Sierra Metals (SMT) AI Stock Analysis

• Market Cap: $233.30M
• Dividend Yield: N/A
• Average Volume (3M): 459.30K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.26
• Revenue Growth: 17.12%
• EPS Growth: N/A
• Country: CA
• Employees: 1,170
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Industrial Materials
• EPS (TTM): 0.11
• Shares Outstanding: 212,089,300
• 10 Day Avg. Volume: 802,759
• 30 Day Avg. Volume: 459,298
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.29
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1.10
• Price Target Upside: 0.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

Sierra Metals is showing robust financial and operational performance, with a strong emphasis on revenue and production growth. Despite high capex and takeover uncertainties, the company demonstrates positive momentum in technical indicators and is undervalued according to valuation metrics. These factors contribute to an overall favorable stock outlook, with room for growth but tempered by the need to manage financial risks and market volatility.

Sierra Metals Business Overview & Revenue Model

Company Description

Sierra Metals Inc. is a Canadian mining company focused on the exploration and production of precious and base metals. Operating primarily in Latin America, the company has mining projects in Mexico and Peru, where it extracts minerals such as copper, zinc, lead, silver, and gold. Sierra Metals is dedicated to maintaining sustainable mining practices and delivering high-quality mineral products to global markets.

How the Company Makes Money

Sierra Metals generates revenue through the extraction and sale of mineral commodities such as copper, zinc, lead, silver, and gold. The company operates several mines, notably the Yauricocha Mine in Peru, and the Bolivar and Cusi Mines in Mexico. Revenue is primarily driven by the production and sale of concentrates and doré bars containing the extracted metals. Sierra Metals' earnings are influenced by global commodity prices, production volumes, and operational efficiencies. The company may also engage in strategic partnerships and joint ventures to optimize its mining operations and access new markets.

Sierra Metals Financial Statement Overview

Summary

Sierra Metals has demonstrated significant financial improvements, especially in profitability and operational efficiency. The positive trends in revenue and profit margins are encouraging, although historical volatility in earnings and cash flow highlights the need for cautious financial management. The balance sheet remains stable, but high leverage and asset declines pose potential risks. Ensuring steady cash flow and managing debt levels will be crucial for sustained growth.

Income Statement

Sierra Metals has shown a notable recovery from previous years, with revenue growing by 18.76% from 2023 to 2024. The gross profit margin improved to 24.09% in 2024, indicating better cost management. The net profit margin turned positive at 5.79% after a negative margin in 2023, showing significant improvement in profitability. The EBIT and EBITDA margins also improved to 8.71% and 19.94%, respectively, reflecting operational efficiency. However, the company experienced fluctuations in profitability over the years, highlighting potential volatility.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.95, indicating a balanced approach to leveraging. The equity ratio at 28.01% in 2024 reflects a stable capital structure. Return on Equity (ROE) improved significantly to 15.60% in 2024, signaling enhanced shareholder returns. Nonetheless, the decline in total assets over the years and relatively high debt levels could pose financial risks if not managed carefully.

Cash Flow

Sierra Metals improved its free cash flow to $5.5 million in 2024, a growth of -11.18% from 2023, despite fluctuations in operating cash flow. The operating cash flow to net income ratio is strong at 4.13, which is a positive indicator of cash generation relative to net income. However, capex remains high relative to cash generation, potentially limiting future liquidity. The company needs to ensure consistent cash flow to sustain operations and growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
272.63M	229.54M	192.12M	272.01M	246.89M
	Gross Profit
65.70M	51.84M	5.47M	81.22M	81.58M
	EBIT
23.74M	13.66M	-75.82M	40.91M	51.12M
	EBITDA
54.37M	48.02M	3.32M	86.98M	91.39M
	Net Income Common Stockholders
15.78M	-19.33M	-87.50M	-22.11M	23.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.83M	9.12M	5.07M	34.93M	71.47M
	Total Assets
361.01M	314.12M	310.44M	396.82M	439.59M
	Total Debt
95.74M	86.01M	89.01M	83.44M	100.46M
	Net Debt
75.91M	76.89M	83.93M	48.51M	28.99M
	Total Liabilities
226.56M	204.26M	194.25M	192.19M	199.38M
	Stockholders Equity
101.13M	75.26M	81.61M	169.25M	201.00M
Cash Flow		Free Cash Flow
5.50M	6.19M	-30.99M	473.00K	31.01M
	Operating Cash Flow
65.15M	50.19M	7.26M	72.25M	66.98M
	Investing Cash Flow
-57.02M	-43.99M	-38.26M	-71.77M	-34.25M
	Financing Cash Flow
2.65M	-2.23M	1.12M	-36.89M	-4.07M

Sierra Metals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.10
• 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:SMT, the sentiment is Positive. The current price of 1.1 is above the 20-day moving average (MA) of 0.89, above the 50-day MA of 0.84, and above the 200-day MA of 0.79, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 72.13 is Negative, neither overbought nor oversold. The STOCH value of 91.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SMT.

Sierra Metals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMT	71 Outperform	$233.30M	10.01	21.30%	―	17.12%	―
LUN	64 Neutral	$8.88B	25.63	0.24%	2.98%	-2.71%	-188.94%
HBM	64 Neutral	C$4.06B	36.89	3.30%	0.19%	19.70%	9.24%
FM	58 Neutral	C$15.50B	81.53	1.22%	―	-13.79%	―
CS	56 Neutral	$5.20B	45.17	2.90%	―	20.74%	―
TLO	56 Neutral	C$88.80M	―	-0.96%	―	―	7.41%
Sector *	49 Neutral	$1.96B	-1.54	-21.88%	3.78%	0.55%	-26.98%

Sierra Metals Corporate Events

Sierra Metals Agrees to All-Cash Takeover Bid by Alpayana

Sierra Metals has reached an agreement in principle with Alpayana for an all-cash take-over bid, where Alpayana Canada will acquire all common shares of Sierra Metals for CDN $1.15 per share. The bid has the unanimous support of Sierra Metals’ Board of Directors and a fairness opinion from BMO Capital Markets. The agreement is expected to be finalized by April 30, 2025, with an extended deadline for shareholders to tender their shares by May 12, 2025. This acquisition could significantly impact Sierra Metals’ operations and market positioning, offering potential growth and stability for stakeholders.

