Sandstorm Gold (SSL) AI Stock Analysis

• Market Cap: $3.37B
• Dividend Yield: 0.68%
• Average Volume (3M): 705.65K
• Price to Earnings (P/E): 84.1
• Beta (1Y): 1.14
• Revenue Growth: 6.23%
• EPS Growth: 36.40%
• Country: CA
• Employees: 23
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Gold
• EPS (TTM): 0.06
• Shares Outstanding: 293,475,250
• 10 Day Avg. Volume: 612,544
• 30 Day Avg. Volume: 705,650
• PEG Ratio: 0.65
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.98
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 3.91
• Enterprise Value/Gross Profit: 26.24
• Enterprise Value/Ebitda: 5.34
• 1Y Price Target: $13.61
• Price Target Upside: 12.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 73 Outperform
• Price Target: C$13.50 ▲( 11.29% Upside)

Sandstorm Gold's overall score reflects strong financial performance, supported by robust profitability and cash flow management. Technical indicators show positive momentum, although high valuation points to potential overvaluation. Recent earnings call and corporate events provide a positive outlook with record revenue and strategic initiatives. However, challenges in production and high P/E ratio warrant cautious optimism.

Positive Factors

Debt Management

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

Growth Potential

Sandstorm increased its long-term production forecast to ~150koz GEOs in 2030, indicating strong future growth potential.

Revenue

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

Negative Factors

Earnings

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

Leverage

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

Production

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.

Sandstorm Gold Business Overview & Revenue Model

Company Description

Sandstorm Gold Ltd. is a gold streaming and royalty company headquartered in Vancouver, Canada. Operating within the mining sector, Sandstorm Gold focuses on acquiring gold and other precious metal purchase agreements, known as streams, as well as royalty agreements from companies that have advanced stage development projects or operating mines. These agreements provide Sandstorm Gold with the right to purchase a percentage of gold production or revenue from these mines at a fixed price, offering a diversified and less risky exposure to the gold market.

How the Company Makes Money

Sandstorm Gold generates revenue primarily through its streaming and royalty agreements. In a streaming agreement, Sandstorm pays upfront to mining companies for the right to purchase a certain percentage of the gold or other metals produced by the mine at a predetermined price, which is typically below the market rate. This allows Sandstorm to benefit from the difference between the market price and the purchase price. Royalties, on the other hand, provide Sandstorm with a percentage of revenue or production from a mine, without the need to purchase the physical product. These revenue streams are typically long-term and provide Sandstorm with consistent cash flow. The company's earnings are also influenced by the price of gold and other precious metals, the production levels of the mines they have agreements with, and any new streaming and royalty agreements they enter into. Strategic partnerships with mining companies and a diverse portfolio of agreements are significant factors that contribute to Sandstorm's earnings.

Sandstorm Gold Financial Statement Overview

Summary

Sandstorm Gold's financial statements exhibit strong profitability, stability, and cash flow management. The company is efficiently managing operations with high margins and consistent revenue growth. While the balance sheet is stable, there is potential for improving asset utilization and enhancing returns on equity. The cash flow statements highlight solid free cash flow growth and efficient cash conversion, underpinning the company's financial health. Overall, Sandstorm Gold is well-positioned to capitalize on growth opportunities within the gold industry.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
183.54M	176.28M	179.64M	148.73M	114.86M	93.03M
	Gross Profit
104.68M	95.98M	150.81M	65.59M	62.31M	45.85M
	EBIT
94.79M	71.03M	136.43M	41.95M	43.81M	31.77M
	EBITDA
132.16M	126.87M	162.35M	102.19M	83.17M	59.99M
	Net Income Common Stockholders
28.99M	14.29M	41.72M	78.36M	27.62M	13.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.70M	11.29M	33.40M	10.80M	21.17M	115.63M
	Total Assets
1.82B	1.85B	1.93B	1.97B	620.86M	649.92M
	Total Debt
340.00M	355.00M	435.00M	499.55M	2.58M	2.87M
	Net Debt
336.48M	350.61M	430.00M	492.52M	-13.59M	-110.91M
	Total Liabilities
391.82M	400.84M	477.44M	533.37M	28.22M	11.78M
	Stockholders Equity
1.41B	1.43B	1.43B	1.41B	592.64M	638.14M
Cash Flow		Free Cash Flow
134.04M	122.38M	131.81M	-513.87M	-71.56M	62.14M
	Operating Cash Flow
143.71M	135.38M	152.75M	106.92M	81.14M	65.62M
	Investing Cash Flow
14.63M	10.94M	-22.18M	-612.67M	-143.91M	33.68M
	Financing Cash Flow
-157.78M	-146.74M	-131.93M	497.56M	-34.22M	7.69M

Sandstorm Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.13
• 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:SSL, the sentiment is Positive. The current price of 12.13 is above the 20-day moving average (MA) of 11.72, above the 50-day MA of 10.91, and above the 200-day MA of 8.83, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 60.94 is Neutral, neither overbought nor oversold. The STOCH value of 59.70 is Neutral, 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	79 Outperform	C$365.23M	122.48	4.61%	―	19.40%	-6.88%
OR	74 Outperform	$6.12B	139.03	2.50%	0.79%	12.78%	―
SSL	73 Outperform	$3.37B	84.09	2.05%	0.68%	6.23%	36.40%
ORE	73 Outperform	C$567.86M	5.76	25.43%	―	22.51%	56.77%
ELE	72 Outperform	C$346.53M	116.10	2.36%	―	109.11%	―
Sector *	50 Neutral	$2.00B	-1.02	-21.34%	3.70%	2.00%	-30.65%
AMRQ	41 Neutral	C$1.16B	―	-11.37%	―	―	-2270.97%

Sandstorm Gold Corporate Events

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.

Sandstorm Gold Achieves Record Revenue and Strategic Share Buybacks in Q1 2025

Sandstorm Gold Royalties reported a strong first quarter in 2025, with record preliminary revenue of $50.1 million and total sales, royalties, and income from other interests reaching $54.1 million. The company also executed $19 million in share buybacks, reflecting its strategic capital allocation approach to enhance shareholder value. The company plans to continue assessing its capital allocation strategy, focusing on further share purchases and debt repayment depending on market conditions. This financial performance underscores Sandstorm’s robust positioning in the precious metals industry and its commitment to maximizing shareholder returns.

Sandstorm Gold Royalties Announces Key Developments in Mining Portfolio

Sandstorm Gold Royalties has announced significant developments in its portfolio, highlighting Erdene Resource Development Corp.’s progress in the Bayan Khundii gold project in Mongolia, which is expected to commence gold production by mid-2025. Additionally, Lundin Gold Ltd. reported high-grade gold intercepts and new copper-gold mineralization at the Fruta del Norte mine in Ecuador, indicating potential for expanded resource estimates and increased production capabilities.

Sandstorm Gold Royalties Reports Significant Portfolio Growth

Sandstorm Gold Royalties has announced significant updates to its portfolio, particularly highlighting the growth in Mineral Reserves and Resources at the Fruta del Norte mine in Ecuador. The mine, operated by Lundin Gold, has achieved its largest reserve and resource estimate to date, with a 59% increase in Inferred Resources. This expansion is expected to positively impact Sandstorm’s financials, as the company holds a 0.9% net smelter returns royalty on the precious metals produced at the site.