Sprott (TSE:SII)
TSX:SII
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Sprott
(TSX:SII)
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Rating:77Outperform
Price Target:
C$196.00
â–¼(-3.89% Downside)
Action:Reiterated
Date:05/09/26
Overall score reflects strong financial performance (high margins, strong cash conversion, minimal leverage) reinforced by a positive earnings-call backdrop of rapid AUM and profitability momentum. The score is tempered by a softer near-term technical picture (negative MACD and below the 50DMA) and a relatively expensive valuation (P/E ~31.9 with ~1% yield), alongside guidance noting near-term compensation-related volatility.
Positive Factors
Balance sheet strength
Sprott's minimal leverage and improved returns on equity (~25% TTM) provide durable financial flexibility. Low debt reduces refinancing and interest risk, enabling sustained dividend increases, opportunistic buybacks, and continued product investment while helping the firm withstand metal-market cycles.
Negative Factors
Lumpy performance fee mix
A sizeable share of recent profits came from episodic carried interest and harvested legacy gains, which undermines recurring revenue predictability. This lumpy fee profile makes forward margin and cash-flow modeling less reliable and can produce material swings in profitability across reporting periods.
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Positive Factors
Negative Factors
Balance sheet strength
Sprott's minimal leverage and improved returns on equity (~25% TTM) provide durable financial flexibility. Low debt reduces refinancing and interest risk, enabling sustained dividend increases, opportunistic buybacks, and continued product investment while helping the firm withstand metal-market cycles.
Read all positive factors
Sprott (SII) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$4.46B
Dividend Yield1.32%
Average Volume (3M)64.18K
Price to Earnings (P/E)44.5
Beta (1Y)1.70
Revenue Growth115.09%
EPS Growth68.03%
CountryCA
Employees132
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)3.69
Shares Outstanding25,786,259
10 Day Avg. Volume81,905
30 Day Avg. Volume64,179
Financial Highlights & Ratios
PEG Ratio1.36
Price to Book (P/B)9.46
Price to Sales (P/S)11.75
P/FCF Ratio36.19
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$238.69Price Target Upside17.04% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)4.5
Revenue Forecast (FY)C$335.19M
Sprott Business Overview & Revenue Model
Company Description
Sprott Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides asset management, portfolio management, wealth management, fund management, and administrative and consulting services to its clients. It...
How the Company Makes Money
Sprott primarily makes money by earning fees for managing client assets and operating investment products and strategies focused on precious metals and real assets. Key revenue streams typically include: (1) management fees based on a percentage o...
Sprott Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call emphasized strong and broad-based growth across AUM, physical trusts, ETFs and managed equity strategies, with materially improved profitability (adjusted EBITDA and net income) and strengthened liquidity and shareholder returns (33% dividend increase). Key operational wins include rapid ETF and copper product scale, top-performing ETFs, and continued product expansion (US listing for the Physical Copper Trust and European distribution growth). Offsetting items are largely transitional or episodic: increased accounting-driven stock‑based compensation volatility from a cash‑settled RSU plan, lumpy carried interest/performance fees, short‑term metal price volatility (notably silver), and some strategy-specific outflows or private fund transitions. Overall, the positive AUM/earnings momentum and product momentum outweigh the accounting and episodic challenges.Positive Updates
Substantial AUM Growth and Post-Period Momentum
Assets under management finished the year at $59.6 billion (up 89% YoY from $31.5 billion as of Dec 31, 2024 and up 21% from $49.1 billion as of Sep 30, 2025). AUM increased by $10.5 billion during Q4 and continued to grow post-year-end to $70.1 billion as of Feb 13, 2026 (an additional $10.5 billion), driven by $7.7 billion of market appreciation and $2.8 billion of net inflows.
Negative Updates
Accounting Impact of Cash-Settled Stock Plan
Change to a cash-settled stock plan (IFRS 2 mark-to-market and graded vest accounting) materially increased reported stock-based compensation expense and P&L volatility (company noted this nearly doubled RSUs subject to accounting vs. what will actually vest). Management expects elevated stock-based compensation through at least H1 2026.
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Q4-2025 Updates
Positive
Negative
Substantial AUM Growth and Post-Period Momentum
Assets under management finished the year at $59.6 billion (up 89% YoY from $31.5 billion as of Dec 31, 2024 and up 21% from $49.1 billion as of Sep 30, 2025). AUM increased by $10.5 billion during Q4 and continued to grow post-year-end to $70.1 billion as of Feb 13, 2026 (an additional $10.5 billion), driven by $7.7 billion of market appreciation and $2.8 billion of net inflows.
