TSX:SMT

Stock Analysis Report

Executive Summary

Sierra Metals Inc. focuses on the production, exploration, and development of precious and base metals in Peru and Mexico.

Snowflake

Fundamentals

Limited growth with worrying balance sheet.

Share Price & News

How has Sierra Metals's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

31.6%

SMT

-0.3%

CA Metals and Mining

-0.3%

CA Market


1 Year Return

-41.5%

SMT

19.1%

CA Metals and Mining

4.8%

CA Market

Return vs Industry: SMT underperformed the Canadian Metals and Mining industry which returned 19.1% over the past year.

Return vs Market: SMT underperformed the Canadian Market which returned 4.8% over the past year.


Shareholder returns

SMTIndustryMarket
7 Day31.6%-0.3%-0.3%
30 Day-3.0%-9.3%-3.3%
90 Day-10.1%-6.0%-1.6%
1 Year-41.5%-41.5%20.1%19.1%8.5%4.8%
3 Year-2.7%-2.7%-9.4%-11.0%14.8%4.5%
5 Year11.9%11.9%20.0%15.9%26.6%8.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.3x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SMT's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SMT's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

PE vs Market: SMT 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 SMT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SMT is overvalued based on its PB Ratio (1.3x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Sierra Metals forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

171.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: SMT's revenue (30.8% per year) is forecast to grow faster than the Canadian market (5.6% per year).

High Growth Revenue: SMT's revenue (30.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Sierra Metals performed over the past 5 years?

31.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SMT is unprofitable, but has reduced losses over the past 5 years at a rate of 31% per year.

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

Earnings vs Industry: SMT is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-11.9%).


Return on Equity

High ROE: SMT has a negative Return on Equity (0.96%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: SMT is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: SMT is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Sierra Metals's financial position?


Financial Position Analysis

Short Term Liabilities: SMT's short term assets ($100.7M) exceeds its short term liabilities ($49.7M)

Long Term Liabilities: SMT's short term assets (100.7M) do not cover its long term liabilities (143.9M)


Debt to Equity History and Analysis

Debt Level: SMT's debt to equity ratio (48.9%) is considered high

Reducing Debt: SMT's debt to equity ratio has increased from 38.8% to 48.9% over the past 5 years.


Balance Sheet

Inventory Level: SMT has a high level of physical assets or inventory.

Debt Coverage by Assets: SMT's debt is covered by short term assets (assets are 1x 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: Insufficient data to determine if SMT has enough cash runway based on its current free cash flow.

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


Next Steps

Dividend

What is Sierra Metals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%6.0%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Sierra Metals's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average management tenure


CEO

Igor Alcides Gonzáles Galindo (64yo)

2.4yrs

Tenure

US$1,513,491

Compensation

Mr. Igor Alcides Gonzales Galindo has been the President and Chief Executive Officer of Sierra Metals Inc. since May 1, 2017. Mr. Galindo served as Vice President of Operations at Compañía de Minas Buenave ...


CEO Compensation Analysis

Compensation vs. Market: Igor Alcides has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Canadian market.

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


Management Age and Tenure

3.9yrs

Average Tenure

Experienced Management: SMT's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

54yo

Average Age

Experienced Board: SMT's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$104,00016 Jan 19
Arias Resource Capital Management LP
EntityCompany
Shares40,000
Max PriceUS$2.60
BuyUS$1,28015 Jan 19
Michael McAllister
EntityIndividual
Role
Head of Investor Relations
Vice President of Investor Relations
Shares500
Max PriceUS$2.56
BuyUS$66,47709 Jan 19
Arias Resource Capital Management LP
EntityCompany
Shares26,100
Max PriceUS$2.55
BuyUS$675,49507 Jan 19
Arias Resource Capital Management LP
EntityCompany
Shares278,700
Max PriceUS$2.46
BuyUS$223,99902 Jan 19
Arias Resource Capital Management LP
EntityCompany
Shares95,400
Max PriceUS$2.35
BuyUS$209,21801 Jan 19
Arias Resource Capital Management LP
EntityCompany
Shares87,085
Max PriceUS$2.42
BuyUS$3,64222 Dec 18
Igor Alcides Gonzáles Galindo
EntityIndividual
Role
Chief Executive Officer
President
Shares1,200
Max PriceUS$3.03
BuyUS$7,94522 Dec 18
Jill Neff
EntityIndividual
Role
Secretary
Corporate Secretary
Shares3,500
Max PriceUS$2.27
SellUS$785,01020 Dec 18
Philip Renaud
EntityIndividual
Shares300,000
Max PriceUS$2.62
SellUS$31,32019 Dec 18
Philip Renaud
EntityIndividual
Shares10,800
Max PriceUS$2.90

Ownership Breakdown


Management Team

  • Ed Guimaraes

    Chief Financial Officer

    • Tenure: 4.9yrs
    • Compensation: US$736.10k
  • Igor Alcides Gonzáles Galindo (64yo)

    President

    • Tenure: 2.4yrs
    • Compensation: US$1.51m
  • Mike McAllister (49yo)

    Vice President of Investor Relations

    • Tenure: 0.5yrs
  • Alonso Lujan

    VP of Exploration & GM of Dia Bras Mexicana

    • Tenure: 3.1yrs
    • Compensation: US$526.88k
  • Jill Neff

    Corporate Secretary

    • Tenure: 6.5yrs
  • Andrew Dunlop

    Corporate Controller

    • Tenure: 4.8yrs

Board Members

  • Steven Dean (59yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$198.68k
  • Igor Alcides Gonzáles Galindo (64yo)

    President

    • Tenure: 2.4yrs
    • Compensation: US$1.51m
  • Dionisio Romero Paoletti (54yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$137.62k
  • Alberto Beeck (63yo)

    Adviser to the Board

    • Tenure: 1.8yrs
  • Jesus Alberto Arias (52yo)

    Chairman of the Board

    • Tenure: 6.6yrs
    • Compensation: US$137.62k
  • Doug Cater (61yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$137.62k
  • Koko Yamamoto (47yo)

    Director

    • Tenure: 0.3yrs
  • Jose Vizquerra-Benavides (38yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$137.62k
  • Ricardo Arrarte Grau (52yo)

    Director

    • Tenure: 0.5yrs

Company Information

Sierra Metals Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sierra Metals Inc.
  • Ticker: SMT
  • Exchange: TSX
  • Founded: 1996
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$291.578m
  • Shares outstanding: 162.89m
  • Website: https://www.sierrametals.com

Number of Employees


Location

  • Sierra Metals Inc.
  • 161 Bay Street
  • Suite 4260
  • Toronto
  • Ontario
  • M5J 2S1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMTTSX (The Toronto Stock Exchange)YesCommon SharesCACADOct 1996
SMTSAMEX (NYSE MKT LLC)YesCommon SharesUSUSDOct 1996
SMTBVL (Bolsa de Valores de Lima)YesCommon SharesPEUSDOct 1996
DFXNDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 1996

Biography

Sierra Metals Inc. focuses on the production, exploration, and development of precious and base metals in Peru and Mexico. It primarily focuses on exploration of silver, copper, lead, zinc, and gold deposi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:34
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.