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Sierra Metals

TSX:SMT
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SMT
TSX
CA$350M
Market Cap
  1. Home
  2. CA
  3. Materials
Company description

Sierra Metals Inc. engages in the production, exploration, and development of precious and base metals in Peru and Mexico. The last earnings update was 128 days ago. More info.


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  • Sierra Metals has significant price volatility in the past 3 months.
SMT Share Price and Events
7 Day Returns
-0.9%
TSX:SMT
-2.1%
CA Metals and Mining
0.3%
CA Market
1 Year Returns
-37.1%
TSX:SMT
-5.9%
CA Metals and Mining
0.7%
CA Market
SMT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sierra Metals (SMT) -0.9% -6.1% -6.1% -37.1% 52.9% 28.1%
CA Metals and Mining -2.1% 1.4% 13.1% -5.9% 8.9% -22%
CA Market 0.3% 2% 13.2% 0.7% 16.6% 5.6%
1 Year Return vs Industry and Market
  • SMT underperformed the Metals and Mining industry which returned -5.9% over the past year.
  • SMT underperformed the Market in Canada which returned 0.7% over the past year.
Price Volatility
SMT
Industry
5yr Volatility vs Market

Value

 Is Sierra Metals undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sierra Metals to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sierra Metals.

TSX:SMT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.4%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:SMT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.18
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.181 (1 + (1- 26.5%) (22.78%))
1.253
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.25
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.253 * 5.96%)
9.42%

Discounted Cash Flow Calculation for TSX:SMT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sierra Metals is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:SMT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.42%)
2019 11.50 Est @ -22.79% 10.51
2020 9.73 Est @ -15.37% 8.13
2021 8.74 Est @ -10.17% 6.67
2022 8.17 Est @ -6.54% 5.70
2023 7.84 Est @ -3.99% 5.00
2024 7.67 Est @ -2.21% 4.47
2025 7.59 Est @ -0.96% 4.04
2026 7.59 Est @ -0.09% 3.69
2027 7.63 Est @ 0.52% 3.39
2028 7.70 Est @ 0.95% 3.13
Present value of next 10 years cash flows $54.73
TSX:SMT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $7.70 × (1 + 1.95%) ÷ (9.42% – 1.95%)
$105.07
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $105.07 ÷ (1 + 9.42%)10
$42.72
TSX:SMT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $54.73 + $42.72
$97.45
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $97.45 / 163.39
$0.6
TSX:SMT Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:SMT)
1.333
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $0.6 x 1.333
CA$0.8
Value per share (CAD) From above. CA$0.80
Current discount Discount to share price of CA$2.14
= -1 x (CA$2.14 - CA$0.80) / CA$0.80
-169.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Sierra Metals is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sierra Metals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sierra Metals's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:SMT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $0.14
TSX:SMT Share Price ** TSX (2019-03-20) in CAD CA$2.14
TSX:SMT Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.75 $1.61
Canada Metals and Mining Industry PE Ratio Median Figure of 115 Publicly-Listed Metals and Mining Companies 12.49x
Canada Market PE Ratio Median Figure of 542 Publicly-Listed Companies 14.78x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sierra Metals.

TSX:SMT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:SMT Share Price ÷ EPS (both in USD)

= 1.61 ÷ 0.14

11.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sierra Metals is good value based on earnings compared to the CA Metals and Mining industry average.
  • Sierra Metals is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Sierra Metals's expected growth come at a high price?
Raw Data
TSX:SMT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.1x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
57.8%per year
Canada Metals and Mining Industry PEG Ratio Median Figure of 35 Publicly-Listed Metals and Mining Companies 0.7x
Canada Market PEG Ratio Median Figure of 253 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

TSX:SMT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.1x ÷ 57.8%

0.19x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sierra Metals is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Sierra Metals's assets?
Raw Data
TSX:SMT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $1.08
TSX:SMT Share Price * TSX (2019-03-20) in CAD CA$2.14
TSX:SMT Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.75 $1.61
Canada Metals and Mining Industry PB Ratio Median Figure of 1,080 Publicly-Listed Metals and Mining Companies 1.44x
Canada Market PB Ratio Median Figure of 2,349 Publicly-Listed Companies 1.58x
TSX:SMT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:SMT Share Price ÷ Book Value per Share (both in USD)

