TSX:SSL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Sandstorm Gold Ltd. operates as a gold royalty company.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Sandstorm Gold's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SSL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.9%

SSL

0.06%

CA Metals and Mining

2.5%

CA Market


1 Year Return

43.0%

SSL

50.0%

CA Metals and Mining

-3.5%

CA Market

Return vs Industry: SSL underperformed the Canadian Metals and Mining industry which returned 49.7% over the past year.

Return vs Market: SSL exceeded the Canadian Market which returned -3.9% over the past year.


Shareholder returns

SSLIndustryMarket
7 Day-3.9%0.06%2.5%
30 Day-6.1%8.7%6.2%
90 Day14.5%25.2%11.7%
1 Year43.0%43.0%51.1%50.0%-0.1%-3.5%
3 Year125.9%125.9%62.7%59.5%12.3%1.6%
5 Year237.0%237.0%152.8%145.4%34.2%13.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

13.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SSL (CA$12.4) is trading below our estimate of fair value (CA$14.39)

Significantly Below Fair Value: SSL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SSL is poor value based on its PE Ratio (201.6x) compared to the CA Metals and Mining industry average (25x).

PE vs Market: SSL is poor value based on its PE Ratio (201.6x) compared to the Canadian market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: SSL is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: SSL's PB Ratio (3x) is in line with the CA Metals and Mining industry average.


Next Steps

Future Growth

How is Sandstorm Gold forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

44.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SSL's forecast earnings growth (44.7% per year) is above the savings rate (1.7%).

Earnings vs Market: SSL's earnings (44.7% per year) are forecast to grow faster than the Canadian market (26.6% per year).

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

Revenue vs Market: SSL's revenue (13% per year) is forecast to grow faster than the Canadian market (6% per year).

High Growth Revenue: SSL's revenue (13% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SSL's Return on Equity is forecast to be low in 3 years time (5.3%).


Next Steps

Past Performance

How has Sandstorm Gold performed over the past 5 years?

47.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SSL has high quality earnings.

Growing Profit Margin: SSL's current net profit margins (9.2%) are lower than last year (13.2%).


Past Earnings Growth Analysis

Earnings Trend: SSL has become profitable over the past 5 years, growing earnings by 47.2% per year.

Accelerating Growth: SSL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SSL had negative earnings growth (-15.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (-15.9%).


Return on Equity

High ROE: SSL's Return on Equity (1.4%) is considered low.


Next Steps

Financial Health

How is Sandstorm Gold's financial position?


Financial Position Analysis

Short Term Liabilities: SSL's short term assets ($55.3M) exceed its short term liabilities ($5.0M).

Long Term Liabilities: SSL's short term assets ($55.3M) exceed its long term liabilities ($3.1M).


Debt to Equity History and Analysis

Debt Level: SSL is debt free.

Reducing Debt: SSL had no debt 5 years ago.

Debt Coverage: SSL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SSL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Sandstorm Gold current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate SSL'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 SSL's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SSL'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?

4.3yrs

Average management tenure


CEO

Nolan Watson (40 yo)

11.92yrs

Tenure

US$2,306,290

Compensation

Mr. Nolan Allan Watson, BComm, CA, CFA, has been the Chief Executive Officer and President of Sandstorm Gold Ltd. (also known as, Sandstorm Resources Ltd.) since September 23, 2008. Mr. Watson is a Co-Foun ...


CEO Compensation Analysis

Compensation vs Market: Nolan's total compensation ($USD2.31M) is about average for companies of similar size in the Canadian market ($USD2.06M).

Compensation vs Earnings: Nolan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nolan Watson
Co-founder11.92yrsUS$2.31m0.37%
$ 8.8m
David Awram
Co-founder13.42yrsUS$1.47m0.28%
$ 6.6m
Erfan Kazemi
Chief Financial Officer9yrsUS$1.07m0.014%
$ 340.6k
Adam Spencer
Senior Vice President of Corporate Development4.33yrsUS$620.23kno data
Thomas Bruington
Executive Vice President of Project Evaluation7.58yrsUS$1.15mno data
Keith Laskowski
Vice President of Technical Services5.58yrsno datano data
Ron Ho
Senior Vice President of Finance1.58yrsUS$580.98kno data
George Darling
Senior Vice President of Engineering2.42yrsUS$656.81kno data
Kim Bergen
Director of Capital Markets0.42yrno datano data
Christine Gregory
Corporate Secretaryno datano datano data
Livia Danila
VP & Corporate Controller0.42yrno datano data

4.3yrs

Average Tenure

44.5yo

Average Age

Experienced Management: SSL's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nolan Watson
Co-founder11.92yrsUS$2.31m0.37%
$ 8.8m
David Awram
Co-founder13.42yrsUS$1.47m0.28%
$ 6.6m
Andrew Swarthout
Independent Director11.42yrsUS$171.11k0.0082%
$ 194.2k
David De Witt
Independent Non-Executive Chairman4.42yrsUS$171.11k0.48%
$ 11.3m
John Philip Budreski
Independent Director11.17yrsUS$171.11k0.015%
$ 363.8k
Mary Little
Independent Director6.17yrsUS$171.11k0.15%
$ 3.5m
Vera Kobalia
Independent Director2.17yrsUS$171.11k0.0033%
$ 78.9k

11.2yrs

Average Tenure

62yo

Average Age

Experienced Board: SSL's board of directors are seasoned and experienced ( 11.2 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.5%.


Top Shareholders

Company Information

Sandstorm Gold Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sandstorm Gold Ltd.
  • Ticker: SSL
  • Exchange: TSX
  • Founded: 2007
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$2.369b
  • Shares outstanding: 191.01m
  • Website: https://www.sandstormgold.com

Number of Employees


Location

  • Sandstorm Gold Ltd.
  • 400 Burrard Street
  • Suite 1400
  • Vancouver
  • British Columbia
  • V6C 3A6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SSLTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2007
AYS1DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2007
SANDNYSE (New York Stock Exchange)YesCommon SharesUSUSDAug 2007
0VGMLSE (London Stock Exchange)YesCommon SharesGBCADAug 2007

Biography

Sandstorm Gold Ltd. operates as a gold royalty company. It focuses on acquiring gold and other metal purchase agreements and royalties from companies that have advanced stage development projects or operat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 23:45
End of Day Share Price2020/08/07 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.