SIERRA METALS INC (SMT.CA) Stock Fundamental Analysis
TSX:SMT - Toronto Stock Exchange - CA82639W1068 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to SMT. SMT was compared to 818 industry peers in the Metals & Mining industry. SMT has a medium profitability rating, but doesn't score so well on its financial health evaluation. SMT is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
SMT had negative 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.
In the past 5 years SMT always reported a positive cash flow from operatings.
1.2 Ratios
SMT has a Return On Assets of -1.39%. This is amongst the best in the industry. SMT outperforms 81.76% of its industry peers.
With a decent Return On Equity value of -5.49%, SMT is doing good in the industry, outperforming 71.22% of the companies in the same industry.
SMT has a Return On Invested Capital of 6.30%. This is amongst the best in the industry. SMT outperforms 93.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.39% | ||
| ROE | -5.49% | ||
| ROIC | 6.3% |
ROA(3y)-13.75%
ROA(5y)-6.97%
ROE(3y)-49.7%
ROE(5y)-27%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SMT's Operating Margin of 8.80% is amongst the best of the industry. SMT outperforms 89.59% of its industry peers.
SMT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 26.88%, SMT belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
SMT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.8% | ||
| PM (TTM) | N/A | ||
| GM | 26.88% |
OM growth 3Y-33.99%
OM growth 5Y-25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.92%
GM growth 5Y-9.36%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SMT is destroying value.
SMT has more shares outstanding than it did 1 year ago.
SMT has more shares outstanding than it did 5 years ago.
SMT has a better debt/assets ratio than last year.
2.2 Solvency
SMT has an Altman-Z score of 0.53. This is a bad value and indicates that SMT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.53, SMT is in line with its industry, outperforming 43.78% of the companies in the same industry.
SMT has a debt to FCF ratio of 185.70. This is a negative value and a sign of low solvency as SMT would need 185.70 years to pay back of all of its debts.
SMT has a better Debt to FCF ratio (185.70) than 88.24% of its industry peers.
A Debt/Equity ratio of 1.14 is on the high side and indicates that SMT has dependencies on debt financing.
SMT has a Debt to Equity ratio of 1.14. This is amonst the worse of the industry: SMT underperforms 82.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 185.7 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.64
WACC9.87%
2.3 Liquidity
A Current Ratio of 0.86 indicates that SMT may have some problems paying its short term obligations.
With a Current ratio value of 0.86, SMT is not doing good in the industry: 66.62% of the companies in the same industry are doing better.
A Quick Ratio of 0.54 indicates that SMT may have some problems paying its short term obligations.
The Quick ratio of SMT (0.54) is worse than 72.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for SMT have decreased strongly by -400.00% in the last year.
The Revenue has grown by 12.45% in the past year. This is quite good.
Measured over the past years, SMT shows a decrease in Revenue. The Revenue has been decreasing by -0.25% on average per year.
EPS 1Y (TTM)-400%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
Revenue 1Y (TTM)12.45%
Revenue growth 3Y-2.4%
Revenue growth 5Y-0.25%
Sales Q2Q%24.53%
3.2 Future
The Earnings Per Share is expected to grow by 150.85% on average over the next years. This is a very strong growth
Based on estimates for the next years, SMT will show a quite strong growth in Revenue. The Revenue will grow by 11.30% on average per year.
EPS Next Y302%
EPS Next 2Y150.85%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.64%
Revenue Next 2Y11.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
SMT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
SMT is valuated cheaply with a Price/Forward Earnings ratio of 3.28.
97.97% of the companies in the same industry are more expensive than SMT, based on the Price/Forward Earnings ratio.
SMT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 3.28 |
4.2 Price Multiples
SMT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SMT is cheaper than 97.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SMT is valued cheaply inside the industry as 89.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 228.35 | ||
| EV/EBITDA | 3.02 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SMT's earnings are expected to grow with 150.85% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y150.85%
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 (2/21/2025, 7:00:00 PM)
0.8
-0.04 (-4.76%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners2.05%
Inst Owner ChangeN/A
Ins Owners2.5%
Ins Owner ChangeN/A
Market Cap169.54M
Analysts45.71
Price Target1.12 (40%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-25.74%
Min EPS beat(2)-50.49%
Max EPS beat(2)-0.99%
EPS beat(4)1
Avg EPS beat(4)-74.75%
Min EPS beat(4)-545.54%
Max EPS beat(4)298.02%
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)0%
EPS NQ rev (3m)0%
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)4.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 3.28 | ||
| P/S | 0.47 | ||
| P/FCF | 228.35 | ||
| P/OCF | 2.17 | ||
| P/B | 1.4 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 3.02 |
EPS(TTM)-0.04
EYN/A
EPS(NY)0.24
Fwd EY30.47%
FCF(TTM)0
FCFY0.44%
OCF(TTM)0.37
OCFY46.16%
SpS1.69
BVpS0.57
TBVpS0.57
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.39% | ||
| ROE | -5.49% | ||
| ROCE | 9.06% | ||
| ROIC | 6.3% | ||
| ROICexc | 6.8% | ||
| ROICexgc | 6.8% | ||
| OM | 8.8% | ||
| PM (TTM) | N/A | ||
| GM | 26.88% | ||
| FCFM | 0.21% |
ROA(3y)-13.75%
ROA(5y)-6.97%
ROE(3y)-49.7%
ROE(5y)-27%
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-28.31%
ROICexcg growth 5Y-21.77%
ROICexc growth 3Y-28.31%
ROICexc growth 5Y-21.77%
OM growth 3Y-33.99%
OM growth 5Y-25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.92%
GM growth 5Y-9.36%
F-Score6
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 185.7 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 135.08% | ||
| Cap/Sales | 21.65% | ||
| Interest Coverage | 2.69 | ||
| Cash Conversion | 88.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.53 |
F-Score6
WACC9.87%
ROIC/WACC0.64
Cap/Depr(3y)125.71%
Cap/Depr(5y)122.87%
Cap/Sales(3y)21.82%
Cap/Sales(5y)20.78%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-400%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
EPS Next Y302%
EPS Next 2Y150.85%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.45%
Revenue growth 3Y-2.4%
Revenue growth 5Y-0.25%
Sales Q2Q%24.53%
Revenue Next Year8.64%
Revenue Next 2Y11.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y228.67%
EBIT growth 3Y-35.58%
EBIT growth 5Y-25.19%
EBIT Next Year310%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y101.59%
FCF growth 3Y-41.55%
FCF growth 5Y-13.22%
OCF growth 1Y241.59%
OCF growth 3Y-9.17%
OCF growth 5Y-4.11%