Sherritt International (S) AI Stock Analysis

• Market Cap: C$136.48M
• Dividend Yield: N/A
• Average Volume (3M): 199.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: 13.25%
• EPS Growth: 31.69%
• Country: CA
• Employees: 6,963
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.03
• Shares Outstanding: 496,288,670
• 10 Day Avg. Volume: 305,099
• 30 Day Avg. Volume: 199,879
• PEG Ratio: -0.07
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.40
• P/FCF Ratio: -1.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: C$0.27 ▲(59.41% Upside)

The score is held back primarily by weak financial performance (ongoing losses, margin pressure, and negative operating/free cash flow). Technicals are supportive with strong momentum above major moving averages, but overbought signals raise short-term risk. Valuation offers limited support because profitability is negative and no dividend yield is available.

Positive Factors

Revenue Growth

Sherritt's revenue growth indicates a positive trend in market demand, particularly for nickel and cobalt, supporting long-term business expansion.

Strategic Partnerships

Strategic partnerships and long-term contracts provide stability and access to resources, enhancing Sherritt's competitive position in the market.

Market Position in EV Sector

Sherritt's focus on nickel and cobalt, essential for EV batteries, positions it well to benefit from the growing electric vehicle market.

Negative Factors

Profitability Concerns

Ongoing profitability issues with negative margins indicate challenges in cost management and operational efficiency, impacting long-term financial health.

Cash Flow Challenges

Negative cash flows highlight difficulties in generating sufficient cash from operations, which could constrain future growth and investment capabilities.

Return on Equity

A negative return on equity suggests that the company is not efficiently using shareholder funds to generate profits, impacting investor confidence and long-term value creation.

Sherritt International Business Overview & Revenue Model

Company Description

Sherritt International Corporation is a Canadian resource company primarily engaged in the mining and refining of nickel and cobalt, as well as oil and gas production. With operations mainly in Canada, Cuba, and Madagascar, Sherritt focuses on the extraction of metals critical for various applications, including batteries for electric vehicles. The company also has a significant presence in the oil and gas sector, contributing to its diversification and sustainability initiatives.

How the Company Makes Money

Sherritt International generates revenue primarily through the sale of nickel and cobalt, which are sourced from its mining operations, particularly from its Ambatovy joint venture in Madagascar. The company has established long-term contracts with various customers for the supply of these metals, ensuring a steady revenue stream. Additionally, Sherritt earns income from its oil and gas operations, which involve the production and sale of hydrocarbons in Cuba. The company's revenue model is further bolstered by strategic partnerships, such as those with other mining companies and joint ventures, which provide access to additional resources and markets. Fluctuations in commodity prices, operational efficiency, and the global demand for nickel and cobalt, driven by the electric vehicle market, are significant factors influencing Sherritt's earnings.

Sherritt International Financial Statement Overview

Summary

Sherritt International faces substantial financial challenges, with negative profitability and cash flow difficulties. The income statement shows significant losses, and the cash flow analysis indicates severe issues in converting earnings into cash. The balance sheet is moderately stable with a balanced debt-to-equity ratio, but the negative return on equity highlights the need for strategic improvements.

Income Statement

Sherritt International's income statement reveals a challenging financial position. The TTM data shows a negative net profit margin of -31.86%, indicating significant losses relative to revenue. Revenue growth has been negative, with a decline of 4.57% in the TTM period. The gross profit margin has also decreased to 5.23%, reflecting reduced profitability. Despite these challenges, the company has managed to slightly improve its EBITDA margin to 2.05% in the TTM period, suggesting some operational efficiency improvements.

Balance Sheet

The balance sheet shows a moderate financial structure with a debt-to-equity ratio of 0.60, indicating a balanced use of debt and equity financing. However, the return on equity is negative at -9.01%, reflecting the company's inability to generate positive returns for shareholders. The equity ratio stands at 44.22%, suggesting a reasonable level of equity financing relative to total assets.

