Sprott (SII) AI Stock Analysis

• Market Cap: C$5.18B
• Dividend Yield: 1.32%
• Average Volume (3M): 64.18K
• Price to Earnings (P/E): 36.9
• Beta (1Y): 1.60
• Revenue Growth: 35.51%
• EPS Growth: 7.55%
• Country: CA
• Employees: 132
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.52
• Shares Outstanding: 25,786,259
• 10 Day Avg. Volume: 81,905
• 30 Day Avg. Volume: 64,179
• PEG Ratio: 0.42
• Price to Book (P/B): 6.89
• Price to Sales (P/S): 8.56
• P/FCF Ratio: 25.90
• 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: C$197.83
• Price Target Upside: -1.52% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 4.09
• Revenue Forecast (FY): C$285.36M

• Rating: 78 Outperform
• Price Target: C$245.00 ▲(21.97% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by strong financial quality (high profitability, zero debt, and solid cash generation) reinforced by positive earnings-call momentum and AUM/ETF growth. Technicals are supportive but overextended, and the key constraint is a rich valuation (high P/E with a modest yield).

Positive Factors

Conservative balance sheet

Zero reported debt and materially higher equity give Sprott durable financial flexibility. Low leverage reduces solvency risk during commodity cycles, supports dividend policy and M&A or product investment, and preserves optionality to withstand AUM-driven revenue swings.

Reliable cash generation

Consistent free-cash-flow conversion of earnings demonstrates high earnings quality and funds operations, dividends and growth without reliance on debt. Persistent FCF supports reinvestment in products and ETF distribution, enhancing long-term self-funded expansion.

Large, growing AUM and ETF scale

Rapid AUM and ETF scale build a recurring-fee base and product diversification that reduce per-dollar costs and improve margin leverage. Larger ETFs nearing breakeven and rising institutional flows create a sustainable revenue runway independent of any single product.

Negative Factors

Commodity price sensitivity

Sprott’s fee revenue and AUM are structurally linked to precious metals and critical materials performance. Prolonged weakness in these markets can meaningfully reduce AUM, recurring fees and incentive fees, producing persistent earnings pressure beyond management control.

Historic growth volatility

Wide swings in revenue and periodic margin variability indicate earnings instability tied to market cycles and flows. This makes multi-quarter planning and capital allocation harder, and can impair predictable fee income and investor confidence over a multi-quarter horizon.

Operating cash coverage variability

Although FCF tracks earnings overall, intermittent working-capital and timing swings reduce short-term liquidity reliability. Such variability and transitional accounting items can complicate cash forecasting and may constrain opportunistic investments or payout consistency during stress periods.

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

Strong overall fundamentals: high profitability with a major 2025 revenue step-up while sustaining ~23% net margin, an exceptionally conservative balance sheet with zero debt in 2024–2025 and rising equity, and solid cash conversion with free cash flow generally tracking earnings. The main offset is meaningful year-to-year volatility in growth and some cash-flow coverage swings, consistent with market-sensitive asset-management results.

Income Statement

Profitability is strong with consistently healthy net margins (roughly low-20% to ~29% historically) and solid operating margins, culminating in a major 2025 revenue step-up (over 100% growth) while still delivering ~23% net margin. The main weakness is volatility in growth (declines in 2022–2023 followed by an outsized rebound in 2025) and some margin variability year-to-year (e.g., notably lower profitability in 2022 versus later years).

Balance Sheet

The balance sheet is very conservatively positioned: debt is 0 in 2024 and 2025 (and modest prior to that), resulting in minimal leverage risk. Equity has grown materially (from ~$277M in 2022 to ~$503M in 2025), and returns on equity improved to ~18.7% in 2025, indicating efficient capital use. The key watch-out is that asset-management earnings can be market-sensitive, so strong equity levels help, but profitability may still fluctuate with market conditions.

Cash Flow

Cash generation is solid, with free cash flow closely tracking net income across years (generally near 1:1), suggesting earnings quality is good and cash conversion is reliable. Free cash flow growth turned strongly positive in 2024–2025, including a large jump in 2025. The main weakness is variability in how well operating cash flow covers net income (notably weaker in 2020 and lower again in 2025 versus 2024), indicating periodic working-capital or timing swings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	405.28M	168.35M	146.30M	154.27M	164.94M
Gross Profit	370.53M	80.82M	64.17M	66.62M	78.48M
EBITDA	131.42M	74.32M	57.19M	31.36M	50.90M
Net Income	94.10M	49.29M	41.80M	17.63M	33.19M
Balance Sheet
Total Assets	720.71M	388.80M	378.83M	383.75M	365.87M
Cash, Cash Equivalents and Short-Term Investments	170.09M	47.06M	22.89M	55.03M	55.94M
Total Debt	2.04M	0.00	24.24M	54.44M	29.77M
Total Liabilities	217.31M	65.15M	73.13M	106.48M	74.65M
Stockholders Equity	503.40M	323.65M	305.70M	277.27M	291.22M
Cash Flow
Free Cash Flow	133.91M	67.28M	28.33M	32.37M	50.55M
Operating Cash Flow	136.50M	69.15M	29.86M	32.50M	51.25M
Investing Cash Flow	17.28M	24.52M	4.61M	-23.49M	-20.63M
Financing Cash Flow	-50.73M	-57.17M	-63.46M	-3.90M	-24.19M

Sprott Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 200.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SII, the sentiment is Neutral. The current price of 200.87 is below the 20-day moving average (MA) of 209.63, above the 50-day MA of 181.91, and above the 200-day MA of 124.81, indicating a neutral trend. The MACD of 9.76 indicates Positive momentum. The RSI at 49.80 is Neutral, neither overbought nor oversold. The STOCH value of 12.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:SII.

