Sierra Growth (SGRO) AI Stock Analysis

• Market Cap: C$2.34M
• Dividend Yield: N/A
• Average Volume (3M): 4.43K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.11
• Revenue Growth: N/A
• EPS Growth: -3437.50%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.06
• Shares Outstanding: 29,311,214
• 10 Day Avg. Volume: 5,251
• 30 Day Avg. Volume: 4,427
• PEG Ratio: -0.02
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 238.01
• 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: 42 Neutral
• Price Target: C$0.08 ▼(-3.75% Downside)

The score is primarily weighed down by weak underlying operating performance (negative EBIT, limited revenue visibility, and a history of cash burn) despite a debt-free balance sheet and some 2024 improvement in net income and operating cash flow. Technical indicators also remain bearish (below key moving averages, negative MACD, low RSI), while valuation is unattractive/uncertain due to a negative P/E and no dividend support.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet provides financial stability and flexibility, allowing Sierra Growth to invest in future projects without the burden of interest payments.

Positive Operating Cash Flow Shift

Improvement in operating cash flow suggests better cash management and operational efficiencies, which can support future investments and reduce financial strain.

Strategic Partnerships

Strategic partnerships enhance project capabilities and financial stability, potentially leading to increased revenue streams and competitive advantages in the renewable energy sector.

Negative Factors

Zero Revenue Generation

The lack of revenue generation is a critical weakness, limiting the company's ability to cover costs, invest in growth, and achieve profitability, posing long-term sustainability risks.

Negative Free Cash Flow

Persistent negative free cash flow suggests operational inefficiencies and financial strain, hindering Sierra Growth's ability to fund capital expenditures and strategic initiatives.

Consistent Net Losses

Ongoing net losses reflect operational challenges and an inability to achieve profitability, which can erode investor confidence and limit access to capital for future growth.

Sierra Growth Business Overview & Revenue Model

Company Description

Sierra Grande Minerals Inc. engages in the acquisition and development of resource properties. It has an agreement to earn a 100% interest in 3 epithermal gold-silver projects. The company was formerly known as Sierra Growth Corp. and changed its name to Sierra Grande Minerals Inc. in July 2021. Sierra Grande Minerals Inc. was incorporated in 1994 and is headquartered in Surrey, Canada.

How the Company Makes Money

Sierra Growth generates revenue through multiple streams, primarily by developing and managing renewable energy projects. The company earns money by selling the electricity generated from its solar and wind farms to utility companies and other energy buyers under long-term power purchase agreements (PPAs). Additionally, SGRO may receive government incentives and tax credits for its contributions to clean energy production. The company also engages in strategic partnerships with technology firms and financial institutions to enhance its project capabilities and financial stability, thereby boosting its revenue potential.

Sierra Growth Financial Statement Overview

Summary

Financials show improvement in 2024 (net income turned positive and operating cash flow turned positive), and the balance sheet is conservatively financed with zero reported debt and rising equity. However, core operating profitability remains weak with negative EBIT even in 2024, revenue is reported as zero (limiting operating visibility), and the multi-year history includes losses and cash burn with only thin free cash flow.

Income Statement

Earnings quality is mixed: the company swung from net losses in 2019–2023 to positive net income in 2024, and EBITDA also improved to positive in 2024. However, operating profitability remains weak with negative EBIT across all periods shown (including 2024), suggesting core operations are still not consistently profitable. Revenue is reported as zero across all years, which limits visibility into business scale and makes margin trends difficult to rely on.

Balance Sheet

The balance sheet looks conservatively financed with total debt reported at zero in every period and equity steadily building from 2020 to 2024. Asset growth is also evident, and 2024 shows a positive return on equity after several years of negative returns. The main weakness is historical volatility in profitability (very negative returns in earlier years), which indicates the asset base has not consistently generated returns despite the stronger capital position.

Cash Flow

Cash generation improved notably in 2024 with operating cash flow turning positive after multiple years of outflows, and operating cash flow exceeded net income. That said, free cash flow in 2024 is only slightly positive and materially weaker than net income, and free cash flow fell sharply versus the prior year (from a very negative base). The multi-year history of negative operating and free cash flow underscores ongoing execution risk and reliance on improving fundamentals to sustain liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	0.00	0.00	-1.08K
EBITDA	22.97K	309.16K	222.57K	-406.56K	1.07M	-1.91M
Net Income	-57.30K	309.16K	-375.00K	-407.00K	-610.00K	-1.91M
Balance Sheet
Total Assets	2.27M	2.50M	2.16M	2.23M	514.71K	242.70K
Cash, Cash Equivalents and Short-Term Investments	626.50K	782.66K	877.74K	1.23M	74.83K	223.34K
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	34.21K	48.87K	23.62K	123.36K	44.89K	150.43K
Stockholders Equity	2.24M	2.45M	2.14M	2.10M	469.81K	92.27K
Cash Flow
Free Cash Flow	-156.33K	4.93K	-697.97K	-824.53K	-904.85K	-380.02K
Operating Cash Flow	27.66K	325.48K	-366.72K	-319.83K	-483.91K	-330.11K
Investing Cash Flow	-266.46K	-420.55K	-281.25K	-554.70K	-408.23K	205.68K
Financing Cash Flow	0.00	0.00	295.00K	2.03M	743.64K	0.00

Sierra Growth Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SGRO, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.09, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 35.28 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SGRO.

Sierra Growth 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%
CCB	46 Neutral	C$3.63M	-1.88	-72.19%	―	―	-73.91%
VRB	45 Neutral	C$2.45M	-4.10	-4.76%	―	―	84.01%
SGRO	42 Neutral	C$2.34M	-1.41	-119.25%	―	―	-3437.50%
ULT	32 Underperform	C$3.82M	-0.82	-58.50%	―	―	-123.85%