Cash Flow

Cash flow analysis indicates significant challenges, with a negative free cash flow growth rate of -92.06% in the TTM period. The operating cash flow to net income ratio is low at 0.02, highlighting difficulties in converting earnings into cash. The free cash flow to net income ratio is also negative, indicating cash flow issues relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	160.70M	158.80M	223.30M	178.80M	110.20M	119.80M
Gross Profit	8.40M	20.30M	-42.20M	16.10M	-30.80M	-38.10M
EBITDA	3.30M	-18.60M	-12.00M	135.50M	-19.10M	7.30M
Net Income	-51.20M	-72.80M	-64.60M	63.50M	-13.40M	-85.70M
Balance Sheet
Total Assets	1.23B	1.38B	1.39B	1.56B	1.40B	1.35B
Cash, Cash Equivalents and Short-Term Investments	17.80M	34.30M	119.10M	123.90M	145.60M	167.40M
Total Debt	324.40M	382.30M	366.60M	350.90M	444.50M	441.40M
Total Liabilities	686.80M	785.40M	777.00M	860.70M	813.00M	745.40M
Stockholders Equity	544.20M	597.40M	613.60M	694.90M	585.00M	606.80M
Cash Flow
Free Cash Flow	-3.50M	-32.90M	6.00M	60.20M	-15.10M	28.60M
Operating Cash Flow	5.30M	-26.10M	27.30M	88.70M	-4.40M	40.70M
Investing Cash Flow	5.20M	36.10M	-18.40M	-23.40M	-9.90M	-11.40M
Financing Cash Flow	-21.10M	7.10M	-11.70M	-93.30M	-6.90M	-26.40M

Sherritt International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:S, the sentiment is Positive. The current price of 0.17 is below the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.17, and above the 200-day MA of 0.15, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 73.20 is Negative, neither overbought nor oversold. The STOCH value of 81.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:S.

Sherritt International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
WM	56 Neutral	C$115.91M	-9.79	-3.76%	―	―	9.35%
MN	52 Neutral	C$27.90M	-13.83	-78.78%	―	―	29.85%
FSY	50 Neutral	C$106.46M	-37.83	-9.83%	―	―	49.12%
S	47 Neutral	C$136.48M	-1.55	-12.98%	―	13.25%	31.69%
PML	46 Neutral	C$124.16M	-54.82	-4.35%	―	―	-45.61%
WHY	45 Neutral	C$42.94M	-10.14	―	―	―	8.06%

Sherritt International Corporate Events

Sherritt International and Pala Assets Forge Strategic Collaboration

Sherritt International has entered into a collaboration agreement with Pala Assets Holdings, resulting in board and committee changes to support a leadership transition and strategic execution. Pala will observe a standstill period until 2027, allowing it to increase its ownership in Sherritt up to 9.99% and vote in favor of the board’s slate. This agreement aims to provide stability and unlock value through the selection of a new CEO, with Brett Richards joining the board to bring extensive mining leadership experience.

The most recent analyst rating on (TSE:S) stock is a Hold with a C$0.16 price target. To see the full list of analyst forecasts on Sherritt International stock, see the TSE:S Stock Forecast page.

Sherritt International Announces Leadership Transition Amid Strategic Progress

Sherritt International Corporation announced a leadership transition with Leon Binedell stepping down as President and CEO, and Dr. Peter Hancock appointed as interim CEO. This change comes as Sherritt has made significant progress on strategic initiatives under Binedell’s leadership, including the expansion of the Moa Joint Venture and optimization of the Power division. The board has initiated a search for a permanent CEO, aiming to ensure continued strategic growth and stability.

The most recent analyst rating on (TSE:S) stock is a Hold with a C$0.15 price target. To see the full list of analyst forecasts on Sherritt International stock, see the TSE:S Stock Forecast page.

Sherritt International Appoints Brian Imrie as New Board Chair

Sherritt International has appointed Brian Imrie as the new independent Chair of its Board of Directors, succeeding Leon Binedell and Shelley Brown, who will remain as directors. Imrie’s extensive experience in the mining sector and capital markets is expected to support Sherritt’s growth strategy and board refreshment commitments, aligning with agreements with Ewing Morris & Co. and SC2 Inc. This strategic leadership change aims to enhance Sherritt’s industry positioning and stakeholder relations.

The most recent analyst rating on (TSE:S) stock is a Hold with a C$0.25 price target. To see the full list of analyst forecasts on Sherritt International stock, see the TSE:S Stock Forecast page.

Sherritt International Completes Moa JV Expansion Amidst Strategic Cost Reductions

Sherritt International has completed its Moa Joint Venture expansion, marking a significant milestone in its operations. The company has implemented cost reduction initiatives expected to save $20 million annually, positioning itself to benefit from nickel and cobalt price recoveries. Despite challenges in the Cuban operating environment, Sherritt is advancing its recovery plan at Moa and anticipates long-term benefits from geopolitical shifts in critical mineral value chains.

The most recent analyst rating on (TSE:S) stock is a Hold with a C$0.25 price target. To see the full list of analyst forecasts on Sherritt International stock, see the TSE:S Stock Forecast page.