= 1.61 ÷ 1.08

1.48x

* Primary Listing of Sierra Metals.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sierra Metals is overvalued based on assets compared to the CA Metals and Mining industry average.
X
Value checks
We assess Sierra Metals's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Sierra Metals has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Sierra Metals expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
57.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sierra Metals expected to grow at an attractive rate?
  • Sierra Metals's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Sierra Metals's earnings growth is expected to exceed the Canada market average.
  • Sierra Metals's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:SMT Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:SMT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 57.8%
TSX:SMT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 14.1%
Canada Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 33.3%
Canada Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 7%
Canada Market Earnings Growth Rate Market Cap Weighted Average 17.8%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:SMT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:SMT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31
2019-12-31 268 49 4
2018-12-31 232 30 4
TSX:SMT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 229 64 24
2018-06-30 226 56 15
2018-03-31 212 55 2
2017-12-31 205 54 -5
2017-09-30 196 63 -12
2017-06-30 186 65 -4
2017-03-31 174 63 -5
2016-12-31 143 44 -12
2016-09-30 126 22 -34
2016-06-30 114 21 -42
2016-03-31 123 20 -38
2015-12-31 134 31 -33

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sierra Metals's earnings are expected to grow significantly at over 20% yearly.
  • Sierra Metals's revenue is expected to grow by 14.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:SMT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Sierra Metals Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SMT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 0.43 0.43 0.43 1.00
2021-12-31 0.36 0.36 0.36 1.00
2020-12-31 0.28 0.28 0.28 1.00
2019-12-31 0.27 0.30 0.21 3.00
2018-12-31 0.16 0.16 0.15 4.00
TSX:SMT Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 0.14
2018-06-30 0.09
2018-03-31 0.01
2017-12-31 -0.03
2017-09-30 -0.07
2017-06-30 -0.02
2017-03-31 -0.03
2016-12-31 -0.08
2016-09-30 -0.21
2016-06-30 -0.26
2016-03-31 -0.23
2015-12-31 -0.21

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Sierra Metals will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Sierra Metals's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sierra Metals has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Sierra Metals performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sierra Metals's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sierra Metals has delivered over 20% year on year earnings growth in the past 5 years.
  • Sierra Metals has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Sierra Metals has become profitable in the last year making it difficult to compare the CA Metals and Mining industry average.
Earnings and Revenue History
Sierra Metals's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sierra Metals Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SMT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 228.52 23.59 29.55
2018-06-30 226.43 15.14 28.79
2018-03-31 212.28 1.50 28.82
2017-12-31 205.12 -4.65 27.88
2017-09-30 195.77 -11.84 25.33
2017-06-30 185.67 -3.95 25.29
2017-03-31 173.96 -4.59 24.26
2016-12-31 143.18 -12.27 22.94
2016-09-30 126.38 -34.27 21.67
2016-06-30 114.04 -42.40 21.09
2016-03-31 123.05 -37.75 23.08
2015-12-31 134.05 -33.30 23.22
2015-09-30 149.89 -2.85 26.58
2015-06-30 165.97 5.37 28.08
2015-03-31 165.68 6.55 26.93
2014-12-31 172.61 9.30 27.10
2014-09-30 168.17 -8.40 25.21
2014-06-30 153.02 -16.45 22.42
2014-03-31 143.65 -28.65 22.19
2013-12-31 143.54 -33.97 23.09
2013-09-30 154.36 -29.25 25.59
2013-06-30 171.93 -31.44 26.05
2013-03-31 175.85 -25.22 25.50
2012-12-31 179.80 -26.26 25.94
2012-09-30 174.80 -19.39 24.62
2012-06-30 165.90 -9.59 24.92
2012-03-31 143.20 -17.99 24.60

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Sierra Metals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Sierra Metals used its assets less efficiently than the CA Metals and Mining industry average last year based on Return on Assets.
  • Sierra Metals has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Sierra Metals's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sierra Metals has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Sierra Metals's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sierra Metals's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sierra Metals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sierra Metals's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Sierra Metals's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sierra Metals Company Filings, last reported 5 months ago.

