Sandstorm Gold (SSL) AI Stock Analysis

• Market Cap: $3.23B
• Dividend Yield: 0.68%
• Average Volume (3M): 537.41K
• Price to Earnings (P/E): 167.2
• Beta (1Y): 1.16
• Revenue Growth: -0.35%
• EPS Growth: -65.11%
• Country: CA
• Employees: 23
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Gold
• EPS (TTM): 0.01
• Shares Outstanding: 293,475,250
• 10 Day Avg. Volume: 748,829
• 30 Day Avg. Volume: 537,415
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 11.36
• Price to Cash Flow (P/CF): 13.90
• P/FCF Ratio: 12.80
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 19.33
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $12.69
• Price Target Upside: 7.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

Sandstorm Gold exhibits strong operational efficiency and promising growth prospects, balanced by stagnant revenue and high leverage. Technical indicators point to upward momentum, but the high valuation requires cautious optimism. Recent corporate developments, including share buybacks and portfolio growth, add a positive outlook for future performance.

Positive Factors

Diversification

Sandstorm stands out as a significantly diversified mid-cap royalty/streaming company with an organic growth profile, and trading at a discount.

Growth Potential

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

Share Repurchases

Sandstorm remains active on its NCIB, and with the company signaling an increasing rate of share repurchases.

Negative Factors

Earnings Performance

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

Near-Term Leverage

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

Operational Costs

SAND's average cash cost grew 39% YoY to $305/GEO, indicating rising operational costs.

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. 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 exhibits strong profitability and cash flow metrics, underpinned by a solid balance sheet structure. The company maintains a high equity ratio and a healthy debt profile, ensuring stability. Despite a slight decline in revenue, the overall financial health remains robust, with excellent cash flow conversion and profitability margins.

Income Statement

The company shows strong profitability with a substantial Gross Profit Margin of 51% and an EBIT Margin of 45.8% for TTM. However, there is a slight decrease in Total Revenue from last year's annual report, indicating a negative revenue growth rate. The Net Profit Margin is healthy at 20.4%, enhancing its profitability outlook.

Balance Sheet

Sandstorm Gold has a strong Equity Ratio of 76.2%, indicating high financial stability. The Debt-to-Equity Ratio is manageable at 0.26, reflecting a conservative capital structure. Return on Equity stands at 2.5%, which is relatively low, suggesting limited efficiency in generating returns on shareholder equity.

Cash Flow

The company demonstrates robust cash flow generation with a Free Cash Flow to Net Income Ratio of 3.44, highlighting substantial cash conversion. The Operating Cash Flow to Net Income Ratio is impressive at 3.89, indicating strong cash flow relative to earnings. However, Free Cash Flow Growth is slightly negative, requiring attention.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
179.64M	148.73M	114.86M	93.03M	89.43M
	Gross Profit
150.81M	65.59M	62.31M	45.85M	33.30M
	EBIT
136.43M	41.95M	43.81M	31.77M	19.80M
	EBITDA
162.35M	102.19M	83.17M	59.99M	56.31M
	Net Income Common Stockholders
41.72M	78.36M	27.62M	13.82M	16.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
33.40M	10.80M	21.17M	115.63M	17.77M
	Total Assets
1.93B	1.97B	620.86M	649.92M	623.17M
	Total Debt
435.00M	499.55M	2.58M	2.87M	48.41M
	Net Debt
430.00M	492.52M	-13.59M	-110.91M	41.44M
	Total Liabilities
477.44M	533.37M	28.22M	11.78M	52.28M
	Stockholders Equity
1.43B	1.41B	592.64M	638.14M	570.90M
Cash Flow		Free Cash Flow
131.81M	-513.87M	-71.56M	62.14M	-3.95M
	Operating Cash Flow
152.75M	106.92M	81.14M	65.62M	57.34M
	Investing Cash Flow
-22.18M	-612.67M	-143.91M	33.68M	-65.03M
	Financing Cash Flow
-131.93M	497.56M	-34.22M	7.69M	8.75M

Sandstorm Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 11.78 is above the 20-day moving average (MA) of 10.97, above the 50-day MA of 9.96, and above the 200-day MA of 8.50, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 68.12 is Neutral, neither overbought nor oversold. The STOCH value of 68.68 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
WDO	78 Outperform	C$2.53B	18.62	27.15%	―	67.54%	―
SSL	68 Neutral	$3.23B	167.17	1.00%	0.68%	-0.35%	-65.11%
Sector *	49 Neutral	$1.96B	-1.54	-21.88%	3.78%	0.55%	-26.98%

Sandstorm Gold Corporate Events

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.

Spark’s Take on TSE:SSL Stock

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

Sandstorm Gold’s strong operational efficiency and promising long-term growth prospects are balanced by concerns over stagnant revenue growth and high leverage. The stock’s upward trend provides some optimism, but its high valuation necessitates cautious optimism. Recent corporate developments add a positive outlook for future growth.

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

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.