TSX:SSL

Stock Analysis Report

Executive Summary

Sandstorm Gold Ltd. operates as a gold royalty company.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet.


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


Market Performance


7 Day Return

-1.0%

SSL

-2.7%

CA Metals and Mining

-0.1%

CA Market


1 Year Return

43.4%

SSL

11.4%

CA Metals and Mining

0.9%

CA Market

Return vs Industry: SSL exceeded the Canadian Metals and Mining industry which returned 11.4% over the past year.

Return vs Market: SSL exceeded the Canadian Market which returned 0.9% over the past year.


Shareholder returns

SSLIndustryMarket
7 Day-1.0%-2.7%-0.1%
30 Day3.7%-2.9%-2.1%
90 Day3.2%-0.2%-1.6%
1 Year43.4%43.4%12.3%11.4%4.4%0.9%
3 Year26.4%26.4%-7.1%-8.8%15.5%5.2%
5 Year62.3%62.3%4.6%0.7%25.7%7.5%

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?

35.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SSL (CA$7.66) is trading below our estimate of fair value (CA$11.89)

Significantly Undervalued: 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 (107x) compared to the Metals and Mining industry average (13.5x).

PE vs Market: SSL is poor value based on its PE Ratio (107x) compared to the Canadian market (13.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: SSL is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: SSL is overvalued based on its PB Ratio (1.8x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

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

52.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SSL's forecast earnings growth (52.6% per year) is above the savings rate (1.9%).

Earnings vs Market: SSL's earnings (52.6% per year) are forecast to grow faster than the Canadian market (13.2% per year).

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

Revenue vs Market: SSL's revenue (12.2% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: SSL's revenue (12.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Sandstorm Gold performed over the past 5 years?

45.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SSL has become profitable over the past 5 years, growing earnings by 45.9% per year.

Accelerating Growth: SSL's earnings growth over the past year (50.1%) exceeds its 5-year average (45.9% per year).

Earnings vs Industry: SSL earnings growth over the past year (50.1%) exceeded the Metals and Mining industry -13.7%.


Return on Equity

High ROE: SSL's Return on Equity (1.8%) is considered low.


Return on Assets

ROA vs Industry: SSL's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: SSL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Sandstorm Gold's financial position?


Financial Position Analysis

Short Term Liabilities: SSL's short term assets ($27.1M) exceeds its short term liabilities ($4.4M)

Long Term Liabilities: SSL's short term assets (27.1M) do not cover its long term liabilities (40.7M)


Debt to Equity History and Analysis

Debt Level: SSL's debt to equity ratio (6.7%) is considered satisfactory

Reducing Debt: SSL's debt to equity ratio has increased from 0.5% to 6.7% over the past 5 years.

Debt Coverage: SSL's debt is well covered by operating cash flow (128.4%).

Interest Coverage: SSL's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: SSL's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate SSL'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 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

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

5.1yrs

Average management tenure


CEO

Nolan Watson (39yo)

11.1yrs

Tenure

US$1,828,512

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 ($USD1.83M) is about average for companies of similar size in the Canadian market ($USD1.55M).

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


Management Age and Tenure

5.1yrs

Average Tenure

43.5yo

Average Age

Experienced Management: SSL's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

10.3yrs

Average Tenure

61yo

Average Age

Experienced Board: SSL's board of directors are seasoned and experienced ( 10.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$33,07721 Aug 19
Andrew Swarthout
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$8.27
SellUS$5,25010 Jun 19
David De Witt
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares700
Max PriceUS$7.50
BuyUS$4,93510 Jun 19
David De Witt
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares700
Max PriceUS$7.05
SellUS$818,65006 Jun 19
Erfan Kazemi
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares110,000
Max PriceUS$7.51
BuyUS$396,00006 Jun 19
Erfan Kazemi
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares110,000
Max PriceUS$3.60
SellUS$408,42304 Jun 19
John Philip Budreski
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares55,000
Max PriceUS$7.43
SellUS$2,800,55417 May 19
Nolan Watson
EntityIndividual
Role
Chief Executive Officer
Co-founder
Shares400,000
Max PriceUS$7.02
BuyUS$33,69512 Apr 19
David De Witt
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares11,500
Max PriceUS$2.93
SellUS$87,48912 Apr 19
David De Witt
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares11,500
Max PriceUS$7.63
SellUS$702,56310 Apr 19
David De Witt
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares92,500
Max PriceUS$7.62
SellUS$2,251,30506 Mar 19
Erfan Kazemi
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares315,000
Max PriceUS$7.15

Ownership Breakdown


Management Team

  • Keith Laskowski (62yo)

    Vice President of Technical Services

    • Tenure: 0yrs
  • Nolan Watson (39yo)

    Co-founder

    • Tenure: 11.1yrs
    • Compensation: US$1.83m
  • David Awram (46yo)

    Co-founder

    • Tenure: 12.6yrs
    • Compensation: US$1.32m
  • Ron Ho (41yo)

    Senior Vice President of Finance

    • Tenure: 0.8yrs
    • Compensation: US$580.98k
  • Christine Gregory (65yo)

    Corporate Secretary

    • Tenure: 0yrs
  • Erfan Kazemi

    Chief Financial Officer

    • Tenure: 8.2yrs
    • Compensation: US$961.11k
  • Tom Bruington

    Executive Vice President of Project Evaluation

    • Tenure: 6.8yrs
    • Compensation: US$990.87k
  • Adam Spencer (34yo)

    Senior Vice President of Corporate Development

    • Tenure: 3.5yrs
    • Compensation: US$585.87k
  • George Darling

    Senior Vice President of Engineering

    • Tenure: 1.6yrs
    • Compensation: US$656.81k

Board Members

  • Andrew Swarthout (67yo)

    Independent Director

    • Tenure: 10.6yrs
    • Compensation: US$156.22k
  • Dave De Witt (67yo)

    Non-Executive Chairman

    • Tenure: 3.6yrs
    • Compensation: US$156.22k
  • John Philip Budreski (61yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$156.22k
  • Mary Little (65yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$156.22k
  • Nolan Watson (39yo)

    Co-founder

    • Tenure: 11.1yrs
    • Compensation: US$1.83m
  • David Awram (46yo)

    Co-founder

    • Tenure: 12.6yrs
    • Compensation: US$1.32m
  • Vera Kobalia (38yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$243.15k

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$1.356b
  • Shares outstanding: 177.07m
  • 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
SANDAMEX (NYSE MKT LLC)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 Analysis2019/10/14 23:56
End of Day Share Price2019/10/11 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.