NGM:SOSI

Stock Analysis Report

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Executive Summary

Sotkamo Silver AB explores for and develops mineral deposits in the Nordic region.


Snowflake Analysis

Fair value with moderate growth potential.

Share Price & News

How has Sotkamo Silver's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.7%

SOSI

6.3%

SE Metals and Mining

3.9%

SE Market


1 Year Return

-46.0%

SOSI

-6.0%

SE Metals and Mining

11.2%

SE Market

Return vs Industry: SOSI underperformed the Swedish Metals and Mining industry which returned -5.7% over the past year.

Return vs Market: SOSI underperformed the Swedish Market which returned 10.9% over the past year.


Shareholder returns

SOSIIndustryMarket
7 Day-2.7%6.3%3.9%
30 Day13.7%15.5%13.1%
90 Day-30.1%3.9%4.0%
1 Year-39.2%-46.0%-3.9%-6.0%12.8%11.2%
3 Year-42.0%-48.4%-7.9%-15.6%17.5%1.6%
5 Year-17.6%-58.5%1.4%-11.4%36.5%9.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sotkamo Silver 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: SOSI (SEK2.16) is trading below our estimate of fair value (SEK5.33)

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


Price To Earnings Ratio

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

PE vs Market: SOSI is unprofitable, so we can't compare its PE Ratio to the Swedish market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SOSI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SOSI is good value based on its PB Ratio (1.3x) compared to the SE Metals and Mining industry average (1.4x).


Next Steps

Future Growth

How is Sotkamo Silver forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

87.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOSI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).

Earnings vs Market: SOSI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SOSI's is expected to become profitable in the next 3 years.

Revenue vs Market: SOSI's revenue (4.9% per year) is forecast to grow slower than the Swedish market (5.9% per year).

High Growth Revenue: SOSI's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOSI's Return on Equity is forecast to be low in 3 years time (14.3%).


Next Steps

Past Performance

How has Sotkamo Silver performed over the past 5 years?

-56.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOSI is currently unprofitable.

Growing Profit Margin: SOSI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SOSI is unprofitable, and losses have increased over the past 5 years at a rate of -56.9% per year.

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

Earnings vs Industry: SOSI is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-25%).


Return on Equity

High ROE: SOSI has a negative Return on Equity (-36.41%), as it is currently unprofitable.


Next Steps

Financial Health

How is Sotkamo Silver's financial position?


Financial Position Analysis

Short Term Liabilities: SOSI's short term assets (SEK42.3M) do not cover its short term liabilities (SEK128.1M).

Long Term Liabilities: SOSI's short term assets (SEK42.3M) do not cover its long term liabilities (SEK361.7M).


Debt to Equity History and Analysis

Debt Level: SOSI's debt to equity ratio (115.9%) is considered high.

Reducing Debt: SOSI's debt to equity ratio has increased from 4.6% to 115.9% over the past 5 years.


Balance Sheet


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: SOSI has sufficient cash runway for 2 months based on last reported free cash flow, but has since raised additional capital.

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


Next Steps

Dividend

What is Sotkamo Silver's current dividend yield, its reliability and sustainability?

0.58%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if SOSI'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 SOSI's dividend in 3 years as they are not forecast to pay a notable one for the Swedish market.


Next Steps

Management

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

0.5yrs

Average management tenure


CEO

Paul Johnsson (48yo)

0.50

Tenure

kr1,476,000

Compensation

Mr. Paul Johnsson is the CEO of Sotkamo Silver Aktiebolag since December 17, 2019 and served as its Chief Financial Officer since May 01, 2017 until December 17, 2019. Mr. Johnsson was Controller at Endomi ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD159.28K) is about average for companies of similar size in the Swedish market ($USD222.28K).

Compensation vs Earnings: Insufficient data to compare Paul's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Johnsson
Group Chief Executive Officer0.50yrkr1.48mno data
Mikko Sopanen
Chief Financial Officer0.50yrno datano data
Arttu Ohtonen
Deputy Managing Director0.50yrno datano data
Erkki Kuronen
Deputy Chief Executive Officer0.50yrno datano data

0.5yrs

Average Tenure

45yo

Average Age

Experienced Management: SOSI's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Eeva-Liisa Virkkunen
Independent Chairman of the Board0.17yrkr220.00kno data
Ilkka Tuokko
Director3.25yrskr174.00kno data
Jarmo Vesanto
Independent Director7.42yrskr174.00kno data
Maria Neovius
Independent Director1.17yrskr174.00kno data
Karri Alameri
Director0.17yrno datano data
Sixten Sunabacka
Director0.17yrno datano data

0.7yrs

Average Tenure

62yo

Average Age

Experienced Board: SOSI's board of directors are not considered experienced ( 0.7 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 33.3%.


Top Shareholders

Company Information

Sotkamo Silver AB's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sotkamo Silver AB
  • Ticker: SOSI
  • Exchange: NGM
  • Founded:
  • Industry: Gold
  • Sector: Materials
  • Market Cap: kr388.752m
  • Shares outstanding: 179.98m
  • Website: https://ww.silver.fi/sivu/en

Number of Employees


Location

  • Sotkamo Silver AB
  • Nybrogatan 34
  • Box 5216
  • Stockholm
  • Stockholm County
  • 102 45
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOSINGM (Nordic Growth Market)YesCommon SharesSESEKJan 2007
0N0XLSE (London Stock Exchange)YesCommon SharesGBSEKJan 2007
SOSI1HLSE (OMX Nordic Exchange Helsinki)YesCommon SharesFIEURJan 2007
VSODB (Deutsche Boerse AG)YesCommon SharesDEEURJan 2007
SOSI1N0120HLSE (OMX Nordic Exchange Helsinki)NPV BTA 072020FIEURMay 2020

Biography

Sotkamo Silver AB explores for and develops mineral deposits in the Nordic region. The company primarily explores for silver, gold, tungsten, and zinc deposits. Its primary project is the Silver Mine project totaling 530 hectares of mining concession and environmental permit located in the municipality of Sotkamo in eastern Finland. Sotkamo Silver AB is headquartered in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 07:50
End of Day Share Price2020/06/03 00:00
Earnings2020/03/31
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.