Spark’s Take on TSE:SMT Stock

According to Spark, TipRanks’ AI Analyst, TSE:SMT is a Outperform.

Sierra Metals shows strong financial performance, with notable profitability and operational efficiency improvements. Despite high leverage and historical volatility, the company’s strategic advancements and positive earnings outcomes support a favorable outlook. Technical indicators show a positive trend, and valuation metrics suggest the stock is undervalued, offering potential upside. Earnings call insights reinforce positive growth prospects, though high capital expenditures and takeover bid uncertainties present challenges. Overall, the stock holds a positive outlook with room for growth, tempered by the need to manage financial risks and uncertainties.

To see Spark’s full report on TSE:SMT stock, click here.

Sierra Metals Announces Strong Q1 2025 Production Results

Sierra Metals reported a strong start to 2025 with an 18% increase in consolidated ore throughput and a 14% rise in copper production compared to the previous year. The Yauricocha mine in Peru saw a significant boost in copper output, more than doubling due to higher throughput and improved grades, while the Bolivar mine in Mexico experienced declines in production due to lower grades and weather-related disruptions. These results reflect successful operational improvements and position the company for continued growth and value delivery to shareholders.

Spark’s Take on TSE:SMT Stock

According to Spark, TipRanks’ AI Analyst, TSE:SMT is a Outperform.

Sierra Metals’ overall score reflects its strong financial performance, particularly in profitability and operational efficiency, tempered by historical volatility and high leverage. Technical indicators suggest a positive trend, while valuation metrics indicate the stock is undervalued, providing potential upside. Despite uncertainties from a takeover bid, strategic advancements and positive earnings outcomes support a favorable outlook.

To see Spark’s full report on TSE:SMT stock, click here.

Sierra Metals Urges Shareholders to Reject Amended Hostile Bid

Sierra Metals has reiterated its recommendation for shareholders to reject Alpayana’s amended hostile takeover bid, which has increased the offer price from C$0.85 to C$1.11 per share. The board of directors believes the revised offer still undervalues the company, citing strong financial performance and potential for greater value in its assets. The company has addressed Alpayana’s claims regarding its financial guidance and potential financing, emphasizing its improved balance sheet and significant operational turnaround.

Spark’s Take on TSE:SMT Stock

According to Spark, TipRanks’ AI Analyst, TSE:SMT is a Neutral.

Sierra Metals’ overall score reflects its strong financial performance, particularly in profitability and operational efficiency, though tempered by historical volatility and high leverage. Technical indicators suggest a neutral market position, while valuation metrics indicate the stock is undervalued, providing potential upside. The lack of dividend yield may deter income investors. Despite uncertainties from a takeover bid, the company’s strategic advancements and positive earnings outcomes support a favorable outlook.

To see Spark’s full report on TSE:SMT stock, click here.

Sierra Metals Responds to Alpayana’s Revised Takeover Bid

Sierra Metals Inc. has acknowledged a press release from Alpayana S.A.C. regarding an intention to revise its unsolicited all-cash takeover bid for Sierra’s common shares. The company advises its shareholders to take no action until the Board of Directors provides a recommendation on the amended bid. Sierra remains committed to its long-term strategy of delivering superior value and is actively exploring additional alternatives through negotiations with third parties.

Sierra Metals Achieves Record Revenue and Growth in 2024

Sierra Metals reported a record revenue of $272 million for the full year 2024, marking a 19% increase over the previous year. The company also achieved an adjusted EBITDA of $74.2 million, a 40% increase from 2023, and exceeded its annual production guidance. The fourth quarter was particularly strong, with record revenue of $81 million and a 19% increase in throughput rates. These results reflect Sierra Metals’ improved operational efficiency and cost management, positioning the company for continued growth and enhanced shareholder value in 2025.

Sierra Metals Reports Record Growth and Rejects Hostile Takeover Bid

Sierra Metals has reported record production levels and significant financial growth, with an expected 85% increase in EBITDA in 2025 compared to 2024. The company has rejected a hostile takeover bid, emphasizing its strong financial position and future growth potential, supported by strategic investments and operational enhancements. The company continues to focus on exploration to extend mine life and maintain its growth trajectory, while refinancing efforts have improved its financial flexibility.

Sierra Metals Reschedules Q4 and FY 2024 Financial Results Release

Sierra Metals announced a change in the release date for its Q4 2024 and fiscal year 2024 financial and operating results, now scheduled for March 26, 2026, after market hours. The company will hold a conference call and webcast on March 27, 2025, to discuss these results. This announcement is significant for stakeholders as it reflects the company’s ongoing operational activities and its commitment to transparency in financial reporting, which could impact investor confidence and market positioning.

Sierra Metals’ Subsidiary Reports Q4 2024 Financial Results

Sierra Metals’ subsidiary, Sociedad Minera Corona, reported its financial results for the fourth quarter of 2024, reflecting the company’s ongoing efforts to enhance its mining operations. The announcement underscores Sierra Metals’ strategic focus on expanding production and resource potential, which may strengthen its position in the mining industry and offer growth opportunities for stakeholders.