
Sierra Metals Inc. (SMT.TO) shows moderate financial fundamentals with a PE ratio of 9.40, profit margin of 7.75%, and ROE of 18.72%. The company generates $0.2B in annual revenue with strong year-over-year growth of 18.77%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SMT.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakSMT.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSMT.TO trades at attractive valuation levels.
Growth Score
ModerateSMT.TO shows steady but slowing expansion.
Financial Health Score
ModerateSMT.TO shows balanced financial health with some risks.
Profitability Score
ModerateSMT.TO maintains healthy but balanced margins.
Key Financial Metrics
Is SMT.TO Expensive or Cheap?
P/E Ratio
SMT.TO trades at 9.40 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SMT.TO's PEG of 0.38 indicates potential undervaluation.
Price to Book
The market values Sierra Metals Inc. at 1.59 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.03 times EBITDA. This is generally considered low.
How Well Does SMT.TO Make Money?
Net Profit Margin
For every $100 in sales, Sierra Metals Inc. keeps $7.75 as profit after all expenses.
Operating Margin
Core operations generate 14.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.72 in profit for every $100 of shareholder equity.
ROA
Sierra Metals Inc. generates $4.87 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sierra Metals Inc. generates strong operating cash flow of $69.94M, reflecting robust business health.
Free Cash Flow
Sierra Metals Inc. produces free cash flow of $13.24M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.06 in free cash annually.
FCF Yield
SMT.TO converts 7.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.38
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.59
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.78
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How SMT.TO Stacks Against Its Sector Peers
| Metric | SMT.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.40 | 23.49 | Better (Cheaper) |
| ROE | 18.72% | 883.00% | Weak |
| Net Margin | 7.75% | -94454.00% (disorted) | Weak |
| Debt/Equity | 0.76 | 0.51 | Weak (High Leverage) |
| Current Ratio | 0.78 | 5.14 | Weak Liquidity |
| ROA | 4.87% | -6300.00% (disorted) | Weak |
SMT.TO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sierra Metals Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-7.84%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
29.73%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
27.41%
Industry Style: Cyclical, Commodity, Value
High Growth