Sprott (SII) AI Stock Analysis

• Market Cap: $2.40B
• Dividend Yield: 2.47%
• Average Volume (3M): 58.64K
• Price to Earnings (P/E): 34.4
• Beta (1Y): 1.36
• Revenue Growth: 19.98%
• EPS Growth: 18.77%
• Country: CA
• Employees: 132
• Sector: Financial
• Sector Strength: 81
• Industry: Asset Management
• EPS (TTM): 0.62
• Shares Outstanding: 25,814,860
• 10 Day Avg. Volume: 64,687
• 30 Day Avg. Volume: 58,644
• PEG Ratio: -1.00
• Price to Book (P/B): 3.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.73
• Enterprise Value/Market Cap: 0.35
• Enterprise Value/Revenue: 1.26
• Enterprise Value/Gross Profit: 10.26
• Enterprise Value/Ebitda: 3.04
• 1Y Price Target: $93.99
• Price Target Upside: 1.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: ―

Sprott's overall stock score reflects its strong financial performance, with robust growth and profitability supported by a solid balance sheet. While its technical indicators suggest caution, the company's valuation and strategic initiatives provide a balanced outlook. The recent corporate events and positive earnings call sentiment further bolster its position in the market.

Positive Factors

Business Model

Sprott benefits from a scalable business model, generating significant free cash flow and supporting valuations north of 20x earnings.

Debt-Free Balance Sheet

Sprott boasts a debt-free balance sheet generating over $60M in free cash flow, providing flexibility for capital deployment such as rising dividends and share buybacks.

Net Flows

SII appears on track to deliver +10% net flows underpinned by rising demand for the firm's physical gold, silver, and uranium trusts, which combined account for 60%+ of firm AUM.

Negative Factors

Market Uncertainties

The Physical Gold Trust is seeing rising institutional interest amid elevated macro uncertainties, which is reflected in increased trading volume activity, indicating potential market volatility.

Valuation Concerns

The stock's 24x earnings valuation remains consistent with historical averages and supported by peer valuations, which may concern value-focused investors.

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 offers mutual funds, hedge funds, and offshore funds, along with managed accounts. Further, the firm also provides broker-dealer activities. Sprott Inc. was formed on February 13, 2008 and is based in Toronto, Canada.

How the Company Makes Money

Sprott Inc. generates revenue primarily through management fees, performance fees, and transaction fees associated with its investment products and services. Management fees are charged as a percentage of assets under management (AUM) and represent a stable income stream. Performance fees are earned when the investment returns exceed certain benchmarks, aligning Sprott's interests with those of its clients. Transaction fees are collected from services related to the trading and management of client assets. The company's focus on precious metals and real assets attracts investors seeking diversification and protection against inflation, contributing significantly to its earnings. Additionally, Sprott partners with various financial institutions and leverages its expertise in niche markets to enhance its product offerings and expand its client base.

Sprott Financial Statement Overview

Summary

Sprott's financial statements reflect strong growth, profitability, and financial stability. The company has achieved significant revenue growth and improved profit margins, underpinned by a solid balance sheet with zero debt. Cash flow metrics highlight robust cash generation and efficient capital management. While the absence of EBIT in 2024 warrants attention, overall, Sprott is well-positioned for continued success in the asset management industry.

Income Statement

Sprott has demonstrated strong revenue growth with a 15.1% increase from 2023 to 2024, alongside a healthy gross profit margin of 48.0% in 2024. However, the absence of EBIT in 2024 may raise concerns about operational efficiency. Net profit margin improved significantly to 29.3%, showcasing enhanced profitability.

Balance Sheet

The company maintains a robust balance sheet with no total debt recorded in 2024, indicating strong financial stability. The equity ratio stands at 83.2%, reflecting sound financial health and limited leverage risk. Return on equity improved to 15.2%, highlighting efficient use of equity.

Cash Flow

Sprott has shown impressive free cash flow growth of 137.5% from 2023 to 2024, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 1.40, suggesting efficient cash conversion, while the free cash flow to net income ratio of 1.37 further underscores liquidity strength.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	170.57M	168.35M	146.30M	154.27M	164.94M	114.41M
Gross Profit	81.43M	80.82M	64.17M	74.23M	87.06M	55.58M
EBITDA	74.19M	74.32M	57.19M	60.94M	67.93M	40.72M
Net Income	49.69M	49.29M	41.80M	17.63M	33.19M	26.98M
Balance Sheet
Total Assets	386.13M	388.80M	378.83M	383.75M	365.87M	377.35M
Cash, Cash Equivalents and Short-Term Investments	56.11M	47.06M	22.89M	55.03M	55.94M	53.58M
Total Debt	0.00	0.00	24.24M	54.44M	29.77M	16.99M
Total Liabilities	59.99M	65.15M	73.13M	106.48M	74.65M	86.36M
Stockholders Equity	326.14M	323.65M	305.70M	277.27M	291.22M	290.98M
Cash Flow
Free Cash Flow	69.89M	67.28M	28.33M	32.37M	50.55M	13.05M
Operating Cash Flow	71.61M	69.15M	29.86M	32.50M	51.25M	26.24M
Investing Cash Flow	27.92M	24.52M	4.61M	-23.49M	-20.63M	-17.09M
Financing Cash Flow	-57.55M	-57.17M	-63.46M	-3.90M	-24.19M	-22.44M