TSX:SMT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 206.52 59.75 29.07
2018-06-30 202.99 63.34 21.80
2018-03-31 190.62 66.83 25.51
2017-12-31 180.68 64.86 23.88
2017-09-30 178.18 68.54 28.61
2017-06-30 186.03 65.76 31.12
2017-03-31 189.09 75.04 37.96
2016-12-31 185.96 78.68 42.15
2016-09-30 191.21 82.66 27.17
2016-06-30 189.25 84.98 20.56
2016-03-31 192.39 82.69 19.15
2015-12-31 197.57 76.09 25.10
2015-09-30 225.86 77.06 32.12
2015-06-30 234.35 79.48 29.83
2015-03-31 232.22 84.66 38.18
2014-12-31 234.49 81.88 41.27
2014-09-30 232.88 86.10 46.73
2014-06-30 232.29 90.17 42.10
2014-03-31 229.12 89.90 40.03
2013-12-31 230.74 93.52 44.93
2013-09-30 249.27 78.32 33.49
2013-06-30 256.40 77.91 40.94
2013-03-31 271.97 90.03 67.38
2012-12-31 284.95 89.28 80.24
2012-09-30 298.36 99.94 99.42
2012-06-30 304.98 105.37 97.41
2012-03-31 269.76 110.04 63.43
  • Sierra Metals's level of debt (28.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (31.5% vs 28.9% today).
  • Debt is well covered by operating cash flow (107.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 25.4x coverage).
X
Financial health checks
We assess Sierra Metals's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sierra Metals has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Sierra Metals dividends.
If you bought CA$2,000 of Sierra Metals shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Sierra Metals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Sierra Metals's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:SMT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Canada Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 28 Stocks 1.2%
Canada Market Average Dividend Yield Market Cap Weighted Average of 330 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:SMT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31
2019-12-31
2018-12-31
TSX:SMT Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2017-11-09 0.000 0.000
2017-08-14 0.000 0.000
2017-05-11 0.000 0.000
2017-03-30 0.000 0.000
2016-03-30 0.015 1.074
2016-03-29 0.000 0.000
2015-04-01 0.014 1.634
2015-03-26 0.000 0.000
2014-03-26 0.016 1.222
2014-01-09 0.057 3.266
2013-10-01 0.059 3.066
2013-06-21 0.060 3.064
2013-02-12 0.061 2.726

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Sierra Metals has not reported any payouts.
  • Unable to verify if Sierra Metals's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Sierra Metals's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Sierra Metals has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Sierra Metals's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sierra Metals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sierra Metals has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Igor Gonzáles Galindo
COMPENSATION $1,515,077
AGE 63
TENURE AS CEO 1.8 years
CEO Bio

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 Buenaventura S.A.A. since November 1, 2014 until April 30, 2017. Mr. Galindo has more than 30 years of experience in the mining industry. He served as the President of South America Region at Barrick Gold Corporation since September 2004 and served as its Vice President of Peru from January 1, 2004 to September 2005. Mr. Galindo served as General Director of operations at Barrick Gold Corporation. He served as the Chief Operating Officer and Executive Vice President of Barrick Gold Corporation since May 2, 2012. He served as a Vice President and General Manager of Pierina Mine. He served as General Manager of Minera Barrick Misquichilca S.A. until 2006. He was with Barrick Gold Corporation from 1998 to 2013. From 1980 to 1996, he served in various roles with Southern Peru Copper Corporation. Mr. Galindo serves as the Chairman of the South American Region at Barrick Gold Corporation. He has been a Director of Sierra Metals Inc. since September 19, 2013. He served as an Independent Director at Sociedad Minera Corona, SA since September 19, 2013 until 2018. He has been an Independent Director of HudBay Minerals, Inc. since July 31, 2013. He has been Director of Minera Barrick Misquichilca S.A. since 2003. He served as a Director of Compañía de Minas Buenaventura S.A.A. since February 27, 2014 until April 30, 2017. He holds Bachelor of Science degree in Chemical Engineering from the University of San Antonio Abad in Cusco, Peru, and he was a Fulbright Scholar at the New Mexico Institute of Mining and Technology, where he earned a Master of Science degree in Extractive Metallurgy.

