TSX:SMT

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Good value with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

36.6%

SMT

-0.9%

CA Metals and Mining

-1.0%

CA Market


1 Year Return

56.4%

SMT

54.1%

CA Metals and Mining

-4.3%

CA Market

Return vs Industry: SMT exceeded the Canadian Metals and Mining industry which returned 54.2% over the past year.

Return vs Market: SMT exceeded the Canadian Market which returned -4.2% over the past year.


Shareholder returns

SMTIndustryMarket
7 Day36.6%-0.9%-1.0%
30 Day52.2%-1.2%1.3%
90 Day35.3%-1.2%1.9%
1 Year56.4%56.4%55.3%54.1%-0.9%-4.3%
3 Year-9.7%-9.7%58.2%55.1%6.4%-4.0%
5 Year133.3%133.3%151.2%143.4%33.3%12.8%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SMT (CA$2.8) is trading below our estimate of fair value (CA$44.05)

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


Price To Earnings Ratio

PE vs Industry: SMT is poor value based on its PE Ratio (75.4x) compared to the CA Metals and Mining industry average (23.8x).

PE vs Market: SMT is poor value based on its PE Ratio (75.4x) compared to the Canadian market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: SMT is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: SMT is good value based on its PB Ratio (2x) compared to the CA Metals and Mining industry average (2.8x).


Next Steps

Future Growth

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

124.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMT's forecast earnings growth (124.8% per year) is above the savings rate (1.7%).

Earnings vs Market: SMT's earnings (124.8% per year) are forecast to grow faster than the Canadian market (21.1% per year).

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

Revenue vs Market: SMT's revenue (15.4% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: SMT's revenue (15.4% 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 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?

51.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SMT has high quality earnings.

Growing Profit Margin: SMT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SMT has become profitable over the past 5 years, growing earnings by 51.4% per year.

Accelerating Growth: SMT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SMT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (78.5%).


Return on Equity

High ROE: SMT's Return on Equity (3.7%) is considered low.


Next Steps

Financial Health

How is Sierra Metals's financial position?


Financial Position Analysis

Short Term Liabilities: SMT's short term assets ($90.3M) exceed its short term liabilities ($40.9M).

Long Term Liabilities: SMT's short term assets ($90.3M) do not cover its long term liabilities ($142.1M).


Debt to Equity History and Analysis

Debt Level: SMT's debt to equity ratio (47.1%) is considered high.

Reducing Debt: SMT's debt to equity ratio has increased from 33.9% to 47.1% over the past 5 years.

Debt Coverage: SMT's debt is well covered by operating cash flow (47.8%).

Interest Coverage: SMT's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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

1.4yrs

Average management tenure


CEO

Luis Marchese Montenegro (53 yo)

0.33

Tenure

Mr. Luis Carlos Marchese Montenegro has been President & Chief Executive Officer at Sierra Metals Inc. since June 1, 2020. He serves as Managing Director and Director of Compania Minera San Ignacio de Moro ...


Leadership Team

NamePositionTenureCompensationOwnership
Edmundo Guimaraes
Chief Financial Officer5.92yrsUS$526.62k0.31%
$ 1.1m
Michael McAllister
Vice President of Investor Relations1.42yrsUS$290.28k0.048%
$ 171.2k
Alonso Lujan
VP of Exploration & Country Manager of Mexico4.08yrsUS$411.79k0.020%
$ 71.4k
Luis Marchese Montenegro
President0.33yrno data0.074%
$ 260.4k
James León
GM of Yauricocha & Country Manager of Peru0.67yrno datano data
Jill Neff
Corporate Secretary7.5yrsno data0.028%
$ 100.0k
Rajesh Vyas
Corporate Controller0.83yrno data0.0074%
$ 26.0k

1.4yrs

Average Tenure

Experienced Management: SMT's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Luis Marchese Montenegro
President0.33yrno data0.074%
$ 260.4k
Steven Dean
Independent Director9yrsUS$220.49k0.17%
$ 610.3k
Dionisio Romero Paoletti
Independent Director4.92yrsUS$154.88k0.34%
$ 1.2m
Alberto Beeck
Adviser to the Board2.83yrsno datano data
Jesus Alberto Arias
Chairman of the Board7.58yrsUS$154.88kno data
Douglas Cater
Independent Director11.33yrsUS$154.88k0.22%
$ 772.6k
Koko Yamamoto
Independent Director1.25yrsUS$64.81k0.0034%
$ 12.0k
Jose Vizquerra-Benavides
Independent Director2.92yrsUS$154.88k0.016%
$ 56.6k
Ricardo Arrarte Grau
Director1.5yrsUS$115.30kno data

2.9yrs

Average Tenure

53yo

Average Age

Experienced Board: SMT's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: SMT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$353.299m
  • Shares outstanding: 162.81m
  • 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 Analysis2020/10/21 23:55
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
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.