Sprott Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 92.89
• 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:SII, the sentiment is Positive. The current price of 92.89 is above the 20-day moving average (MA) of 88.35, above the 50-day MA of 80.93, and above the 200-day MA of 65.90, indicating a bullish trend. The MACD of 3.61 indicates Negative momentum. The RSI at 72.18 is Negative, neither overbought nor oversold. The STOCH value of 86.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SII.

Sprott Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SII	79 Outperform	$2.40B	34.42	15.69%	2.47%	19.98%	18.77%
AGF.B	78 Outperform	C$864.07M	8.22	9.24%	3.80%	16.93%	17.52%
CVG	77 Outperform	C$1.10B	9.07	10.05%	1.04%	120.44%	―
FSZ	72 Outperform	C$694.80M	17.67	13.09%	9.12%	3.59%	-43.99%
GCG	71 Outperform	C$1.06B	14.65	5.62%	4.94%	35.78%	-24.67%
Sector *	67 Neutral	$16.84B	11.72	9.71%	3.76%	11.61%	-9.60%
WED	61 Neutral	C$1.03B	12.73	-9.16%	―	100.87%	-110.30%

Sprott Corporate Events

Sprott Physical Silver Trust Surpasses $6 Billion in Net Asset Value

Sprott Inc. announced that the net asset value of its Sprott Physical Silver Trust has exceeded $6 billion, marking a significant milestone for the trust. The trust, which is the second largest exchange-listed physical silver fund globally, is fully backed by physical silver and offers a liquid, exchange-listed investment vehicle for investors. This achievement underscores the trust’s strong market position and highlights the increasing importance of physical silver ownership in the current market environment.

Sprott Physical Gold Trust Surpasses $10 Billion in Net Asset Value

Sprott Physical Gold Trust, managed by Sprott Inc., has announced that its net asset value has exceeded $10 billion, reflecting the growing demand for physical gold investments. This milestone highlights the trust’s role in providing a secure and convenient way for investors to own physical gold, especially as global central bank purchases drive gold prices to new highs. The trust’s fully allocated gold holdings and exchange-traded format offer a practical alternative to direct gold investment, positioning Sprott favorably in the precious metals market.

Sprott Inc. Reports 2024 Financial Results with Strong AUM Growth

Sprott Inc. reported its financial results for the year ended December 31, 2024, highlighting a 10% increase in Assets Under Management (AUM) from the previous year, despite a 6% decline in the fourth quarter. The company benefited from strong precious metals prices and net sales, particularly in its physical trusts and ETFs. Revenue growth was driven by higher management fees and performance fees, although commission revenues saw a decline due to reduced activity and the sale of a Canadian broker-dealer. Sprott continues to invest in sales and marketing to enhance client service and maintain its leadership in the industry.

Sprott Inc. Announces Fourth Quarter 2024 Dividend

Sprott Inc. has declared a fourth quarter 2024 dividend of US$0.30 per common share, payable on March 25, 2025, to shareholders of record as of March 10, 2025. This announcement reflects Sprott’s ongoing commitment to providing value to its shareholders and may enhance its attractiveness to investors interested in the precious metals and critical materials sectors.

Sprott Inc. Sets Date for 2024 Q4 Earnings Release and Webcast

Sprott Inc. announced it will release its fourth-quarter results for 2024 on February 26, 2025, at 7:00 a.m., followed by an earnings webcast at 10:00 a.m. The webcast will be hosted by CEO Whitney George, CFO Kevin Hibbert, and Sprott Asset Management CEO John Ciampaglia. This announcement highlights Sprott’s commitment to transparency and communication with its stakeholders, which may impact investor confidence and industry positioning.

Sprott Inc. Launches Active Gold & Silver Miners ETF

Sprott Inc. has launched its first actively managed ETF, the Sprott Active Gold & Silver Miners ETF (GBUG), which is aimed at achieving long-term capital appreciation by investing in companies focused on gold and silver exploration, development, and mining, as well as royalty and streaming companies. This launch leverages Sprott’s extensive expertise in precious metals and mining investments, offering a unique opportunity for investors to benefit from active stock picking in a complex industry. The ETF combines active management’s advantages with ETF features like daily transparency and liquidity, positioning Sprott as a leader in the precious metals investment sector.