AMEX:SMTS

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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.


Snowflake Analysis

Mediocre balance sheet with questionable track record.

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: SMTS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.6%

SMTS

2.4%

US Metals and Mining

1.5%

US Market


1 Year Return

-3.1%

SMTS

7.3%

US Metals and Mining

6.9%

US Market

Return vs Industry: SMTS underperformed the US Metals and Mining industry which returned 3.9% over the past year.

Return vs Market: SMTS underperformed the US Market which returned 5.3% over the past year.


Shareholder returns

SMTSIndustryMarket
7 Day1.6%2.4%1.5%
30 Day59.8%9.5%5.9%
90 Day65.0%26.3%17.9%
1 Year-3.1%-3.1%9.9%7.3%9.2%6.9%
3 Year-52.5%-52.5%9.6%2.6%36.4%27.5%
5 Year21.6%21.6%60.0%46.3%64.9%47.0%

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

No news available

Valuation

Is Sierra Metals undervalued compared to its fair value and its price relative to the market?

47.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SMTS's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SMTS's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SMTS is poor value based on its PE Ratio (46.6x) compared to the US Metals and Mining industry average (8.6x).

PE vs Market: SMTS is poor value based on its PE Ratio (46.6x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SMTS is good value based on its PB Ratio (1.1x) compared to the US Metals and Mining industry average (1.3x).


Next Steps

Future Growth

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

28.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SMTS's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if SMTS's earnings are forecast to grow faster than the US market

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

Revenue vs Market: SMTS's revenue (28.5% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: SMTS's revenue (28.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SMTS'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?

42.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SMTS has high quality earnings.

Growing Profit Margin: SMTS's current net profit margins (1.8%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: SMTS has become profitable over the past 5 years, growing earnings by 42.3% per year.

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

Earnings vs Industry: SMTS had negative earnings growth (-48.2%) over the past year, making it difficult to compare to the Metals and Mining industry average (-11.3%).


Return on Equity

High ROE: SMTS's Return on Equity (3.9%) is considered low.


Next Steps

Financial Health

How is Sierra Metals's financial position?


Financial Position Analysis

Short Term Liabilities: SMTS's short term assets ($91.9M) exceed its short term liabilities ($42.7M).

Long Term Liabilities: SMTS's short term assets ($91.9M) do not cover its long term liabilities ($146.7M).


Debt to Equity History and Analysis

Debt Level: SMTS's debt to equity ratio (47.3%) is considered high.

Reducing Debt: SMTS's debt to equity ratio has increased from 36.4% to 47.3% over the past 5 years.

Debt Coverage: SMTS's debt is well covered by operating cash flow (44.8%).

Interest Coverage: SMTS's interest payments on its debt are well covered by EBIT (5.2x 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 SMTS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

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

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


Current Payout to Shareholders

Dividend Coverage: SMTS is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SMTS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Luis Marchese Montenegro (53yo)

0.083

Tenure

Mr. Luis Carlos Marchese Montenegro has been President & Chief Executive Officer at Sierra Metals Inc. since June 1, 2020. He serves as Director at Sierra Metals Inc. since May 19, 2020. Mr. Marchese is a  ...


Leadership Team

NamePositionTenureCompensationOwnership
Edmundo Guimaraes
Chief Financial Officer5.67yrsUS$526.62k0.31% $631.4k
Michael McAllister
Vice President of Investor Relations1.17yrsUS$290.28k0.048% $97.8k
Alonso Lujan
VP of Exploration & Country Manager of Mexico3.83yrsUS$411.79k0.020% $41.1k
Luis Marchese Montenegro
President0.083yrno data0.074% $150.0k
James León
GM of Yauricocha & Country Manager of Peru0.42yrno datano data
Jill Neff
Corporate Secretary7.25yrsno data0.028% $57.6k
Rajesh Vyas
Corporate Controller0.58yrno data0.0074% $15.0k

1.2yrs

Average Tenure

Experienced Management: SMTS's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Luis Marchese Montenegro
President0.083yrno data0.074% $150.0k
Steven Dean
Independent Director8.75yrsUS$220.49k0.17% $351.5k
Dionisio Romero Paoletti
Independent Director4.67yrsUS$154.88k0.34% $701.7k
Alberto Beeck
Adviser to the Board2.58yrsno datano data
Jesus Alberto Arias
Chairman of the Board7.33yrsUS$154.88kno data
Douglas Cater
Independent Director11.08yrsUS$154.88k0.22% $445.0k
Koko Yamamoto
Independent Director1yrUS$64.81k0.0034% $6.9k
Jose Vizquerra-Benavides
Independent Director2.67yrsUS$154.88k0.016% $32.6k
Ricardo Arrarte Grau
Director1.25yrsUS$115.30kno data

2.7yrs

Average Tenure

53yo

Average Age

Experienced Board: SMTS's board of directors are not considered experienced ( 2.7 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: SMTS 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: SMTS
  • Exchange: AMEX
  • Founded: 1996
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$275.150m
  • Listing Market Cap: CA$203.488m
  • 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 deposits. The company holds 81.84% interest in the polymetallic Yauricocha Mine, which covers 18,778 hectares located in the Yauyos province in Peru. It also holds 100% interest in the Bolivar mine that covers an area of 15,217 hectares located in Chihuahua, Mexico; and Cusi Mines that include 73 mineral concessions covering an area of 11,977 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/16 00:34
End of Day Share Price2020/07/15 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.