TSX:S

Stock Analysis Report

Sherritt International

Executive Summary

Sherritt International Corporation engages in the mining, refining, and sale of nickel and cobalt from lateritic ores primarily in Europe, Japan, and China.


Snowflake Analysis

Fair value with imperfect balance sheet.


Similar Companies

Share Price & News

How has Sherritt International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: S's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

S

-6.0%

CA Metals and Mining

-6.2%

CA Market


1 Year Return

-64.2%

S

2.2%

CA Metals and Mining

-2.0%

CA Market

Return vs Industry: S underperformed the Canadian Metals and Mining industry which returned 2.2% over the past year.

Return vs Market: S underperformed the Canadian Market which returned -2% over the past year.


Shareholder returns

SIndustryMarket
7 Day0%-6.0%-6.2%
30 Day-7.1%-1.0%-5.0%
90 Day-8.1%4.9%-2.8%
1 Year-64.2%-64.2%2.9%2.2%1.1%-2.0%
3 Year-85.1%-85.1%-2.8%-4.5%10.7%0.6%
5 Year-92.3%-92.4%25.0%21.4%27.6%8.9%

Price Volatility Vs. Market

How volatile is Sherritt International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

39.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: S (CA$0.17) is trading below our estimate of fair value (CA$0.28)

Significantly Below Fair Value: S is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: S is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: S is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: S is good value based on its PB Ratio (0.1x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Sherritt International forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

69.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: S is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: S is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: S is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: S's revenue is expected to decline over the next 3 years (-11.5% per year).

High Growth Revenue: S's revenue is forecast to decline over the next 3 years (-11.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Sherritt International performed over the past 5 years?

36.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: S is currently unprofitable.

Growing Profit Margin: S is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: S is unprofitable, but has reduced losses over the past 5 years at a rate of 36.5% per year.

Accelerating Growth: Unable to compare S's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: S is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.8%).


Return on Equity

High ROE: S has a negative Return on Equity (-50.51%), as it is currently unprofitable.


Next Steps

Financial Health

How is Sherritt International's financial position?


Financial Position Analysis

Short Term Liabilities: S's short term assets (CA$377.7M) exceed its short term liabilities (CA$330.7M).

Long Term Liabilities: S's short term assets (CA$377.7M) do not cover its long term liabilities (CA$685.3M).


Debt to Equity History and Analysis

Debt Level: S's debt to equity ratio (98.8%) is considered high.

Reducing Debt: S's debt to equity ratio has increased from 60.8% to 98.8% over the past 5 years.


Balance Sheet

Inventory Level: S has a low level of unsold assets or inventory.

Debt Coverage by Assets: S's debt is not covered by short term assets (assets are 0.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: S has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if S has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Sherritt International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate S's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate S's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if S's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if S's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: S is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of S's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

6.2yrs

Average management tenure


CEO

David Pathe (48yo)

8.1yrs

Tenure

CA$3,457,561

Compensation

Mr. David V. Pathe has been the Chief Executive Officer and President of Sherritt International Corporation since January 1, 2012. Mr. Pathe served as the Chief Financial Officer of Sherritt International  ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD2.59M) is above average for companies of similar size in the Canadian market ($USD157.16K).

Compensation vs Earnings: David's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
David Pathe
President & CEO8.1yrsCA$3.46m0.097% CA$65.2k
Andrew Snowden
Senior VP & CFO3.1yrsCA$1.09m0.038% CA$25.6k
Stephen Wood
Executive VP & COO4.8yrsCA$1.49m0.036% CA$24.6k
Elvin Saruk
Senior Vice President of Oil7.8yrsCA$1.26m0.034% CA$22.8k
Timothy Dobson
Senior Vice President of Metals2.4yrsCA$1.37mno data
John Marsh
Director of Technologies Projects0yrsno datano data
Susan Earle
Vice President of Administration and Controller16.8yrsno datano data
Joe Racanelli
Director of Investor Relations0yrsno datano data
Edward Sellers
Senior VP6.3yrsCA$1.05mno data
Karen Trenton
Senior Vice President of Human Resources6yrsno data0.053% CA$35.6k

6.2yrs

Average Tenure

Experienced Management: S's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Pathe
President & CEO8.1yrsCA$3.46m0.097% CA$65.2k
Richard Lapthorne
Chairman0.7yrsCA$185.00k0.023% CA$15.4k
John Warwick
Non-Executive Director2.7yrsCA$180.00k0.025% CA$17.0k
William Loader
Corporate Director6.6yrsCA$200.00k0.0048% CA$3.2k
Lisa Pankratz
Non-Executive Director6.3yrsCA$195.00k0.0074% CA$5.0k
Timothy Baker
Corporate Director5.8yrsCA$185.00k0.018% CA$12.3k
Maryse Bélanger
Independent Director2yrsCA$139.00kno data

5.8yrs

Average Tenure

66yo

Average Age

Experienced Board: S's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Sherritt International Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sherritt International Corporation
  • Ticker: S
  • Exchange: TSX
  • Founded: 1927
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$67.538m
  • Shares outstanding: 397.28m
  • Website: https://www.sherritt.com

Number of Employees


Location

  • Sherritt International Corporation
  • Bay Adelaide Centre
  • East Tower
  • Toronto
  • Ontario
  • M5H 4E3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STSX (The Toronto Stock Exchange)YesRestricted Voting SharesCACADJun 1996
HRTDB (Deutsche Boerse AG)YesRestricted Voting SharesDEEURJun 1996
SHER.FOTCPK (Pink Sheets LLC)YesRestricted Voting SharesUSUSDJun 1996

Biography

Sherritt International Corporation engages in the mining, refining, and sale of nickel and cobalt from lateritic ores primarily in Europe, Japan, and China. It produces and sells agriculture fertilizers in Western Canada; and provides additional fertilizer storage and administrative facilities in Fort Saskatchewan, Alberta, and Canada. The company also explores for and produces oil and gas primarily from offshore reservoirs located in the north coast of Cuba. It has interests in four production-sharing contracts; working-interests in various oil fields and related production platform located in the Gulf of Valencia in Spain; and a working interest in a natural gas field in Pakistan. In addition, the company produces and sells by-products, such as condensate and liquefied petroleum gas; and crystalline ammonium sulphate primarily into agricultural markets in Africa and Asia, as well as generates and sells electricity from natural gas and steam facilities. As at December 31, 2018, its facilities had a total capacity of 506 megawatts. The company operates two combined cycle plants at Varadero and Boca de Jaruco; and has two nickel deposits located near Moramanga in Madagascar. Sherritt International Corporation was founded in 1927 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:08
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.