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SPROTT INC (SII.CA) Stock Fundamental Analysis

TSX:SII - Toronto Stock Exchange - CA8520662088 - Common Stock - Currency: CAD

63.08  -0.77 (-1.21%)

Fundamental Rating

6

Taking everything into account, SII scores 6 out of 10 in our fundamental rating. SII was compared to 83 industry peers in the Capital Markets industry. Both the health and profitability get an excellent rating, making SII a very profitable company, without any liquidiy or solvency issues. SII has a decent growth rate and is not valued too expensively. These ratings could make SII a good candidate for quality investing.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year SII was profitable.
SII had a positive operating cash flow in the past year.
In the past 5 years SII has always been profitable.
Each year in the past 5 years SII had a positive operating cash flow.
SII.CA Yearly Net Income VS EBIT VS OCF VS FCFSII.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M -20M 40M 60M

1.2 Ratios

SII has a Return On Assets of 11.46%. This is amongst the best in the industry. SII outperforms 85.14% of its industry peers.
With a decent Return On Equity value of 14.31%, SII is doing good in the industry, outperforming 79.73% of the companies in the same industry.
SII's Return On Invested Capital of 13.62% is amongst the best of the industry. SII outperforms 91.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SII is in line with the industry average of 9.07%.
The last Return On Invested Capital (13.62%) for SII is above the 3 year average (10.71%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 11.46%
ROE 14.31%
ROIC 13.62%
ROA(3y)8.23%
ROA(5y)7%
ROE(3y)10.47%
ROE(5y)8.89%
ROIC(3y)10.71%
ROIC(5y)9.09%
SII.CA Yearly ROA, ROE, ROICSII.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10 -10

1.3 Margins

Looking at the Profit Margin, with a value of 26.74%, SII is in the better half of the industry, outperforming 72.97% of the companies in the same industry.
SII's Profit Margin has declined in the last couple of years.
SII has a better Operating Margin (39.27%) than 81.08% of its industry peers.
SII's Operating Margin has improved in the last couple of years.
Industry RankSector Rank
OM 39.27%
PM (TTM) 26.74%
GM N/A
OM growth 3Y2.96%
OM growth 5Y4.41%
PM growth 3Y3.71%
PM growth 5Y-2.94%
GM growth 3YN/A
GM growth 5YN/A
SII.CA Yearly Profit, Operating, Gross MarginsSII.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20

8

2. Health

2.1 Basic Checks

SII has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SII has more shares outstanding
SII has a better debt/assets ratio than last year.
SII.CA Yearly Shares OutstandingSII.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M 25M
SII.CA Yearly Total Debt VS Total AssetsSII.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M

2.2 Solvency

SII has an Altman-Z score of 9.22. This indicates that SII is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SII (9.22) is better than 86.49% of its industry peers.
SII has a debt to FCF ratio of 0.36. This is a very positive value and a sign of high solvency as it would only need 0.36 years to pay back of all of its debts.
SII's Debt to FCF ratio of 0.36 is amongst the best of the industry. SII outperforms 93.24% of its industry peers.
SII has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SII (0.06) is better than 78.38% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.36
Altman-Z 9.22
ROIC/WACCN/A
WACCN/A
SII.CA Yearly LT Debt VS Equity VS FCFSII.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M

2.3 Liquidity

A Current Ratio of 3.30 indicates that SII has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.30, SII is doing good in the industry, outperforming 79.73% of the companies in the same industry.
A Quick Ratio of 3.30 indicates that SII has no problem at all paying its short term obligations.
SII has a Quick ratio of 3.30. This is in the better half of the industry: SII outperforms 79.73% of its industry peers.
Industry RankSector Rank
Current Ratio 3.3
Quick Ratio 3.3
SII.CA Yearly Current Assets VS Current LiabilitesSII.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 19.48% over the past year.
Measured over the past years, SII shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.07% on average per year.
SII shows a small growth in Revenue. In the last year, the Revenue has grown by 7.53%.
SII shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.93% yearly.
EPS 1Y (TTM)19.48%
EPS 3Y14.2%
EPS 5Y10.07%
EPS Q2Q%85.19%
Revenue 1Y (TTM)7.53%
Revenue growth 3Y11.54%
Revenue growth 5Y14.93%
Sales Q2Q%39.56%

3.2 Future

Based on estimates for the next years, SII will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.78% on average per year.
SII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.96% yearly.
EPS Next Y18.14%
EPS Next 2Y11.41%
EPS Next 3Y12.78%
EPS Next 5YN/A
Revenue Next Year5.53%
Revenue Next 2Y2.96%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
SII.CA Yearly Revenue VS EstimatesSII.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M
SII.CA Yearly EPS VS EstimatesSII.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

4

4. Valuation

4.1 Price/Earnings Ratio

SII is valuated rather expensively with a Price/Earnings ratio of 23.98.
Based on the Price/Earnings ratio, SII is valued a bit more expensive than 60.81% of the companies in the same industry.
When comparing the Price/Earnings ratio of SII to the average of the S&P500 Index (28.35), we can say SII is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.84, the valuation of SII can be described as rather expensive.
SII's Price/Forward Earnings is on the same level as the industry average.
SII's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 95.00.
Industry RankSector Rank
PE 23.98
Fwd PE 21.84
SII.CA Price Earnings VS Forward Price EarningsSII.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as SII.
Based on the Price/Free Cash Flow ratio, SII is valued a bit cheaper than the industry average as 72.97% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 22.03
EV/EBITDA 15.53
SII.CA Per share dataSII.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SII has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SII's earnings are expected to grow with 12.78% in the coming years.
PEG (NY)1.32
PEG (5Y)2.38
EPS Next 2Y11.41%
EPS Next 3Y12.78%