CEO Compensation
  • Igor's compensation has increased in line with Sierra Metals recently becoming profitable.
  • Igor's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Sierra Metals management team in years:

3.7
Average Tenure
61
Average Age
  • The tenure for the Sierra Metals management team is about average.
Management Team

Igor Gonzáles Galindo

TITLE
President
COMPENSATION
$2M
AGE
63
TENURE
1.8 yrs

Gord Babcock

TITLE
Chief Operating Officer
COMPENSATION
$945K
AGE
61
TENURE
3.7 yrs

Alonso Lujan

TITLE
VP of Exploration & GM of Dia Bras Mexicana
COMPENSATION
$350K
TENURE
2.5 yrs

Ed Guimaraes

TITLE
Chief Financial Officer
COMPENSATION
$1M
TENURE
4.3 yrs

Mike McAllister

TITLE
Vice President of Corporate Development
AGE
48
TENURE
2.7 yrs

Jill Neff

TITLE
Corporate Secretary
TENURE
5.9 yrs

Andrew Dunlop

TITLE
Corporate Controller
TENURE
4.2 yrs
Board of Directors Tenure

Average tenure and age of the Sierra Metals board of directors in years:

5.5
Average Tenure
58
Average Age
  • The tenure for the Sierra Metals board of directors is about average.
Board of Directors

Jesus Arias

TITLE
Chairman of the Board
COMPENSATION
$147K
AGE
51
TENURE
6 yrs

Igor Gonzáles Galindo

TITLE
President
COMPENSATION
$2M
AGE
63
TENURE
5.5 yrs

Doug Cater

TITLE
Director
COMPENSATION
$147K
AGE
60
TENURE
9.8 yrs

Philip Renaud

TITLE
Director
COMPENSATION
$204K
TENURE
15.4 yrs

Steven Dean

TITLE
Director
COMPENSATION
$204K
AGE
58
TENURE
7.4 yrs

Dionisio Romero Paoletti

TITLE
Director
COMPENSATION
$147K
AGE
53
TENURE
3.3 yrs

Jose Vizquerra-Benavides

TITLE
Director
COMPENSATION
$22K
AGE
37
TENURE
1.3 yrs

Alberto Beeck

TITLE
Adviser to the Board
AGE
62
TENURE
1.3 yrs

Alejandro Perellon

TITLE
Observer to the Board
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Sierra Metals insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
16. Jan 19 Buy Arias Resource Capital Management LP Company 11. Jan 19 11. Jan 19 40,000 CA$2.60 CA$104,000
15. Jan 19 Buy Michael McAllister Individual 15. Jan 19 15. Jan 19 500 CA$2.56 CA$1,280
09. Jan 19 Buy Arias Resource Capital Management LP Company 04. Jan 19 04. Jan 19 26,100 CA$2.55 CA$66,477
07. Jan 19 Buy Arias Resource Capital Management LP Company 31. Dec 18 03. Jan 19 278,700 CA$2.46 CA$675,495
02. Jan 19 Buy Arias Resource Capital Management LP Company 28. Dec 18 28. Dec 18 95,400 CA$2.35 CA$223,999
01. Jan 19 Buy Arias Resource Capital Management LP Company 26. Dec 18 27. Dec 18 87,085 CA$2.42 CA$209,218
22. Dec 18 Buy Igor Gonzáles Galindo Individual 04. Dec 18 04. Dec 18 1,200 CA$3.03 CA$3,642
22. Dec 18 Buy Jill Neff Individual 20. Dec 18 20. Dec 18 3,500 CA$2.27 CA$7,945
20. Dec 18 Sell Philip Renaud Individual 19. Dec 18 19. Dec 18 -300,000 CA$2.62 CA$-785,010
19. Dec 18 Sell Philip Renaud Individual 17. Dec 18 17. Dec 18 -10,800 CA$2.90 CA$-31,320
13. Apr 18 Buy Michael McAllister Individual 13. Apr 18 13. Apr 18 500 CA$3.24 CA$1,620
X
Management checks
We assess Sierra Metals's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sierra Metals has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Sierra Metals Inc.'s (TSE:SMT) Balance Sheet Strong Enough To Weather A Storm?

