Sandstorm Gold (SSL) AI Stock Analysis

• Market Cap: $4.20B
• Dividend Yield: 0.55%
• Average Volume (3M): 780.45K
• Price to Earnings (P/E): 87.8
• Beta (1Y): 1.15
• Revenue Growth: 17.31%
• EPS Growth: 19.28%
• Country: CA
• Employees: 23
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 0.07
• Shares Outstanding: 293,157,960
• 10 Day Avg. Volume: 542,939
• 30 Day Avg. Volume: 780,449
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 23.38
• Enterprise Value/Gross Profit: 41.00
• Enterprise Value/Ebitda: 32.47
• 1Y Price Target: $15.29
• Price Target Upside: 5.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 77 Outperform
• Price Target: C$16.50 ▲(13.40% Upside)

Sandstorm Gold's overall score is driven by strong financial performance and positive earnings call sentiment, supported by bullish technical indicators. However, a high P/E ratio suggests potential overvaluation, and the stock's high RSI indicates caution due to overbought conditions. Corporate events further bolster the company's strategic positioning and growth prospects.

Positive Factors

Financial Strategy

The company has repurchased 3.1M common shares, which has increased its NAV per share and improved its valuation.

Revenue Growth

Sandstorm Gold recognized record total revenue of $50.1M, driven by a significant increase in the average realized gold price per ounce.

Shareholder Value

The transaction offers immediate and significant value to Sandstorm shareholders while maintaining their exposure to SAND's asset base through their ownership in Royal Gold.

Negative Factors

Earnings Performance

Sandstorm reported Q4/24 adjusted EPS that was a bit below consensus and estimate.

Gold Equivalent Ounces

The slight revenue decline is primarily due to lower attributable Gold Equivalent Ounces (GEOs) sold, though this effect was partially offset by a 23% YoY increase in the average gold price.

Leverage Concerns

For some investors, Sandstorm’s near-term elevated leverage and recent announcements potentially impacting its growth profile.

Sandstorm Gold Business Overview & Revenue Model

Company Description

Sandstorm Gold Ltd. operates as a gold royalty company. The company focuses on acquiring royalties and gold and other metals purchase agreements (streams) from companies that have advanced stage development projects or operating mines. It offers upfront payments for companies to acquire a stream or royalty and receives the right to purchase a percentage of a mine's production for the life of the mine at a fixed price per unit or at a fixed percentage of the spot price. The company has a portfolio of 230 streams and royalties. It primarily has operations in Canada, Mexico, the United States, Mongolia, Burkina Faso, Ecuador, South Africa, Ghana, Botswana, Cote D'Ivoire, Argentina, Brazil, Chile, Peru, Egypt, Ethiopia, Guyana, Paraguay, French Guiana, Turkey, Sweden, Fiji, and Australia. The company was formerly known as Sandstorm Resources Ltd. and changed its name to Sandstorm Gold Ltd. in February 2011. Sandstorm Gold Ltd. was incorporated in 2007 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Sandstorm Gold generates revenue primarily through its streaming and royalty agreements with mining companies. Under these agreements, Sandstorm pays an upfront cash payment to mining operators in exchange for the right to purchase a portion of the gold produced at a predetermined price, or to receive a percentage of the revenue from the sale of gold and other metals. This model allows Sandstorm to benefit from rising metal prices while limiting its exposure to the operational risks associated with mining. Key revenue streams include the sale of gold and metals acquired through its agreements, as well as income from long-term contracts with various mining partners. The company's strategic partnerships and investments in various operating mines globally further enhance its revenue potential, allowing it to capitalize on diverse mining operations.

Sandstorm Gold Financial Statement Overview

Summary

Sandstorm Gold demonstrates strong profitability with high margins and consistent revenue growth. The balance sheet is stable with a moderate debt-to-equity ratio, though there is room for improvement in ROE and asset utilization. Cash flows are robust, supporting the company's financial health.