Read all positive updates
Company Guidance
Sprott guided that 2026 will likely be a more volatile but constructive year for its metals- and critical‑materials-focused platform, expecting continued government involvement to shore up supply, a rotation out of AI into natural resources, and that rising investor interest should translate into meaningful sales; management highlighted scale to drive margin and EBITDA (Adj. EBITDA was $42M in Q4 and $121M FY), citing AUM momentum — $59.6B year‑end 2025 (up $10.5B in Q4 and $28.1B YoY) and $70.1B as of Feb 13 (a $7.7B market gain plus $2.8B net inflows) — plus physical trusts at $47B (97% growth, +$7B YTD) and ETFs up 94% in 2025 (from $4.6B at year‑end toward ~ $7B YTD; breakevens ~$25–75M); they expect continued stock‑based comp pressure in H1 2026, lower P&L volatility in H2, at least one new ETF in H1, and ongoing dividend growth (dividend +33% in Nov) with opportunistic buybacks.Sprott Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 420.21M | 295.12M | 168.35M | 146.30M | 154.27M | 164.94M |
| Gross Profit | 317.89M | 269.82M | 80.82M | 64.17M | 66.62M | 78.48M |
| EBITDA | 135.30M | 95.70M | 74.32M | 57.19M | 31.36M | 50.90M |
| Net Income | 95.46M | 68.52M | 49.29M | 41.80M | 17.63M | 33.19M |
Balance Sheet | ||||||
| Total Assets | 504.63M | 524.82M | 388.80M | 378.83M | 383.75M | 365.87M |
| Cash, Cash Equivalents and Short-Term Investments | 174.69M | 123.86M | 47.06M | 22.89M | 55.03M | 55.94M |
| Total Debt | 0.00 | 1.49M | 0.00 | 24.24M | 54.44M | 29.77M |
| Total Liabilities | 124.31M | 158.25M | 65.15M | 73.13M | 106.48M | 74.65M |
| Stockholders Equity | 380.31M | 366.58M | 323.65M | 305.70M | 277.27M | 291.22M |
Cash Flow | ||||||
| Free Cash Flow | 145.63M | 95.84M | 67.28M | 28.33M | 32.37M | 50.55M |
| Operating Cash Flow | 147.54M | 97.69M | 69.15M | 29.86M | 32.50M | 51.25M |
| Investing Cash Flow | 26.19M | 9.32M | 24.52M | 4.61M | -23.49M | -20.63M |
| Financing Cash Flow | -41.67M | -33.26M | -57.17M | -63.46M | -3.90M | -24.19M |
Sprott Technical Analysis
Negative
203.94
Price Trends
190.33
Negative
184.02
Negative
147.97
Positive
Market Momentum
-3.91
Positive
41.07
Neutral
13.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SII, the sentiment is Negative. The current price of 203.94 is above the 20-day moving average (MA) of 182.77, above the 50-day MA of 190.33, and above the 200-day MA of 147.97, indicating a neutral trend. The MACD of -3.91 indicates Positive momentum. The RSI at 41.07 is Neutral, neither overbought nor oversold. The STOCH value of 13.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SII.
Sprott Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | C$18.00B | 13.67 | 13.19% | 3.59% | 17.16% | 22.85% | |
77 Outperform | C$4.46B | 44.53 | 24.26% | 1.32% | 115.09% | 68.03% | |
73 Outperform | C$105.79B | 29.74 | 30.06% | 3.37% | 247.78% | 9.76% | |
70 Outperform | C$8.01B | 10.50 | 6.52% | 0.36% | 2.88% | 32.70% | |
69 Neutral | C$1.09B | 18.29 | 9.72% | 3.01% | 4.44% | 18.34% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | C$571.50M | 50.26 | 7.80% | 8.78% | -8.34% | -48.32% |
* Financial Sector Average
TSE:SII
Sprott
172.82
94.04
119.37%
TSE:IGM
IGM Financial
77.44
34.77
81.47%
TSE:AGF.B
AGF Management B NV
16.92
5.85
52.83%
TSE:FSZ
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5.36
0.07
1.34%
TSE:ONEX
ONEX Corporation
105.05
4.71
4.69%
TSE:BAM
Brookfield Asset Management Ltd. Class A
66.25
-10.55
-13.73%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.