(TSE:SMT) with its market cap of CA$359m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is. … We'll look at some basic checks that can form a snapshot the company’s financial strength.

Simply Wall St -

Can We See Significant Insider Ownership On The Sierra Metals Inc. (TSE:SMT) Share Register?

If you want to know who really controls Sierra Metals Inc. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Sierra Metals is a smaller company with a market capitalization of CA$368m, so it may still be flying under the radar of many institutional investors.

Simply Wall St -

Here's What Sierra Metals Inc.'s (TSE:SMT) ROCE Can Tell Us

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Is Sierra Metals Inc. (TSE:SMT) A High Quality Stock To Own?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each CA$1 of shareholders' equity it has, the company made CA$0.15 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What You Must Know About Sierra Metals Inc's (TSE:SMT) Financial Strength

While small-cap stocks, such as Sierra Metals Inc (TSE:SMT) with its market cap of CA$503m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.

Simply Wall St -

Do Institutions Own Sierra Metals Inc (TSE:SMT) Shares?

A look at the shareholders of Sierra Metals Inc (TSE:SMT) can tell us which group is most powerful. … Sierra Metals is not a large company by global standards. … Check out our latest analysis for Sierra Metals

Simply Wall St -

Does Sierra Metals Inc (TSE:SMT) Create Value For Shareholders?

We'll use ROE to examine Sierra Metals Inc (TSE:SMT), by way of a worked example. … That means that for every CA$1 worth of shareholders' equity, it generated CA$0.11 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is There An Opportunity With Sierra Metals Inc's (TSE:SMT) 27.45% Undervaluation?

In this article I am going to calculate the intrinsic value of Sierra Metals Inc (TSE:SMT). … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Should You Be Holding Sierra Metals Inc (TSE:SMT) Right Now?

The other type of risk, which cannot be diversified away, is market risk. … Not every stock is exposed to the same level of market risk. … A widely-used metric to measure a stock's market risk is beta, and the broad market index represents a beta value of one.

Simply Wall St -

Is Sierra Metals Inc's (TSE:SMT) Balance Sheet Strong Enough To Weather A Storm?

However, an important fact which most ignore is: how financially healthy is the business? … So, understanding the company's financial health becomes. … Here are few basic financial health checks you should consider before taking the plunge.

Simply Wall St -

Company Info

Description

Sierra Metals Inc. engages in 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 deposits. The company holds 81.84% interest in the polymetallic Yauricocha Mine located in the Yauyos province in Peru. It also holds 100% interest in the Bolivar mine that comprises 14 mineral concessions covering an area of approximately 6,800 hectares located in Chihuahua, Mexico; and Cusi Mines that include 75 mineral concessions covering an area of 11,815.3 hectares located in the Chihuahua, Mexico. The company was formerly known as Dia Bras Exploration Inc. and changed its name to Sierra Metals Inc. in December 2012. Sierra Metals Inc. was incorporated in 1996 and is headquartered in Toronto, Canada.

Details
Name: Sierra Metals Inc.
SMT
Exchange: TSX
Founded: 1996
CA$349,648,657
163,387,223
Website: http://www.sierrametals.com
Address: Sierra Metals Inc.
TD Tower South,
Suite 2100,
Toronto,
Ontario, M5K 1H1,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX SMT Common Shares The Toronto Stock Exchange CA CAD 04. Oct 1996
AMEX SMTS Common Shares NYSE MKT LLC US USD 04. Oct 1996
DB DFXN Common Shares Deutsche Boerse AG DE EUR 04. Oct 1996
BVL SMT Common Shares Bolsa de Valores de Lima PE USD 04. Oct 1996
Number of employees
Current staff
Staff numbers
1,362
Sierra Metals employees.
Industry
Diversified Metals and Mining
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 23:35
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/02/26
Last earnings filing: 2018/11/12
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.