Sprott (SII) AI Stock Analysis

• Market Cap: C$4.31B
• Dividend Yield: 1.32%
• Average Volume (3M): 64.18K
• Price to Earnings (P/E): 61.3
• Beta (1Y): 1.49
• Revenue Growth: 35.51%
• EPS Growth: 7.55%
• Country: CA
• Employees: 132
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.70
• Shares Outstanding: 25,786,259
• 10 Day Avg. Volume: 81,905
• 30 Day Avg. Volume: 64,179
• PEG Ratio: 1.85
• Price to Book (P/B): 4.76
• Price to Sales (P/S): 9.15
• P/FCF Ratio: 22.89
• 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$174.18
• Price Target Upside: 4.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: C$200.00 ▲(19.79% Upside)

The score is driven primarily by strong financial performance (high margins, debt-free balance sheet, solid cash conversion) and a very constructive earnings call highlighting record AUM growth and strengthening product momentum. The main offsets are expensive valuation (high P/E, modest yield) and technical indicators showing an overheated condition that can increase near-term volatility.

Positive Factors

Debt-free balance sheet

Zero total debt and expanding equity give Sprott durable financial flexibility. A net-cash posture supports investment in product development, opportunistic M&A or buybacks, and dividend increases without leverage-driven risk—important for a firm exposed to cyclical asset flows.

Rapid AUM and ETF scale-up

Sustained, large AUM gains and rapid ETF scaling indicate durable product-market fit in precious metals and resources. Larger recurring AUM improves fee revenue stability, economies of scale for ETF operations and enhances cross-selling potential across institutional and retail channels.

High profitability and cash conversion

Strong margins and near-parity of free cash flow to net income signal high earnings quality. Durable cash generation supports dividend policy, reinvestment in distribution and product development, and cushions the firm through resource-price-driven AUM cycles.

Negative Factors

Revenue sensitivity to commodity cycles

Sprott's fee revenue and performance fees are structurally tied to commodity price movements and AUM valuation. Prolonged weakness in precious metals or resource sectors can materially reduce fees and incentive income, creating lasting volatility in earnings and cash flow.

Slowing cash flow and margin compression

A decline in free cash flow and margin compression versus the prior year indicate emerging pressure on core profitability. If these trends persist, they could erode capital available for dividends, product investment and weaken resilience to AUM drawdowns over the medium term.

Accounting impacts and concentrated redemptions

Transitional accounting from a cash-settled equity plan can depress reported earnings and obscure operating trends, while concentrated redemptions in niche ETFs highlight product-concentration risk. Both factors can reduce earnings visibility and increase flow volatility over months.

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: revenue is up 6.8% TTM with high profitability (gross margin ~44.5%, net margin ~26.7%). Balance sheet strength is excellent with zero debt and solid ~15% ROE. Cash generation is healthy with FCF closely tracking earnings, though TTM FCF is down ~14% and margins are slightly compressed versus 2024.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up 6.8% with strong profitability (gross margin ~44.5% and net margin ~26.7%). Earnings power looks consistently high across recent periods, with net income rising from 2022’s depressed level to ~50.3M TTM. The main weakness is some margin compression versus 2024 (lower gross and net margins), suggesting a slightly less favorable mix or higher costs despite revenue growth.

Balance Sheet

The balance sheet is conservatively positioned with zero total debt in 2024 and TTM (Trailing-Twelve-Months), and equity expanding to ~344.7M on ~466.2M of assets. Returns on equity are solid and steady (~15% in 2024 and TTM), indicating good profitability without leverage. The key limitation is that prior years did carry some debt (notably 2022–2023), so the current net-cash posture is strong but not a long, uninterrupted pattern.

Cash Flow

Cash generation is strong: operating cash flow is ~72.4M TTM and free cash flow is ~70.5M, with free cash flow closely tracking net income (about 0.98x TTM), supporting earnings quality. Operating cash flow also exceeds net income comfortably in TTM. The weakness is momentum—TTM free cash flow declined ~14% versus the prior period, signaling some recent normalization after a stronger 2024.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	199.04M	168.35M	146.30M	154.27M	164.94M	114.41M
Gross Profit	73.83M	80.82M	64.17M	66.62M	78.48M	56.82M
EBITDA	72.24M	74.32M	57.19M	31.36M	50.90M	39.95M
Net Income	50.30M	49.29M	41.80M	17.63M	33.19M	26.98M
Balance Sheet
Total Assets	466.17M	388.80M	378.83M	383.75M	365.87M	377.35M
Cash, Cash Equivalents and Short-Term Investments	80.34M	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	121.44M	65.15M	73.13M	106.48M	74.65M	86.36M
Stockholders Equity	344.73M	323.65M	305.70M	277.27M	291.22M	290.98M
Cash Flow
Free Cash Flow	70.51M	67.28M	28.33M	32.37M	50.55M	25.55M
Operating Cash Flow	72.44M	69.15M	29.86M	32.50M	51.25M	26.24M
Investing Cash Flow	28.94M	24.52M	4.61M	-23.49M	-20.63M	-17.09M
Financing Cash Flow	-58.09M	-57.17M	-63.46M	-3.90M	-24.19M	-22.44M

Sprott Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 166.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 166.96 is above the 20-day moving average (MA) of 164.60, above the 50-day MA of 143.81, and above the 200-day MA of 107.80, indicating a bullish trend. The MACD of 9.71 indicates Positive momentum. The RSI at 53.63 is Neutral, neither overbought nor oversold. The STOCH value of 22.07 is Neutral, 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
AGF.B	79 Outperform	C$1.17B	9.14	9.85%	3.01%	11.23%	30.44%
SII	78 Outperform	C$4.31B	61.29	14.90%	1.32%	35.51%	7.55%
IGM	76 Outperform	C$15.49B	15.10	12.37%	3.59%	-1.02%	-5.65%
ONEX	69 Neutral	C$7.98B	13.29	5.15%	0.36%	2.46%	-27.48%
BAM	68 Neutral	C$110.80B	29.83	36.59%	3.37%	597.75%	50.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FSZ	62 Neutral	C$633.34M	20.53	11.26%	8.78%	-0.88%	-52.30%

Sprott Corporate Events

Sprott Inc. Reports Record AUM and Expands ETF Offerings

Sprott Inc. reported significant growth in its Assets Under Management (AUM), reaching $49.1 billion by the end of Q3 2025, driven by rising precious metals prices and strong performance in managed equities. The company achieved record net sales and expanded its ETF offerings, contributing to a substantial increase in revenue and a 33% dividend hike, reflecting confidence in its future prospects.

The most recent analyst rating on (TSE:SII) stock is a Buy with a C$109.00 price target. To see the full list of analyst forecasts on Sprott stock, see the TSE:SII Stock Forecast page.

Sprott Inc. Boosts Dividend by 33% for Q3 2025

Sprott Inc. has announced a significant 33% increase in its quarterly dividend, raising it to US$0.40 per common share for the third quarter of 2025. This move reflects the company’s robust financial health and commitment to delivering value to its shareholders. The dividend will be paid on December 2, 2025, with Canadian shareholders receiving payments in Canadian dollars and others in U.S. dollars, subject to currency election options. This increase underscores Sprott’s strong position in the asset management industry, particularly in the precious metals and critical materials sectors, and signals confidence in its ongoing growth and profitability.

The most recent analyst rating on (TSE:SII) stock is a Buy with a C$109.00 price target. To see the full list of analyst forecasts on Sprott stock, see the TSE:SII Stock Forecast page.