SANDSTORM GOLD LTD (SAND) Stock Fundamental Analysis
NYSE:SAND - New York Stock Exchange, Inc. - CA80013R2063 - Common Stock - Currency: USD
Taking everything into account, SAND scores 5 out of 10 in our fundamental rating. SAND was compared to 154 industry peers in the Metals & Mining industry. While SAND belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SAND has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SAND had positive earnings in the past year.
SAND had a positive operating cash flow in the past year.
SAND had positive earnings in each of the past 5 years.
SAND had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 1.59%, SAND is doing good in the industry, outperforming 65.58% of the companies in the same industry.
SAND has a better Return On Equity (2.06%) than 60.39% of its industry peers.
SAND's Return On Invested Capital of 3.22% is in line compared to the rest of the industry. SAND outperforms 57.79% of its industry peers.
SAND had an Average Return On Invested Capital over the past 3 years of 2.26%. This is significantly below the industry average of 8.82%.
The last Return On Invested Capital (3.22%) for SAND is above the 3 year average (2.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 2.06% | ||
| ROIC | 3.22% |
ROA(3y)2.3%
ROA(5y)2.69%
ROE(3y)3.15%
ROE(5y)3.26%
ROIC(3y)2.26%
ROIC(5y)3.1%
1.3 Margins
The Profit Margin of SAND (15.80%) is better than 86.36% of its industry peers.
In the last couple of years the Profit Margin of SAND has declined.
SAND has a better Operating Margin (44.16%) than 95.45% of its industry peers.
In the last couple of years the Operating Margin of SAND has grown nicely.
The Gross Margin of SAND (57.03%) is better than 90.26% of its industry peers.
SAND's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.16% | ||
| PM (TTM) | 15.8% | ||
| GM | 57.03% |
OM growth 3Y2.28%
OM growth 5Y14.11%
PM growth 3Y-30.37%
PM growth 5Y-15.07%
GM growth 3Y0.14%
GM growth 5Y7.89%
2. Health
2.1 Basic Checks
SAND has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SAND has been reduced compared to 1 year ago.
Compared to 5 years ago, SAND has more shares outstanding
SAND has a better debt/assets ratio than last year.
2.2 Solvency
SAND has an Altman-Z score of 4.08. This indicates that SAND is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SAND (4.08) is better than 70.13% of its industry peers.
SAND has a debt to FCF ratio of 2.54. This is a good value and a sign of high solvency as SAND would need 2.54 years to pay back of all of its debts.
SAND's Debt to FCF ratio of 2.54 is fine compared to the rest of the industry. SAND outperforms 78.57% of its industry peers.
SAND has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
SAND's Debt to Equity ratio of 0.24 is in line compared to the rest of the industry. SAND outperforms 44.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.54 | ||
| Altman-Z | 4.08 |
ROIC/WACC0.36
WACC8.91%
2.3 Liquidity
SAND has a Current Ratio of 1.77. This is a normal value and indicates that SAND is financially healthy and should not expect problems in meeting its short term obligations.
SAND's Current ratio of 1.77 is on the low side compared to the rest of the industry. SAND is outperformed by 64.29% of its industry peers.
SAND has a Quick Ratio of 1.77. This is a normal value and indicates that SAND is financially healthy and should not expect problems in meeting its short term obligations.
SAND has a Quick ratio (1.77) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
SAND shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.00%, which is quite impressive.
Measured over the past years, SAND shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.51% on average per year.
SAND shows a small growth in Revenue. In the last year, the Revenue has grown by 2.84%.
Measured over the past years, SAND shows a quite strong growth in Revenue. The Revenue has been growing by 14.54% on average per year.
EPS 1Y (TTM)25%
EPS 3Y-25.31%
EPS 5Y-6.51%
EPS Q2Q%500%
Revenue 1Y (TTM)2.84%
Revenue growth 3Y15.34%
Revenue growth 5Y14.54%
Sales Q2Q%16.94%
3.2 Future
Based on estimates for the next years, SAND will show a very strong growth in Earnings Per Share. The EPS will grow by 54.76% on average per year.
Based on estimates for the next years, SAND will show a decrease in Revenue. The Revenue will decrease by -1.12% on average per year.
EPS Next Y251.48%
EPS Next 2Y114.37%
EPS Next 3Y71.11%
EPS Next 5Y54.76%
Revenue Next Year15.57%
Revenue Next 2Y13.07%
Revenue Next 3Y6.88%
Revenue Next 5Y-1.12%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 87.50, the valuation of SAND can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SAND is on the same level as its industry peers.
SAND's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.82.
Based on the Price/Forward Earnings ratio of 38.08, the valuation of SAND can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as SAND.
When comparing the Price/Forward Earnings ratio of SAND to the average of the S&P500 Index (21.76), we can say SAND is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.5 | ||
| Fwd PE | 38.08 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SAND.