Sprott Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGF.B	79 Outperform	C$1.21B	7.10	9.85%	3.01%	11.23%	30.44%
SII	78 Outperform	C$5.18B	36.86	14.90%	1.32%	35.51%	7.55%
BAM	73 Outperform	C$97.95B	33.39	41.10%	3.37%	597.75%	50.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IGM	67 Neutral	C$15.00B	13.28	12.37%	3.59%	-1.02%	-5.65%
ONEX	65 Neutral	C$7.43B	9.04	7.20%	0.36%	2.46%	-27.48%
FSZ	54 Neutral	C$549.11M	17.05	14.44%	8.78%	-0.88%	-52.30%

Sprott Corporate Events

Sprott’s Assets and Fee Income Surge on Precious Metals and Critical Materials Boom

Sprott reported a sharp expansion in 2025, with assets under management climbing 89% year over year to $59.6 billion, driven by market appreciation and $3.9 billion in net sales, mainly in its exchange-listed products. The firm benefited from a strong rally in gold, silver, platinum and palladium, as well as rising demand for critical materials strategies amid heightened geopolitical tensions.

Revenue momentum was robust, with full-year management fees up 28% to $199 million and net fees up 49% to $216 million, supported by higher AUM, strong inflows into precious metals vehicles, and a surge in performance and carried interest fees. Commission revenues also advanced on increased ATM activity in its physical uranium trust, while higher incentive and stock-based compensation reflected stronger fee generation and a shift in accounting treatment, underscoring both the profitability and evolving cost structure of the business.

The most recent analyst rating on (TSE:SII) stock is a Buy with a C$193.00 price target. To see the full list of analyst forecasts on Sprott stock, see the TSE:SII Stock Forecast page.

Sprott’s Assets and Fees Surge on Precious Metals and Critical Materials Boom

Sprott Inc. reported a sharp expansion in its business for 2025, with assets under management climbing 89% year-on-year to $59.6 billion, driven by market value gains across most funds and $3.9 billion in net sales, primarily in its exchange-listed products. Management fees, performance fees and carried interest all surged on both quarterly and full-year bases, reflecting strong performance in precious metals and critical materials strategies, higher inflows into physical trusts and ETFs, and robust private strategies, while compensation costs rose alongside fee growth but net compensation ratios improved, underscoring enhanced operating leverage as the firm seeks to capitalize on favorable macro trends.

The strong tailwind from a “banner year” in precious metals, with gold, silver, platinum and palladium significantly outperforming traditional asset classes, underpinned Sprott’s results and reinforced its positioning as a specialist in these markets. Growing investor interest in critical materials, supported by heightened geopolitical tensions and government intervention, further boosted the company’s strategies and suggests continued opportunity for asset growth and value creation for shareholders, even as higher stock-based compensation reflects accounting changes tied to new employee plans.

The most recent analyst rating on (TSE:SII) stock is a Buy with a C$193.00 price target. To see the full list of analyst forecasts on Sprott stock, see the TSE:SII Stock Forecast page.

Sprott Declares Q4 2025 Dividend and Details Cross-Border Payout Terms

Sprott Inc. has declared a fourth-quarter 2025 dividend of US$0.40 per common share, payable on March 17, 2026 to shareholders of record as of March 2, 2026. The dividend is designated as an eligible dividend for Canadian income tax purposes, reinforcing Sprott’s ongoing capital return strategy to shareholders.

Canadian-registered and certain Canadian beneficial shareholders will receive the dividend in Canadian dollars based on the March 17, 2026 spot exchange rate, while non-Canadian holders and those using U.S. depositories will be paid in U.S. dollars. Investors have some flexibility to elect their preferred payout currency through their intermediaries, underscoring attention to cross-border investor needs in Sprott’s shareholder base.

The most recent analyst rating on (TSE:SII) stock is a Buy with a C$193.00 price target. To see the full list of analyst forecasts on Sprott stock, see the TSE:SII Stock Forecast page.

Sprott Sets February 19 Date for Q4 2026 Results Webcast

Sprott Inc., a global asset manager focused on precious metals and critical materials, offers exchange-listed products, managed equity strategies and private investment solutions, serving investors from key North American financial hubs and maintaining dual listings in New York and Toronto. The company announced it will release its fourth-quarter 2026 financial results on February 19, 2026, followed by a same-day webcast led by senior executives to discuss performance, providing investors and analysts with updated insight into its operating trends and strategic positioning in resource-focused asset management.

The most recent analyst rating on (TSE:SII) stock is a Buy with a C$193.00 price target. To see the full list of analyst forecasts on Sprott stock, see the TSE:SII Stock Forecast page.