Sprott Current Valuation vs. Return On Equity

SII Stock  CAD 61.57  0.46  0.74%   
Based on Sprott's profitability indicators, Sprott Inc is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Sprott's ability to earn profits and add value for shareholders. As of the 4th of December 2024, Operating Cash Flow Sales Ratio is likely to grow to 0.26, while Price To Sales Ratio is likely to drop 4.98. At this time, Sprott's Total Other Income Expense Net is very stable compared to the past year. As of the 4th of December 2024, Net Income is likely to grow to about 43.9 M, though Accumulated Other Comprehensive Income is likely to grow to (71.2 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.640.4386
Way Up
Slightly volatile
Operating Profit Margin0.370.2999
Fairly Up
Pretty Stable
For Sprott profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sprott to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sprott Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sprott's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sprott Inc over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Sprott's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sprott is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sprott's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Sprott Inc Return On Equity vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Sprott's current stock value. Our valuation model uses many indicators to compare Sprott value to that of its competitors to determine the firm's financial worth.
Sprott Inc is currently regarded number one company in current valuation category among its peers. It also is currently regarded as top stock in return on equity category among its peers . The ratio of Current Valuation to Return On Equity for Sprott Inc is about  10,637,093,247 . At this time, Sprott's Return On Equity is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Sprott by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Sprott's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Sprott Current Valuation vs. Competition

Sprott Inc is currently regarded number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is at this time estimated at about 14.75 Billion. Sprott retains roughly 1.52 Billion in current valuation claiming about 10% of equities under Financials industry.

Sprott Return On Equity vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Sprott

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
1.52 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Sprott

Return On Equity

 = 

Net Income

Total Equity

 = 
0.14
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Sprott Return On Equity Comparison

Sprott is currently under evaluation in return on equity category among its peers.

Sprott Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Sprott, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sprott will eventually generate negative long term returns. The profitability progress is the general direction of Sprott's change in net profit over the period of time. It can combine multiple indicators of Sprott, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-74.9 M-71.2 M
Operating Income43.9 M38.4 M
Income Before Tax50.3 M28.2 M
Total Other Income Expense Net6.4 M6.7 M
Net Income41.8 M43.9 M
Income Tax Expense8.5 M7.8 M
Net Income From Continuing Ops41.8 M43.9 M
Net Income Applicable To Common Shares20.3 M10.6 M
Net Interest Income-4.1 M-3.9 M
Interest Income4.9 M5.3 M
Change To Netincome23.5 M16.1 M
Net Income Per Share 1.66  1.62 
Income Quality 0.71  1.07 
Net Income Per E B T 0.83  0.66 

Sprott Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Sprott. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Sprott position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Sprott's important profitability drivers and their relationship over time.

Use Sprott in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Sprott position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sprott will appreciate offsetting losses from the drop in the long position's value.

Sprott Pair Trading

Sprott Inc Pair Trading Analysis

The ability to find closely correlated positions to Sprott could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Sprott when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Sprott - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Sprott Inc to buy it.
The correlation of Sprott is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Sprott moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Sprott Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Sprott can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Sprott position

In addition to having Sprott in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Automobiles and Trucks Thematic Idea Now

Automobiles and Trucks
Automobiles and Trucks Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Automobiles and Trucks theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Automobiles and Trucks Theme or any other thematic opportunities.
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When determining whether Sprott Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Sprott's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Sprott Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Sprott Inc Stock:
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You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
To fully project Sprott's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Sprott Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Sprott's income statement, its balance sheet, and the statement of cash flows.
Potential Sprott investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Sprott investors may work on each financial statement separately, they are all related. The changes in Sprott's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Sprott's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.