Sprott (TSX:SII) - Share price, News & Analysis

SII fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	1/6
Past Performance	5/6
Financial Health	5/6
Dividends	2/6

SII Stock Overview

Sprott Inc. is a publicly owned asset management holding company.

Rewards

Revenue is forecast to grow 14.71% per year

Earnings grew by 25.1% over the past year

Risk Analysis

Dividend of 2.78% is not well covered by earnings

Significant insider selling over the past 3 months

Sprott Competitors

IGM Financial

TSX:IGM

CA$8.8b

CI Financial

TSX:CIX

CA$2.9b

Fiera Capital

TSX:FSZ

CA$948.3m

Guardian Capital Group

TSX:GCG.A

CA$718.4m

Price History & Performance

Summary of all time highs, changes and price drops for Sprott
Historical stock prices
Current Share Price	CA$46.17
52 Week High	CA$71.70
52 Week Low	CA$41.72
Beta	1.22
1 Month Change	-34.24%
3 Month Change	-5.45%
1 Year Change	-16.66%
3 Year Change	52.38%
5 Year Change	92.38%
Change since IPO	-53.08%

Shareholder Returns

	SII	CA Capital Markets	CA Market
7D	1.1%	-1.8%	0.8%
1Y	-16.7%	-3.9%	4.8%

Return vs Industry: SII underperformed the Canadian Capital Markets industry which returned -6% over the past year.

Return vs Market: SII underperformed the Canadian Market which returned 4.6% over the past year.

Price Volatility

Is SII's price volatile compared to industry and market?
SII volatility
SII Average Weekly Movement	7.6%
Capital Markets Industry Average Movement	6.2%
Market Average Movement	9.9%
10% most volatile stocks in CA Market	16.9%
10% least volatile stocks in CA Market	4.4%

Stable Share Price: SII is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: SII's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2008	173	Peter Grosskopf	https://www.sprott.com

Sprott Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides asset management, portfolio management, wealth management, fund management, and administrative and consulting services to its clients. It offers mutual funds, hedge funds, and offshore funds, along with managed accounts.

Sprott Fundamentals Summary

How do Sprott's earnings and revenue compare to its market cap?
SII fundamental statistics
Market Cap	US$902.76m
Earnings (TTM)	US$36.44m
Revenue (TTM)	US$167.36m

24.8x

P/E Ratio

5.4x

P/S Ratio

Is SII overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SII income statement (TTM)
Revenue	US$167.36m
Cost of Revenue	US$87.61m
Gross Profit	US$79.75m
Other Expenses	US$43.31m
Earnings	US$36.44m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.45
Gross Margin	47.65%
Net Profit Margin	21.77%
Debt/Equity Ratio	12.7%

How did SII perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

68%

Payout Ratio

Valuation

Is Sprott undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

24.78x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: SII (CA$46.17) is trading above our estimate of fair value (CA$17.88)

Significantly Below Fair Value: SII is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: SII is poor value based on its PE Ratio (24.8x) compared to the Canadian Capital Markets industry average (12.2x).

PE vs Market: SII is poor value based on its PE Ratio (24.8x) compared to the Canadian market (11.5x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SII's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: SII is overvalued based on its PB Ratio (3x) compared to the CA Capital Markets industry average (1.4x).

Future Growth

How is Sprott forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

14.7%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SII's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if SII's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SII's revenue (14.7% per year) is forecast to grow faster than the Canadian market (6.4% per year).

High Growth Revenue: SII's revenue (14.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if SII's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Sprott performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

3.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SII has high quality earnings.

Growing Profit Margin: SII's current net profit margins (21.8%) are higher than last year (20.2%).

Past Earnings Growth Analysis

Earnings Trend: SII's earnings have grown by 3.1% per year over the past 5 years.

Accelerating Growth: SII's earnings growth over the past year (25.1%) exceeds its 5-year average (3.1% per year).

Earnings vs Industry: SII earnings growth over the past year (25.1%) exceeded the Capital Markets industry -18.2%.

Return on Equity

High ROE: SII's Return on Equity (12.1%) is considered low.

Financial Health

How is Sprott's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SII's short term assets ($79.4M) exceed its short term liabilities ($27.8M).

Long Term Liabilities: SII's short term assets ($79.4M) exceed its long term liabilities ($51.6M).

Debt to Equity History and Analysis

Debt Level: SII has more cash than its total debt.

Reducing Debt: Insufficient data to determine if SII's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SII's debt is well covered by operating cash flow (101.7%).

Interest Coverage: SII's interest payments on its debt are well covered by EBIT (42.8x coverage).

Balance Sheet

Dividend

What is Sprott current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.78%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SII's dividend (2.78%) is higher than the bottom 25% of dividend payers in the Canadian market (1.89%).

High Dividend: SII's dividend (2.78%) is low compared to the top 25% of dividend payers in the Canadian market (4.92%).

Stability and Growth of Payments

Stable Dividend: SII's dividend payments have been volatile in the past 10 years.

Growing Dividend: SII's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (68.4%), SII's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (100.8%), SII's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure

CEO

Peter Grosskopf (56 yo)

11.67yrs

Tenure

US$2,902,479

Compensation

Mr. Peter Fritz Grosskopf, CFA, serves as the Director at Resource Capital Investment Corporation. He serves as an Independent Director at Agnico Eagle Mines Limited since February 8, 2022. He also served...

CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD2.90M) is above average for companies of similar size in the Canadian market ($USD1.51M).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: SII's management team is considered experienced (4 years average tenure).

Board Members

Experienced Board: SII's board of directors are considered experienced (5.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: SII insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31