Sandstorm Gold Ltd.
Sandstorm Gold Ltd. Fundamental Analysis
Sandstorm Gold Ltd. (SSL.TO) shows weak financial fundamentals with a PE ratio of 99.06, profit margin of 17.78%, and ROE of 2.42%. The company generates $0.2B in annual revenue with weak year-over-year growth of -1.87%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SSL.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakSSL.TO struggles to generate sufficient returns from assets.
Valuation Score
WeakSSL.TO trades at a premium to fair value.
Growth Score
WeakSSL.TO faces weak or negative growth trends.
Financial Health Score
ExcellentSSL.TO maintains a strong and stable balance sheet.
Profitability Score
ExcellentSSL.TO achieves industry-leading margins.
Key Financial Metrics
Is SSL.TO Expensive or Cheap?
P/E Ratio
SSL.TO trades at 99.06 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SSL.TO's PEG of 6.06 indicates potential overvaluation.
Price to Book
The market values Sandstorm Gold Ltd. at 2.39 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 20.90 times EBITDA. This signals the market has high growth expectations.
How Well Does SSL.TO Make Money?
Net Profit Margin
For every $100 in sales, Sandstorm Gold Ltd. keeps $17.78 as profit after all expenses.
Operating Margin
Core operations generate 75.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.42 in profit for every $100 of shareholder equity.
ROA
Sandstorm Gold Ltd. generates $1.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sandstorm Gold Ltd. generates strong operating cash flow of $118.75M, reflecting robust business health.
Free Cash Flow
Sandstorm Gold Ltd. generates strong free cash flow of $113.78M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.39 in free cash annually.
FCF Yield
SSL.TO converts 3.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
99.06
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
17.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How SSL.TO Stacks Against Its Sector Peers
| Metric | SSL.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 99.06 | 24.02 | Worse (Expensive) |
| ROE | 2.42% | 867.00% | Weak |
| Net Margin | 17.78% | -102872.00% (disorted) | Strong |
| Debt/Equity | 0.22 | 0.51 | Strong (Low Leverage) |
| Current Ratio | 2.40 | 5.08 | Strong Liquidity |
| ROA | 1.89% | -6488.00% (disorted) | Weak |
SSL.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 Sandstorm Gold Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
20.71%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-46.62%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
9.97%
Industry Style: Cyclical, Commodity, Value
Growing