SANDSTORM GOLD LTD (SSL.CA) Stock Fundamental Analysis
TSX:SSL - Toronto Stock Exchange - CA80013R2063 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to SSL. SSL was compared to 818 industry peers in the Metals & Mining industry. SSL scores excellent on profitability, but there are some minor concerns on its financial health. SSL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SSL had positive earnings in the past year.
SSL had a positive operating cash flow in the past year.
SSL had positive earnings in each of the past 5 years.
SSL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SSL has a better Return On Assets (1.89%) than 87.91% of its industry peers.
Looking at the Return On Equity, with a value of 2.47%, SSL belongs to the top of the industry, outperforming 87.36% of the companies in the same industry.
The Return On Invested Capital of SSL (2.66%) is better than 88.99% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SSL is significantly below the industry average of 11.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 2.47% | ||
| ROIC | 2.66% |
ROA(3y)3.53%
ROA(5y)3.07%
ROE(3y)4.37%
ROE(5y)3.63%
ROIC(3y)3.05%
ROIC(5y)2.99%
1.3 Margins
With an excellent Profit Margin value of 20.46%, SSL belongs to the best of the industry, outperforming 96.47% of the companies in the same industry.
SSL's Profit Margin has improved in the last couple of years.
SSL has a better Operating Margin (39.77%) than 97.69% of its industry peers.
In the last couple of years the Operating Margin of SSL has grown nicely.
With an excellent Gross Margin value of 51.03%, SSL belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
In the last couple of years the Gross Margin of SSL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.77% | ||
| PM (TTM) | 20.46% | ||
| GM | 51.03% |
OM growth 3Y-0.57%
OM growth 5Y7.94%
PM growth 3Y16.1%
PM growth 5Y23.57%
GM growth 3Y-2.32%
GM growth 5Y3.68%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SSL is destroying value.
The number of shares outstanding for SSL has been reduced compared to 1 year ago.
The number of shares outstanding for SSL has been increased compared to 5 years ago.
Compared to 1 year ago, SSL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.96 indicates that SSL is not a great score, but indicates only limited risk for bankruptcy at the moment.
SSL has a Altman-Z score (2.96) which is in line with its industry peers.
SSL has a debt to FCF ratio of 3.10. This is a good value and a sign of high solvency as SSL would need 3.10 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.10, SSL belongs to the top of the industry, outperforming 92.66% of the companies in the same industry.
SSL has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
SSL has a Debt to Equity ratio of 0.26. This is in the lower half of the industry: SSL underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 2.96 |
ROIC/WACC0.29
WACC9.31%
2.3 Liquidity
A Current Ratio of 2.29 indicates that SSL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.29, SSL is in line with its industry, outperforming 55.16% of the companies in the same industry.
SSL has a Quick Ratio of 2.29. This indicates that SSL is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of SSL (2.29) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 2.29 |
3. Growth
3.1 Past
SSL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.33%, which is quite impressive.
Measured over the past years, SSL shows a very strong growth in Earnings Per Share. The EPS has been growing by 37.22% on average per year.
The Revenue has decreased by -0.12% in the past year.
SSL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.67% yearly.
EPS 1Y (TTM)33.33%
EPS 3Y17.84%
EPS 5Y37.22%
EPS Q2Q%N/A
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y24.54%
Revenue growth 5Y19.67%
Sales Q2Q%8.16%
3.2 Future
The Earnings Per Share is expected to grow by 20.35% on average over the next years. This is a very strong growth
SSL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.52% yearly.
EPS Next Y-51.23%
EPS Next 2Y5.89%
EPS Next 3Y9.4%
EPS Next 5Y20.35%
Revenue Next Year-2.68%
Revenue Next 2Y7.52%
Revenue Next 3Y6.52%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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.
4. Valuation
4.1 Price/Earnings Ratio
SSL is valuated quite expensively with a Price/Earnings ratio of 55.53.
Compared to the rest of the industry, the Price/Earnings ratio of SSL indicates a rather cheap valuation: SSL is cheaper than 86.55% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.27. SSL is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 32.71, the valuation of SSL can be described as expensive.
Based on the Price/Forward Earnings ratio, SSL is valued cheaply inside the industry as 87.36% of the companies are valued more expensively.
SSL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 96.48.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.53 | ||
| Fwd PE | 32.71 |
4.2 Price Multiples
SSL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SSL is cheaper than 88.99% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SSL is valued cheaply inside the industry as 94.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.04 | ||
| EV/EBITDA | 17.03 |
4.3 Compensation for Growth
The excellent profitability rating of SSL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.49
EPS Next 2Y5.89%
EPS Next 3Y9.4%
5. Dividend
5.1 Amount
SSL has a yearly dividend return of 0.88%, which is pretty low.
SSL's Dividend Yield is rather good when compared to the industry average which is at 7.63. SSL pays more dividend than 95.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, SSL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
SSL 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
49.17% of the earnings are spent on dividend by SSL. This is a bit on the high side, but may be sustainable.