Income Statement

Sandstorm Gold demonstrates strong profitability with a solid gross profit margin of 57.04% and a net profit margin of 15.80% in the TTM. The company has shown a consistent revenue growth trajectory, with a revenue increase of 4.11% in the TTM compared to the previous year. The EBIT margin of 51.65% and EBITDA margin of 72.00% further underscore the company's operational efficiency. However, the slight deceleration in revenue growth compared to prior years indicates potential market challenges.

Balance Sheet

The company's balance sheet is stable with a healthy equity ratio of 77.21%, reflecting a strong equity position. The debt-to-equity ratio is moderate at 0.24, indicating manageable leverage. ROE stands at 2.06% in the TTM, which could be improved to enhance shareholder returns. Overall, the balance sheet reflects financial stability but highlights room for optimization in asset utilization.

Cash Flow

Sandstorm Gold showcases a robust cash flow position with a significant operating cash flow to net income ratio of 4.96, indicating efficient cash generation relative to net earnings. The free cash flow to net income ratio is also strong at 4.62, suggesting effective free cash flow management. The company has achieved a healthy free cash flow growth rate of 9.56% in the TTM, reflecting strong cash flow generation capabilities. The overall cash flow performance is commendable with sustainable growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	176.28M	179.64M	148.73M	114.86M	93.03M
Gross Profit	95.98M	82.62M	65.59M	62.31M	45.85M
EBITDA	126.87M	162.35M	102.19M	83.17M	59.99M
Net Income	14.29M	41.72M	78.36M	27.62M	13.82M
Balance Sheet
Total Assets	1.85B	1.93B	1.97B	620.86M	649.92M
Cash, Cash Equivalents and Short-Term Investments	11.29M	33.40M	10.80M	21.17M	115.63M
Total Debt	355.00M	435.00M	499.55M	2.58M	2.87M
Total Liabilities	400.84M	477.44M	533.37M	28.22M	11.78M
Stockholders Equity	1.43B	1.43B	1.41B	592.64M	638.14M
Cash Flow
Free Cash Flow	122.38M	131.81M	-513.87M	-71.56M	62.14M
Operating Cash Flow	135.38M	152.75M	106.92M	81.14M	65.62M
Investing Cash Flow	10.94M	-22.18M	-612.67M	-143.91M	33.68M
Financing Cash Flow	-146.74M	-131.93M	497.56M	-34.22M	7.69M

Sandstorm Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.55
• 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:SSL, the sentiment is Positive. The current price of 14.55 is above the 20-day moving average (MA) of 13.34, above the 50-day MA of 13.01, and above the 200-day MA of 10.25, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 77.11 is Negative, neither overbought nor oversold. The STOCH value of 91.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SSL.

Sandstorm Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OGN	82 Outperform	C$105.66M	23.06	5.89%	―	33.96%	38.35%
SSL	77 Outperform	$4.20B	87.81	2.41%	0.55%	17.31%	19.28%
ORE	71 Outperform	C$687.47M	6.13	25.43%	―	22.51%	56.77%
ELE	71 Outperform	C$491.53M	81.63	2.36%	―	109.11%	―
Sector *	61 Neutral	$9.92B	5.61	1.58%	3.19%	3.03%	-41.96%
OR	―	$5.75B	73.04	6.27%	0.63%	―	―
AMRQ	41 Neutral	C$626.67M	―	-11.37%	―	―	-140.45%

Sandstorm Gold Corporate Events

Sandstorm Gold Royalties Backs Royal Gold’s Kansanshi Acquisition

Sandstorm Gold Royalties supports Royal Gold Inc.’s acquisition of a gold stream on the Kansanshi copper-gold mine in Zambia for $1 billion. This acquisition is expected to enhance Sandstorm’s portfolio by adding 35,000 to 40,000 ounces of gold per year over the next decade, benefiting shareholders through exposure to larger acquisitions and cash-flowing streams from long-life mines.

