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 797 industry peers in the Metals & Mining industry. SMT has an excellent profitability rating, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SMT.
1. Profitability
1.1 Basic Checks
SMT had positive earnings in the past year.
In the past year SMT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: SMT reported negative net income in multiple years.
In the past 5 years SMT always reported a positive cash flow from operatings.
1.2 Ratios
SMT's Return On Assets of 5.95% is amongst the best of the industry. SMT outperforms 90.72% of its industry peers.
With an excellent Return On Equity value of 20.67%, SMT belongs to the best of the industry, outperforming 95.36% of the companies in the same industry.
SMT's Return On Invested Capital of 9.72% is amongst the best of the industry. SMT outperforms 95.11% 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
The Profit Margin of SMT (7.63%) is better than 91.59% of its industry peers.
In the last couple of years the Profit Margin of SMT has grown nicely.
SMT's Operating Margin of 12.85% is amongst the best of the industry. SMT outperforms 90.21% of its industry peers.
SMT's Operating Margin has declined in the last couple of years.
The Gross Margin of SMT (27.40%) is better than 90.72% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SMT is destroying value.
SMT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SMT has more shares outstanding
The debt/assets ratio for SMT is higher compared to a year ago.
2.2 Solvency
SMT has an Altman-Z score of 0.91. This is a bad value and indicates that SMT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.91, SMT perfoms like the industry average, outperforming 49.56% of the companies in the same 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.
With an excellent Debt to FCF ratio value of 12.03, SMT belongs to the best of the industry, outperforming 89.84% of the companies in the same industry.
SMT has a Debt/Equity ratio of 0.88. This is a neutral value indicating SMT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.88, SMT is doing worse than 74.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.03 | ||
| Altman-Z | 0.91 |
ROIC/WACC0.97
WACC10.05%
2.3 Liquidity
A Current Ratio of 0.78 indicates that SMT may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.78, SMT is doing worse than 63.11% of the companies in the same industry.
A Quick Ratio of 0.60 indicates that SMT may have some problems paying its short term obligations.
The Quick ratio of SMT (0.60) is worse than 64.37% 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.
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.
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 4.75, the valuation of SMT can be described as very cheap.
97.74% of the companies in the same industry are more expensive than SMT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SMT to the average of the S&P500 Index (27.29), we can say SMT is valued rather cheaply.
The Price/Forward Earnings ratio is 4.88, which indicates a rather cheap valuation of SMT.
SMT's Price/Forward Earnings ratio is rather cheap when compared to the industry. SMT is cheaper than 95.98% of the companies in the same industry.
SMT is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.75 | ||
| Fwd PE | 4.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SMT is valued cheaply inside the industry as 97.99% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SMT is valued cheaply inside the industry as 93.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.39 | ||
| EV/EBITDA | 2.9 |
4.3 Compensation for Growth
The decent profitability rating of SMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.2
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 (7/4/2025, 7:00:00 PM)
1.14
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 Cap242.02M
Analysts45.71
Price Target1.12 (-1.75%)
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 | 4.75 | ||
| Fwd PE | 4.88 | ||
| P/S | 0.6 | ||
| P/FCF | 22.39 | ||
| P/OCF | 2.35 | ||
| P/B | 1.63 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 2.9 |
EPS(TTM)0.24
EY21.05%
EPS(NY)0.23
Fwd EY20.47%
FCF(TTM)0.05
FCFY4.47%
OCF(TTM)0.49
OCFY42.62%
SpS1.89
BVpS0.7
TBVpS0.7
PEG (NY)N/A
PEG (5Y)0.2
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
WACC10.05%
ROIC/WACC0.97
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%