5

5. Dividend

5.1 Amount

SII has a Yearly Dividend Yield of 2.67%.
Compared to an average industry Dividend Yield of 3.26, SII pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, SII has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.67%

5.2 History

The dividend of SII has a limited annual growth rate of 1.47%.
SII has been paying a dividend for at least 10 years, so it has a reliable track record.
SII has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.47%
Div Incr Years2
Div Non Decr Years3
SII.CA Yearly Dividends per shareSII.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

5.3 Sustainability

SII pays out 54.67% of its income as dividend. This is a bit on the high side, but may be sustainable.
SII's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP54.67%
EPS Next 2Y11.41%
EPS Next 3Y12.78%
SII.CA Yearly Income VS Free CF VS DividendSII.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M -20M 40M
SII.CA Dividend Payout.SII.CA Dividend Payout, showing the Payout Ratio.SII.CA Dividend Payout.PayoutRetained Earnings

SPROTT INC

TSX:SII (2/5/2025, 7:00:00 PM)

63.08

-0.77 (-1.21%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)11-06 2024-11-06/bmo
Earnings (Next)02-21 2025-02-21/amc
Inst Owners41.53%
Inst Owner ChangeN/A
Ins Owners1.88%
Ins Owner ChangeN/A
Market Cap1.63B
Analysts80
Price Target66.81 (5.91%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.67%
Yearly Dividend1.02
Dividend Growth(5Y)1.47%
DP54.67%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.09%
Min EPS beat(2)12.51%
Max EPS beat(2)21.67%
EPS beat(4)3
Avg EPS beat(4)7.28%
Min EPS beat(4)-20.79%
Max EPS beat(4)21.67%
EPS beat(8)4
Avg EPS beat(8)9.19%
EPS beat(12)4
Avg EPS beat(12)-13.54%
EPS beat(16)5
Avg EPS beat(16)-16.72%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.16%
PT rev (3m)-0.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.83%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)3.44%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.44%
Valuation
Industry RankSector Rank
PE 23.98
Fwd PE 21.84
P/S 6.46
P/FCF 22.03
P/OCF 21.22
P/B 3.46
P/tB 8.65
EV/EBITDA 15.53
EPS(TTM)2.63
EY4.17%
EPS(NY)2.89
Fwd EY4.58%
FCF(TTM)2.86
FCFY4.54%
OCF(TTM)2.97
OCFY4.71%
SpS9.77
BVpS18.25
TBVpS7.29
PEG (NY)1.32
PEG (5Y)2.38
Profitability
Industry RankSector Rank
ROA 11.46%
ROE 14.31%
ROCE 17.73%
ROIC 13.62%
ROICexc 15.4%
ROICexgc 36.07%
OM 39.27%
PM (TTM) 26.74%
GM N/A
FCFM 29.31%
ROA(3y)8.23%
ROA(5y)7%
ROE(3y)10.47%
ROE(5y)8.89%
ROIC(3y)10.71%
ROIC(5y)9.09%
ROICexc(3y)12.22%
ROICexc(5y)10.6%
ROICexgc(3y)34.24%
ROICexgc(5y)29.26%
ROCE(3y)13.95%
ROCE(5y)11.84%
ROICexcg growth 3Y5.06%
ROICexcg growth 5Y12.92%
ROICexc growth 3Y7.78%
ROICexc growth 5Y10.92%
OM growth 3Y2.96%
OM growth 5Y4.41%
PM growth 3Y3.71%
PM growth 5Y-2.94%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.43
Health
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.36
Debt/EBITDA 0.26
Cap/Depr 88.03%
Cap/Sales 1.13%
Interest Coverage 250
Cash Conversion 75.05%
Profit Quality 109.59%
Current Ratio 3.3
Quick Ratio 3.3
Altman-Z 9.22
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)421.19%
Cap/Depr(5y)328.69%
Cap/Sales(3y)11.1%
Cap/Sales(5y)9.43%
Profit Quality(3y)74.01%
Profit Quality(5y)114.62%
High Growth Momentum
Growth
EPS 1Y (TTM)19.48%
EPS 3Y14.2%
EPS 5Y10.07%
EPS Q2Q%85.19%
EPS Next Y18.14%
EPS Next 2Y11.41%
EPS Next 3Y12.78%
EPS Next 5YN/A
Revenue 1Y (TTM)7.53%
Revenue growth 3Y11.54%
Revenue growth 5Y14.93%
Sales Q2Q%39.56%
Revenue Next Year5.53%
Revenue Next 2Y2.96%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y18.68%
EBIT growth 3Y14.84%
EBIT growth 5Y20%
EBIT Next Year-10.8%
EBIT Next 3Y6.19%
EBIT Next 5YN/A
FCF growth 1Y342.82%
FCF growth 3Y29.64%
FCF growth 5YN/A
OCF growth 1Y137.02%
OCF growth 3Y4.46%
OCF growth 5Y-15.71%