SPROTT INC (SII.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SII - CA8520662088 - Common Stock
180.84 CAD
+5.22 (+2.97%)
SII gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 78 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 shows excellent growth, but is valued quite expensive already. These ratings could make SII a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
- In the past year SII was profitable.
- SII had a positive operating cash flow in the past year.
- Each year in the past 5 years SII has been profitable.
- Each year in the past 5 years SII had a positive operating cash flow.
1.2 Ratios
- SII has a Return On Assets of 10.79%. This is in the better half of the industry: SII outperforms 75.31% of its industry peers.
- SII's Return On Equity of 14.59% is fine compared to the rest of the industry. SII outperforms 75.31% of its industry peers.
- SII's Return On Invested Capital of 13.30% is amongst the best of the industry. SII outperforms 90.12% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SII is in line with the industry average of 10.50%.
- The last Return On Invested Capital (13.30%) for SII is above the 3 year average (12.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.79% | ||
| ROE | 14.59% | ||
| ROIC | 13.3% |
ROA(3y)9.43%
ROA(5y)8.91%
ROE(3y)11.75%
ROE(5y)11.19%
ROIC(3y)12.24%
ROIC(5y)11.62%
1.3 Margins
- With a decent Profit Margin value of 23.26%, SII is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- SII's Profit Margin has improved in the last couple of years.
- SII has a Operating Margin of 32.49%. This is in the better half of the industry: SII outperforms 70.37% of its industry peers.
- In the last couple of years the Operating Margin of SII has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.49% | ||
| PM (TTM) | 23.26% | ||
| GM | N/A |
OM growth 3Y8.36%
OM growth 5Y15.75%
PM growth 3Y11.01%
PM growth 5Y14.73%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- Compared to 1 year ago, SII has more shares outstanding
- Compared to 5 years ago, SII has more shares outstanding
- There is no outstanding debt for SII. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 17.72 indicates that SII is not in any danger for bankruptcy at the moment.
- SII's Altman-Z score of 17.72 is amongst the best of the industry. SII outperforms 92.59% of its industry peers.
- SII has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 17.72 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 2.14 indicates that SII has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.14, SII is in the better half of the industry, outperforming 70.37% of the companies in the same industry.
- A Quick Ratio of 2.14 indicates that SII has no problem at all paying its short term obligations.
- SII has a Quick ratio of 2.14. This is in the better half of the industry: SII outperforms 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.14 | ||
| Quick Ratio | 2.14 |
3. Growth
3.1 Past
- SII shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.98%.
- The Earnings Per Share has been growing by 38.46% on average over the past years. This is a very strong growth
- SII shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.34%.
- SII shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.44% yearly.
EPS 1Y (TTM)5.98%
EPS 3Y13.88%
EPS 5Y38.46%
EPS Q2Q%2%
Revenue 1Y (TTM)22.34%
Revenue growth 3Y2.77%
Revenue growth 5Y19.44%
Sales Q2Q%40.01%
3.2 Future
- SII is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.14% yearly.
- SII is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.02% yearly.
EPS Next Y14.55%
EPS Next 2Y35.49%
EPS Next 3Y30.14%
EPS Next 5YN/A
Revenue Next Year33.06%
Revenue Next 2Y18.01%
Revenue Next 3Y15.02%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 67.48 indicates a quite expensive valuation of SII.
- SII's Price/Earnings ratio is a bit more expensive when compared to the industry. SII is more expensive than 71.60% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. SII is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 37.28, SII can be considered very expensive at the moment.
- SII's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. SII is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.48 | ||
| Fwd PE | 37.28 |
4.2 Price Multiples
- SII's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SII indicates a somewhat cheap valuation: SII is cheaper than 65.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.9 | ||
| EV/EBITDA | 45.51 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- SII has a very decent profitability rating, which may justify a higher PE ratio.
- SII's earnings are expected to grow with 30.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.64
PEG (5Y)1.75
EPS Next 2Y35.49%
EPS Next 3Y30.14%
5. Dividend
5.1 Amount
- SII has a yearly dividend return of 0.99%, which is pretty low.
- SII's Dividend Yield is a higher than the industry average which is at 1.74.
- Compared to an average S&P500 Dividend Yield of 1.81, SII's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
- The dividend of SII has a limited annual growth rate of 2.42%.
- 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)2.42%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
- 61.58% of the earnings are spent on dividend by SII. This is not a sustainable payout ratio.
- The dividend of SII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP61.58%
EPS Next 2Y35.49%
EPS Next 3Y30.14%
SPROTT INC / SII.CA FAQ
What is the ChartMill fundamental rating of SPROTT INC (SII.CA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to SII.CA.
What is the valuation status of SPROTT INC (SII.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to SPROTT INC (SII.CA). This can be considered as Overvalued.
How profitable is SPROTT INC (SII.CA) stock?
SPROTT INC (SII.CA) has a profitability rating of 7 / 10.
What is the valuation of SPROTT INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SPROTT INC (SII.CA) is 67.48 and the Price/Book (PB) ratio is 9.83.
What is the financial health of SPROTT INC (SII.CA) stock?
The financial health rating of SPROTT INC (SII.CA) is 8 / 10.