Sandfire Resources Limited

OTCPK:SFRR.F Stock Report

Market Cap: US$3.1b

Sandfire Resources Valuation

Is SFRR.F undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SFRR.F when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SFRR.F ($6.3) is trading below our estimate of fair value ($9.44)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SFRR.F?

Key metric: As SFRR.F is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SFRR.F. This is calculated by dividing SFRR.F's market cap by their current revenue.
What is SFRR.F's PS Ratio?
PS Ratio3.2x
SalesUS$935.28m
Market CapUS$3.07b

Price to Sales Ratio vs Peers

How does SFRR.F's PS Ratio compare to its peers?

The above table shows the PS ratio for SFRR.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.5x
MTAL Metals Acquisition
3.2x12.2%US$1.1b
FCX Freeport-McMoRan
2.5x5.5%US$62.8b
SCCO Southern Copper
7.4x4.9%US$78.8b
AMR Alpha Metallurgical Resources
1x-5.7%US$3.2b
SFRR.F Sandfire Resources
3.2x8.6%US$4.7b

Price-To-Sales vs Peers: SFRR.F is good value based on its Price-To-Sales Ratio (3.2x) compared to the peer average (3.5x).

Price to Sales Ratio vs Industry

How does SFRR.F's PS Ratio compare vs other companies in the US Metals and Mining Industry?

24 CompaniesPrice / SalesEstimated GrowthMarket Cap
TX Ternium
0.4x2.7%US$6.56b
CLF Cleveland-Cliffs
0.3x4.3%US$6.15b
ARNC Arconic
0.4x5.8%US$3.01b
CSTM Constellium
0.3x9.3%US$1.80b
SFRR.F 3.2xIndustry Avg. 1.3xNo. of Companies24PS01.63.24.86.48+
24 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SFRR.F is expensive based on its Price-To-Sales Ratio (3.2x) compared to the US Metals and Mining industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is SFRR.F's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SFRR.F PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.2x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate SFRR.F's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SFRR.F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$6.30
US$6.77
+7.5%
9.5%US$7.82US$5.21n/a14
Nov ’25US$6.76
US$6.79
+0.5%
9.6%US$7.89US$5.26n/a14
Oct ’25US$7.20
US$6.58
-8.6%
14.9%US$7.92US$3.79n/a16
Sep ’25US$5.89
US$6.44
+9.3%
14.5%US$7.78US$3.73n/a16
Aug ’25n/a
US$6.16
0%
14.8%US$7.48US$3.58n/a16
Jul ’25US$5.65
US$6.29
+11.3%
16.4%US$7.65US$3.66n/a16
Jun ’25US$6.34
US$6.22
-1.9%
17.9%US$7.65US$3.67n/a16
May ’25US$5.90
US$5.86
-0.6%
16.9%US$7.15US$3.58n/a16
Apr ’25US$5.95
US$5.08
-14.7%
12.9%US$6.53US$3.60n/a16
Mar ’25US$4.58
US$4.86
+6.1%
10.7%US$5.56US$3.61n/a16
Feb ’25US$4.90
US$4.92
+0.4%
8.9%US$5.58US$4.16n/a15
Jan ’25US$4.67
US$4.56
-2.3%
10.7%US$5.64US$3.60n/a15
Dec ’24n/a
US$4.50
0%
11.0%US$5.59US$3.57n/a15
Nov ’24n/a
US$4.32
0%
11.5%US$5.36US$3.43US$6.7615
Oct ’24n/a
US$4.34
0%
9.6%US$4.98US$3.47US$7.2015
Sep ’24US$4.50
US$4.31
-4.1%
9.1%US$5.00US$3.48US$5.8915
Aug ’24US$4.25
US$4.46
+5.0%
8.8%US$5.09US$3.59n/a15
Jul ’24n/a
US$4.30
0%
12.5%US$4.95US$3.04US$5.6515
Jun ’24n/a
US$4.29
0%
13.9%US$5.23US$3.06US$6.3415
May ’24US$4.38
US$4.37
-0.2%
13.7%US$5.38US$3.11US$5.9016
Apr ’24US$4.31
US$4.09
-5.2%
15.1%US$5.01US$2.67US$5.9516
Mar ’24US$3.97
US$4.02
+1.2%
15.8%US$5.07US$2.70US$4.5814
Feb ’24US$4.40
US$4.31
-2.0%
16.0%US$5.47US$3.06US$4.9015
Jan ’24US$3.52
US$3.64
+3.3%
20.9%US$5.15US$2.19US$4.6715
Dec ’23US$3.77
US$3.47
-8.0%
21.6%US$5.25US$2.23n/a14
Nov ’23US$2.21
US$3.06
+38.3%
21.8%US$4.86US$2.02n/a15

Analyst Forecast: Target price is less than 20% higher than the current share price.

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