DP49.17%
EPS Next 2Y5.89%
EPS Next 3Y9.4%
SANDSTORM GOLD LTD
TSX:SSL (2/13/2025, 7:00:00 PM)
9.44
+0.04 (+0.43%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners45.08%
Inst Owner ChangeN/A
Ins Owners1.07%
Ins Owner ChangeN/A
Market Cap2.80B
Analysts78.33
Price Target10.97 (16.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend0.06
Dividend Growth(5Y)N/A
DP49.17%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.08%
Min EPS beat(2)-38.54%
Max EPS beat(2)40.71%
EPS beat(4)2
Avg EPS beat(4)24.8%
Min EPS beat(4)-199.01%
Max EPS beat(4)296.04%
EPS beat(8)3
Avg EPS beat(8)-6.56%
EPS beat(12)5
Avg EPS beat(12)21.77%
EPS beat(16)5
Avg EPS beat(16)6.71%
Revenue beat(2)0
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-1.44%
Max Revenue beat(2)-0.09%
Revenue beat(4)2
Avg Revenue beat(4)0.95%
Min Revenue beat(4)-1.44%
Max Revenue beat(4)4.66%
Revenue beat(8)3
Avg Revenue beat(8)-0.34%
Revenue beat(12)5
Avg Revenue beat(12)-0.18%
Revenue beat(16)6
Avg Revenue beat(16)-1.75%
PT rev (1m)1.39%
PT rev (3m)6.08%
EPS NQ rev (1m)-3.1%
EPS NQ rev (3m)-7.15%
EPS NY rev (1m)3.46%
EPS NY rev (3m)-6.82%
Revenue NQ rev (1m)-9.62%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.53 | ||
| Fwd PE | 32.71 | ||
| P/S | 11.3 | ||
| P/FCF | 16.04 | ||
| P/OCF | 14.2 | ||
| P/B | 1.37 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 17.03 |
EPS(TTM)0.17
EY1.8%
EPS(NY)0.29
Fwd EY3.06%
FCF(TTM)0.59
FCFY6.23%
OCF(TTM)0.66
OCFY7.04%
SpS0.84
BVpS6.9
TBVpS6.9
PEG (NY)N/A
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 2.47% | ||
| ROCE | 3.7% | ||
| ROIC | 2.66% | ||
| ROICexc | 2.69% | ||
| ROICexgc | 2.69% | ||
| OM | 39.77% | ||
| PM (TTM) | 20.46% | ||
| GM | 51.03% | ||
| FCFM | 70.45% |
ROA(3y)3.53%
ROA(5y)3.07%
ROE(3y)4.37%
ROE(5y)3.63%
ROIC(3y)3.05%
ROIC(5y)2.99%
ROICexc(3y)3.11%
ROICexc(5y)3.19%
ROICexgc(3y)3.11%
ROICexgc(5y)3.19%
ROCE(3y)4.23%
ROCE(5y)4.15%
ROICexcg growth 3Y-18.79%
ROICexcg growth 5Y1.51%
ROICexc growth 3Y-18.79%
ROICexc growth 5Y1.51%
OM growth 3Y-0.57%
OM growth 5Y7.94%
PM growth 3Y16.1%
PM growth 5Y23.57%
GM growth 3Y-2.32%
GM growth 5Y3.68%
F-Score9
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.1 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 23.96% | ||
| Cap/Sales | 9.15% | ||
| Interest Coverage | 1.95 | ||
| Cash Conversion | 102.1% | ||
| Profit Quality | 344.38% | ||
| Current Ratio | 2.29 | ||
| Quick Ratio | 2.29 | ||
| Altman-Z | 2.96 |
F-Score9
WACC9.31%
ROIC/WACC0.29
Cap/Depr(3y)493.55%
Cap/Depr(5y)330.22%
Cap/Sales(3y)187.35%
Cap/Sales(5y)126.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.33%
EPS 3Y17.84%
EPS 5Y37.22%
EPS Q2Q%N/A
EPS Next Y-51.23%
EPS Next 2Y5.89%
EPS Next 3Y9.4%
EPS Next 5Y20.35%
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y24.54%
Revenue growth 5Y19.67%
Sales Q2Q%8.16%
Revenue Next Year-2.68%
Revenue Next 2Y7.52%
Revenue Next 3Y6.52%
Revenue Next 5YN/A
EBIT growth 1Y2.03%
EBIT growth 3Y23.83%
EBIT growth 5Y29.17%
EBIT Next Year110.23%
EBIT Next 3Y35.37%
EBIT Next 5Y30.9%
FCF growth 1Y126.87%
FCF growth 3Y28.51%
FCF growth 5Y141.64%
OCF growth 1Y37.74%
OCF growth 3Y32.54%
OCF growth 5Y26.26%