The most recent analyst rating on (TSE:SSL) stock is a Hold with a C$13.25 price target. To see the full list of analyst forecasts on Sandstorm Gold stock, see the TSE:SSL Stock Forecast page.

Sandstorm Gold Royalties Achieves Record Revenue in Q2 2025

Sandstorm Gold Royalties reported record preliminary revenue of $51.4 million for the second quarter of 2025, selling approximately 15,100 attributable gold equivalent ounces. This marks a significant increase from the previous year, highlighting the company’s strong operational performance and improved cash operating margins. The company’s financial results will be released on August 7, 2025, with a conference call scheduled for the following day to discuss the details. This announcement underscores Sandstorm’s robust position in the precious metals market and its ability to generate substantial cash flow, which is crucial for stakeholders and investors.

The most recent analyst rating on (TSE:SSL) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Sandstorm Gold stock, see the TSE:SSL Stock Forecast page.

Sandstorm Gold Royalties Announces 2025 Quarterly Dividend

Sandstorm Gold Royalties has announced a quarterly cash dividend of C$0.02 per common share for 2025, to be paid on July 25, 2025, to shareholders of record as of July 15, 2025. The dividend is classified as an ‘eligible dividend’ under Canadian tax law. While the company plans to review its dividend program regularly, future dividends will depend on various factors, including financial position and market conditions. This announcement reflects Sandstorm’s ongoing commitment to returning value to its shareholders while maintaining flexibility in its financial strategy.

The most recent analyst rating on (TSE:SSL) stock is a Buy with a C$10.25 price target. To see the full list of analyst forecasts on Sandstorm Gold stock, see the TSE:SSL Stock Forecast page.

Sandstorm Gold Royalties Reports Major Exploration Advances

Sandstorm Gold Royalties announced significant exploration developments within its portfolio, highlighting a new gold-silver discovery by First Majestic Silver Corp. at the Santa Elena property in Mexico. This discovery, known as the Santo Niño vein, adds substantial potential to the Santa Elena district, where Sandstorm holds a gold stream. Additionally, Lundin Gold Ltd. has expanded its drilling program at the Fruta del Norte mine in Ecuador, aiming to enhance the mine’s long-term plan with promising high-grade results. These developments underscore Sandstorm’s strategic positioning in the mining sector, enhancing its growth prospects and potential returns for stakeholders.

The most recent analyst rating on (TSE:SSL) stock is a Buy with a C$10.25 price target. To see the full list of analyst forecasts on Sandstorm Gold stock, see the TSE:SSL Stock Forecast page.

Sandstorm Gold Receives Favorable Proxy Advisor Recommendations for Shareholder Meeting

Sandstorm Gold Royalties announced that Institutional Shareholder Services Inc. (ISS) and Glass, Lewis & Co. LLC have recommended that shareholders vote in favor of all management proposals at the upcoming Annual General and Special Meeting. This includes proposals related to amendments to the company’s share-based compensation program. The favorable recommendations from these leading proxy advisors are expected to positively impact the company’s governance and shareholder relations.

The most recent analyst rating on (TSE:SSL) stock is a Buy with a C$10.25 price target. To see the full list of analyst forecasts on Sandstorm Gold stock, see the TSE:SSL Stock Forecast page.

Sandstorm Gold Clarifies Shareholder Meeting Amendments Amid ISS Misinterpretation

Sandstorm Gold Royalties has issued clarifying amendments to its 2025 shareholder meeting materials following a misinterpretation by Institutional Shareholder Services Inc. (ISS) regarding the company’s share-based compensation program. The amendments aim to ensure accurate interpretation of the proposed changes and align executive compensation with shareholder interests. The Toronto Stock Exchange and the company’s Board of Directors have approved these amendments, which set a fixed maximum limit of 6.0% for share issuances under the Share Plans, countering ISS’s recommendation against the proposals.

The most recent analyst rating on (TSE:SSL) stock is a Buy with a C$10.25 price target. To see the full list of analyst forecasts on Sandstorm Gold stock, see the TSE:SSL Stock Forecast page.