SIERRA METALS INC (SMT.CA) Stock Fundamental Analysis
TSX:SMT - Toronto Stock Exchange - CA82639W1068 - Common Stock - Currency: CAD
Overall SMT gets a fundamental rating of 5 out of 10. We evaluated SMT against 808 industry peers in the Metals & Mining industry. SMT has an excellent profitability rating, but there are concerns on its financial health. SMT may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
SMT had positive earnings in the past year.
SMT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SMT reported negative net income in multiple years.
SMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SMT (5.95%) is better than 90.47% of its industry peers.
SMT's Return On Equity of 20.67% is amongst the best of the industry. SMT outperforms 95.17% of its industry peers.
With an excellent Return On Invested Capital value of 9.72%, SMT belongs to the best of the industry, outperforming 95.05% of the companies in the same industry.
| 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
Looking at the Profit Margin, with a value of 7.63%, SMT belongs to the top of the industry, outperforming 91.58% of the companies in the same industry.
In the last couple of years the Profit Margin of SMT has grown nicely.
Looking at the Operating Margin, with a value of 12.85%, SMT belongs to the top of the industry, outperforming 90.22% of the companies in the same industry.
In the last couple of years the Operating Margin of SMT has declined.
SMT has a Gross Margin of 27.40%. This is amongst the best in the industry. SMT outperforms 90.84% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SMT is still creating some value.
Compared to 1 year ago, SMT has more shares outstanding
Compared to 5 years ago, SMT has more shares outstanding
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.
The Altman-Z score of SMT (0.91) is comparable to the rest of the industry.
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.
SMT's Debt to FCF ratio of 12.03 is amongst the best of the industry. SMT outperforms 89.73% of its industry peers.
SMT has a Debt/Equity ratio of 0.88. This is a neutral value indicating SMT is somewhat dependend on debt financing.
SMT has a Debt to Equity ratio of 0.88. This is in the lower half of the industry: SMT underperforms 75.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.03 | ||
| Altman-Z | 0.91 |
ROIC/WACC1.05
WACC9.28%
2.3 Liquidity
A Current Ratio of 0.78 indicates that SMT may have some problems paying its short term obligations.
SMT has a Current ratio of 0.78. This is in the lower half of the industry: SMT underperforms 63.74% 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.
SMT's Quick ratio of 0.60 is on the low side compared to the rest of the industry. SMT is outperformed by 64.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 550.00% over the past year.
The Earnings Per Share has been growing by 24.07% on average over the past years. This is a very strong growth
SMT shows a strong growth in Revenue. In the last year, 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
With a Price/Earnings ratio of 4.60, the valuation of SMT can be described as very cheap.
Based on the Price/Earnings ratio, SMT is valued cheaply inside the industry as 97.52% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SMT to the average of the S&P500 Index (27.28), we can say SMT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.91, 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 96.04% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. SMT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.6 | ||
| Fwd PE | 4.91 |
4.2 Price Multiples
97.65% of the companies in the same industry are more expensive than SMT, based on the Enterprise Value to EBITDA ratio.
93.19% 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 | 22.5 | ||
| EV/EBITDA | 2.91 |
4.3 Compensation for Growth
SMT has a very decent profitability rating, which 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
SMT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:SMT (7/2/2025, 7:00:00 PM)
1.15
+0.01 (+0.88%)
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 | 4.91 | ||
| P/S | 0.61 | ||
| P/FCF | 22.5 | ||
| P/OCF | 2.36 | ||
| P/B | 1.64 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 2.91 |
EPS(TTM)0.25
EY21.74%
EPS(NY)0.23
Fwd EY20.37%
FCF(TTM)0.05
FCFY4.45%
OCF(TTM)0.49
OCFY42.42%
SpS1.9
BVpS0.7
TBVpS0.7
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
WACC9.28%
ROIC/WACC1.05
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%