79.22% of the companies in the same industry are more expensive than SAND, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.14 | ||
| EV/EBITDA | 20.5 |
4.3 Compensation for Growth
SAND's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SAND has a very decent profitability rating, which may justify a higher PE ratio.
SAND's earnings are expected to grow with 71.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y114.37%
EPS Next 3Y71.11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, SAND is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.97, SAND pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, SAND's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
SAND has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
59.13% of the earnings are spent on dividend by SAND. This is a bit on the high side, but may be sustainable.
DP59.13%
EPS Next 2Y114.37%
EPS Next 3Y71.11%
8.75
+0.23 (+2.7%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners54.09%
Inst Owner Change-22.99%
Ins Owners1.08%
Ins Owner ChangeN/A
Market Cap2.57B
Analysts78.33
Price Target9.27 (5.94%)
Short Float %1.11%
Short Ratio0.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend0.06
Dividend Growth(5Y)N/A
DP59.13%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-43.06%
Min EPS beat(2)-75.25%
Max EPS beat(2)-10.88%
EPS beat(4)1
Avg EPS beat(4)-20.99%
Min EPS beat(4)-75.25%
Max EPS beat(4)40.71%
EPS beat(8)2
Avg EPS beat(8)-16.77%
EPS beat(12)5
Avg EPS beat(12)16.49%
EPS beat(16)5
Avg EPS beat(16)5.04%
Revenue beat(2)1
Avg Revenue beat(2)0.47%
Min Revenue beat(2)-0.15%
Max Revenue beat(2)1.09%
Revenue beat(4)1
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-1.44%
Max Revenue beat(4)1.09%
Revenue beat(8)4
Avg Revenue beat(8)1.06%
Revenue beat(12)5
Avg Revenue beat(12)-0.22%
Revenue beat(16)6
Avg Revenue beat(16)-1.71%
PT rev (1m)21.56%
PT rev (3m)21.49%
EPS NQ rev (1m)12%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.12%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.8%
Revenue NY rev (3m)-4.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.5 | ||
| Fwd PE | 38.08 | ||
| P/S | 13.98 | ||
| P/FCF | 19.14 | ||
| P/OCF | 17.85 | ||
| P/B | 1.82 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 20.5 |
EPS(TTM)0.1
EY1.14%
EPS(NY)0.23
Fwd EY2.63%
FCF(TTM)0.46
FCFY5.23%
OCF(TTM)0.49
OCFY5.6%
SpS0.63
BVpS4.8
TBVpS4.8
PEG (NY)0.35
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 2.06% | ||
| ROCE | 4.49% | ||
| ROIC | 3.22% | ||
| ROICexc | 3.24% | ||
| ROICexgc | 3.24% | ||
| OM | 44.16% | ||
| PM (TTM) | 15.8% | ||
| GM | 57.03% | ||
| FCFM | 73.03% |
ROA(3y)2.3%
ROA(5y)2.69%
ROE(3y)3.15%
ROE(5y)3.26%
ROIC(3y)2.26%
ROIC(5y)3.1%
ROICexc(3y)2.28%
ROICexc(5y)3.3%
ROICexgc(3y)2.28%
ROICexgc(5y)3.3%
ROCE(3y)3.15%
ROCE(5y)4.33%
ROICexcg growth 3Y-18.66%
ROICexcg growth 5Y4.72%
ROICexc growth 3Y-18.66%
ROICexc growth 5Y4.72%
OM growth 3Y2.28%
OM growth 5Y14.11%
PM growth 3Y-30.37%
PM growth 5Y-15.07%
GM growth 3Y0.14%
GM growth 5Y7.89%
F-Score8
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.54 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 16.19% | ||
| Cap/Sales | 5.27% | ||
| Interest Coverage | 2.69 | ||
| Cash Conversion | 102.1% | ||
| Profit Quality | 462.34% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z | 4.08 |
F-Score8
WACC8.91%
ROIC/WACC0.36
Cap/Depr(3y)359.89%
Cap/Depr(5y)302.38%
Cap/Sales(3y)145.51%
Cap/Sales(5y)114.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)25%
EPS 3Y-25.31%
EPS 5Y-6.51%
EPS Q2Q%500%
EPS Next Y251.48%
EPS Next 2Y114.37%
EPS Next 3Y71.11%
EPS Next 5Y54.76%
Revenue 1Y (TTM)2.84%
Revenue growth 3Y15.34%
Revenue growth 5Y14.54%
Sales Q2Q%16.94%
Revenue Next Year15.57%
Revenue Next 2Y13.07%
Revenue Next 3Y6.88%
Revenue Next 5Y-1.12%
EBIT growth 1Y30.4%
EBIT growth 3Y17.96%
EBIT growth 5Y30.71%
EBIT Next Year73.35%
EBIT Next 3Y25.98%
EBIT Next 5Y21.81%
FCF growth 1Y126.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y15.53%
OCF growth 3Y18.62%
OCF growth 5Y18.76%