Sprott Inc. (NYSE: SII)

Sector: Financial Services Industry: Asset Management CIK: 0001512920
Market Cap 3.13 Bn
P/B 9.08
P/E 62.26
P/S 14.48
ROIC (Qtr) 15.51
Div Yield % 0.74
Rev 1y % (Qtr) 40.01
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

Investment thesis

Bull case

  • Operating cash flow of 72.68M provides strong 15.37x coverage of stock compensation 4.73M, indicating sustainable incentive practices.
  • Operating cash flow of 72.68M provides exceptional 50.47x coverage of interest expenses 1.44M, showing strong debt service capability.
  • Strong operating cash flow of 72.68M provides 3.96x coverage of SG&A expenses 18.37M, showing efficient operational cost management.
  • Robust free cash flow of 70.74M exceeds capital expenditure of 1.94M by 36.48x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 266.90M provides 4.06x coverage of working capital 65.73M, indicating strong operational backing.

Bear case

  • Operating cash flow of 72.68M provides thin coverage of dividend payments of (30.97M) with a -2.35 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 70.74M represents just -3.57x of debt issuance (19.81M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Long-term investments of 79.17M represent a high 3.72x of fixed assets 21.26M, indicating potential overexposure to financial assets versus operational capabilities.
  • Retained earnings of (51.86M) provide limited buffer against comprehensive income items of (87.02M), which is 0.60x, indicating elevated exposure to market risks.
  • Operating cash flow of 72.68M is outpaced by equity issuance of (3.57M) (-20.34 ratio), indicating concerning reliance on equity markets for funding operations.

Segments [axis] Breakdown of Revenue (2024)

Segments [axis] Breakdown of Revenue (2024)

Peer comparison

Companies in the Asset Management
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BLK BlackRock, Inc. 199.59 Bn 85.40 21.98 15.04 Bn
2 BN BROOKFIELD Corp /ON/ 103.94 Bn 31.52 5.64 262.97 Bn
3 AMP Ameriprise Financial Inc 88.69 Bn 55.02 7.20 5.89 Bn
4 BX Blackstone Inc. 88.51 Bn 49.39 10.93 12.89 Bn
5 KKR KKR & Co. Inc. 55.86 Bn 28.33 13.23 53.12 Bn
6 STT State Street Corp 46.52 Bn 21.77 3.91 34.72 Bn
7 NTRS Northern Trust Corp 34.14 Bn 33.31 6.71 15.64 Bn
8 RJF Raymond James Financial Inc 32.89 Bn 37.63 4.14 5.10 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 6.56 0.94
EV to Cash from Ops. EV/CFO 42.05 41.10
EV to Debt EV to Debt 0.00 15.28
EV to EBIT EV/EBIT 43.78 23.47
EV to EBITDA EV/EBITDA 42.05 47.80
EV to Free Cash Flow [EV/FCF] EV/FCF 43.20 38.62
EV to Market Cap EV to Market Cap 0.98 7.81
EV to Revenue EV/Rev 14.13 27.38
Price to Book Value [P/B] P/B 9.08 2.34
Price to Earnings [P/E] P/E 62.26 11.81
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.62 4.66
Dividend Payout Ratio % Div Payout % (Qtr) 46.20 -5.56
Dividend per Basic Share Div per Share (Qtr) 0.90 1.73
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 32.82 49.83
Interest Coverage Int. cover (Qtr) 48.48 25.16
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 1.07 -35.10
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 83.47 15.43
Dividend Growth (1y) % Div 1y % (Qtr) -10.00 1.65
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 3.21 -90.82
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 1.58 35.24
EBIT Growth (1y) % EBIT 1y % (Qtr) 4.73 -22.13
EBT Growth (1y) % EBT 1y % (Qtr) 7.95 -163.05
EPS Growth (1y) % EPS 1y % (Qtr) 4.28 -20.61
FCF Growth (1y) % FCF 1y % (Qtr) 36.33 220.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -1.16 -53.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.46 0.22
Cash Payout Ratio Cash Payout (Qtr) 0.42 0.36
Cash Ratio Cash Ratio (Qtr) 1.38 0.38
Current Ratio Curr Ratio (Qtr) 2.14 0.86
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.70
Interest Cover Ratio Int Coverage (Qtr) 48.48 25.16
Times Interest Earned Times Interest Earned (Qtr) 48.48 25.16
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 33.40 -114.76
EBIT Margin % EBIT Margin % (Qtr) 32.28 -127.24
EBT Margin % EBT Margin % (Qtr) 31.62 -150.97
Gross Margin % Gross Margin % (Qtr) 42.10 67.88
Net Profit Margin % Net Margin % (Qtr) 23.30 -148.68