SIERRA METALS INC (SMT.CA) Stock Fundamental Analysis
TSX:SMT - Toronto Stock Exchange - CA82639W1068 - Common Stock - Currency: CAD
SMT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 806 industry peers in the Metals & Mining industry. While SMT belongs to the best of the industry regarding profitability, there are concerns on its financial health. SMT scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year SMT was profitable.
In the past year SMT had a positive cash flow from operations.
In multiple years SMT reported negative net income over the last 5 years.
SMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 5.95%, SMT belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
SMT has a better Return On Equity (20.67%) than 95.04% of its industry peers.
SMT has a Return On Invested Capital of 9.72%. This is amongst the best in the industry. SMT outperforms 95.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 20.67% | ||
| ROIC | 9.72% |
ROA(3y)-9.99%
ROA(5y)-6.31%
ROE(3y)-39.1%
ROE(5y)-24.37%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SMT has a Profit Margin of 7.63%. This is amongst the best in the industry. SMT outperforms 91.56% of its industry peers.
In the last couple of years the Profit Margin of SMT has grown nicely.
SMT has a better Operating Margin (12.85%) than 90.20% of its industry peers.
SMT's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 27.40%, SMT belongs to the best of the industry, outperforming 90.82% of the companies in the same industry.
In the last couple of years the Gross Margin of SMT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.85% | ||
| PM (TTM) | 7.63% | ||
| GM | 27.4% |
OM growth 3Y-20.7%
OM growth 5Y-6.89%
PM growth 3YN/A
PM growth 5Y24.68%
GM growth 3Y-6.89%
GM growth 5Y-0.92%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SMT is destroying value.
The number of shares outstanding for SMT has been increased compared to 1 year ago.
SMT has more shares outstanding than it did 5 years ago.
SMT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.91, we must say that SMT is in the distress zone and has some risk of bankruptcy.
SMT has a Altman-Z score of 0.91. This is comparable to the rest of the industry: SMT outperforms 48.26% of its industry peers.
The Debt to FCF ratio of SMT is 12.03, which is on the high side as it means it would take SMT, 12.03 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SMT (12.03) is better than 90.07% of its industry peers.
A Debt/Equity ratio of 0.88 indicates that SMT is somewhat dependend on debt financing.
The Debt to Equity ratio of SMT (0.88) is worse than 74.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.03 | ||
| Altman-Z | 0.91 |
ROIC/WACC0.99
WACC9.87%
2.3 Liquidity
SMT has a Current Ratio of 0.78. This is a bad value and indicates that SMT is not financially healthy enough and could expect problems in meeting its short term obligations.
SMT's Current ratio of 0.78 is on the low side compared to the rest of the industry. SMT is outperformed by 63.15% of its industry peers.
SMT has a Quick Ratio of 0.78. This is a bad value and indicates that SMT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.60, SMT is not doing good in the industry: 64.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
SMT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 550.00%, which is quite impressive.
Measured over the past years, SMT shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.07% on average per year.
Looking at the last year, SMT shows a very strong growth in Revenue. The Revenue has grown by 21.43%.
Measured over the past years, SMT shows a small growth in Revenue. The Revenue has been growing by 3.55% on average per year.
EPS 1Y (TTM)550%
EPS 3Y-19.02%
EPS 5Y24.07%
EPS Q2Q%290.43%
Revenue 1Y (TTM)21.43%
Revenue growth 3Y0.08%
Revenue growth 5Y3.55%
Sales Q2Q%36.33%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y-4.61%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year14.02%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 4.60 indicates a rather cheap valuation of SMT.
Based on the Price/Earnings ratio, SMT is valued cheaper than 97.39% of the companies in the same industry.
SMT is valuated cheaply when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 4.84, the valuation of SMT can be described as very cheap.
SMT's Price/Forward Earnings ratio is rather cheap when compared to the industry. SMT is cheaper than 96.15% of the companies in the same industry.
SMT is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.6 | ||
| Fwd PE | 4.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SMT indicates a rather cheap valuation: SMT is cheaper than 98.01% of the companies listed in the same industry.
93.05% of the companies in the same industry are more expensive than SMT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.19 | ||
| EV/EBITDA | 2.88 |
4.3 Compensation for Growth
The decent profitability rating of SMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.19
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for SMT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:SMT (8/1/2025, 7:00:00 PM)
1.15
0 (0%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners1.49%
Inst Owner ChangeN/A
Ins Owners0.48%
Ins Owner ChangeN/A
Market Cap244.14M
Analysts45.71
Price Target1.12 (-2.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.6 | ||
| Fwd PE | 4.84 | ||
| P/S | 0.6 | ||
| P/FCF | 22.19 | ||
| P/OCF | 2.32 | ||
| P/B | 1.62 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 2.88 |
EPS(TTM)0.25
EY21.74%
EPS(NY)0.24
Fwd EY20.66%
FCF(TTM)0.05
FCFY4.51%
OCF(TTM)0.49
OCFY43.01%
SpS1.93
BVpS0.71
TBVpS0.71
PEG (NY)N/A
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 20.67% | ||
| ROCE | 14.26% | ||
| ROIC | 9.72% | ||
| ROICexc | 10.56% | ||
| ROICexgc | 10.56% | ||
| OM | 12.85% | ||
| PM (TTM) | 7.63% | ||
| GM | 27.4% | ||
| FCFM | 2.69% |
ROA(3y)-9.99%
ROA(5y)-6.31%
ROE(3y)-39.1%
ROE(5y)-24.37%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-18.12%
ROICexcg growth 5Y1.02%
ROICexc growth 3Y-18.12%
ROICexc growth 5Y1.02%
OM growth 3Y-20.7%
OM growth 5Y-6.89%
PM growth 3YN/A
PM growth 5Y24.68%
GM growth 3Y-6.89%
GM growth 5Y-0.92%
F-Score7
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.03 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 156% | ||
| Cap/Sales | 22.99% | ||
| Interest Coverage | 2.72 | ||
| Cash Conversion | 93.07% | ||
| Profit Quality | 35.25% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 0.91 |
F-Score7
WACC9.87%
ROIC/WACC0.99
Cap/Depr(3y)123.28%
Cap/Depr(5y)122.28%
Cap/Sales(3y)20.32%
Cap/Sales(5y)20.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)550%
EPS 3Y-19.02%
EPS 5Y24.07%
EPS Q2Q%290.43%
EPS Next Y-4.61%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)21.43%
Revenue growth 3Y0.08%
Revenue growth 5Y3.55%
Sales Q2Q%36.33%
Revenue Next Year14.02%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y306.58%
EBIT growth 3Y-20.64%
EBIT growth 5Y-3.59%
EBIT Next Year224.58%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y146.32%
FCF growth 3Y125.45%
FCF growth 5YN/A
OCF growth 1Y326.35%
OCF growth 3Y-3.39%
OCF growth 5Y10.47%