Sherritt International (S) AI Stock Analysis

• Market Cap: C$74.44M
• Dividend Yield: N/A
• Average Volume (3M): 196.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: -12.97%
• EPS Growth: 38.42%
• Country: CA
• Employees: 6,963
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Industrial Materials
• EPS (TTM): -0.06
• Shares Outstanding: 496,288,670
• 10 Day Avg. Volume: 112,984
• 30 Day Avg. Volume: 196,342
• PEG Ratio: N/A
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$0.25
• Price Target Upside: 78.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

Sherritt International's overall stock score is primarily influenced by its financial performance challenges, including negative profitability and cash flow metrics. Technical analysis is mixed, with indicators suggesting potential resistance. Valuation is unfavorable with a negative P/E ratio. The earnings call provides some optimism due to strategic improvements and expected production increases, but operational challenges persist.

Sherritt International Business Overview & Revenue Model

Company Description

Sherritt International Corporation engages in the mining, refining, and sale of nickel and cobalt from lateritic sources primarily in Canada and Cuba. It operates through Moa Joint Venture and Fort Site, Metals Other, Oil and Gas, Power, and Technologies segments. The company produces and sells agriculture fertilizers in Western Canada; and provides additional fertilizer storage and administrative facilities in Fort Saskatchewan, Alberta, and Canada. It also explores for and produces oil and gas primarily from offshore reservoirs located in the north coast of Cuba. In addition, the company generates and sells electricity from natural gas and steam from the waste heat with a generating capacity of 506 megawatts, as well as provides technical support, process optimization, and technology development services. It operates two combined cycle plants at Varadero and Boca de Jaruco. The company was incorporated in 1927 and is based in Toronto, Canada.

How the Company Makes Money

Sherritt International makes money primarily through the extraction, processing, and sale of nickel and cobalt, which are its key revenue streams. The company operates significant mining and refining operations in Canada, Cuba, and Madagascar, where it extracts these metals and processes them for sale to various industrial clients. Additionally, Sherritt generates revenue from its oil and gas exploration and production activities, primarily based in Cuba, where it extracts and sells oil. The company also operates a power generation business in Cuba, where it generates and sells electricity. Strategic partnerships, particularly with the Cuban government, play a crucial role in Sherritt's operations and revenue generation. These partnerships enable Sherritt to access key resources and markets, thereby bolstering its earnings potential.

Sherritt International Financial Statement Overview

Summary

The financial performance of Sherritt International is challenging, with a low gross profit margin of 4.04% and a significantly negative net profit margin of -43.3%. Revenue growth is modest, but negative EBIT and EBITDA margins indicate operational inefficiencies. The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.70, but the deeply negative ROE reflects lack of profitability. Cash flow concerns are evident with negative free cash flow and a low operating cash flow to net income ratio.

Income Statement

The Income Statement reveals a challenging financial situation. The TTM Gross Profit Margin is low at 4.04%, and the Net Profit Margin is significantly negative at -43.3%, indicating difficulty in generating profits from revenues. Revenue growth from the previous fiscal year is a modest 6.04%, but EBIT and EBITDA margins are both negative, showing operational inefficiencies.

Balance Sheet

The Balance Sheet shows moderate financial stability. The Debt-to-Equity Ratio is 0.70, which is relatively reasonable but indicates moderate leverage. The Return on Equity (ROE) is deeply negative, reflecting the company's lack of profitability. The Equity Ratio stands at 42.21%, showing a balanced but slightly leveraged capital structure.

Cash Flow

Cash Flow analysis highlights financial strain. The TTM Free Cash Flow is negative, with a concerning Operating Cash Flow to Net Income Ratio of 0.52, indicating insufficient cash generation relative to net losses. Free Cash Flow growth is negative, further suggesting liquidity challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	158.80M	223.30M	178.80M	110.20M	119.80M
Gross Profit	20.30M	-42.20M	16.10M	-30.80M	-38.10M
EBITDA	-18.60M	-12.30M	135.50M	-19.10M	7.30M
Net Income	-72.80M	-64.60M	63.50M	-13.40M	-85.70M
Balance Sheet
Total Assets	1.38B	1.39B	1.56B	1.40B	1.35B
Cash, Cash Equivalents and Short-Term Investments	34.30M	119.10M	123.90M	145.60M	167.40M
Total Debt	382.30M	366.60M	350.90M	444.50M	441.40M
Total Liabilities	785.40M	777.00M	860.70M	813.00M	745.40M
Stockholders Equity	597.40M	613.60M	694.90M	585.00M	606.80M
Cash Flow
Free Cash Flow	-32.90M	6.00M	60.20M	-15.10M	28.60M
Operating Cash Flow	-26.10M	27.30M	88.70M	-4.40M	40.70M
Investing Cash Flow	36.10M	-18.40M	-23.40M	-9.90M	-11.40M
Financing Cash Flow	7.10M	-11.70M	-93.30M	-6.90M	-26.40M

Sherritt International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:S, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.15, and below the 200-day MA of 0.16, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.96 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:S.

Sherritt International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
S	52 Neutral	C$74.44M	―	-12.73%	―	-12.97%	38.42%
Sector *	44 Neutral	C$972.32M	-6.68	-13.73%	2.45%	17.55%	-32.57%
NBM	42 Neutral	C$59.85M	―	-242.00%	―	―	-98.97%
FPX	40 Underperform	C$77.16M	―	-4.19%	―	―	48.82%
WHY	39 Underperform	C$47.28M	―		―	―	-24.04%
HPQ	26 Underperform	C$69.31M	―	-399.98%	―	―	7.43%
AMLIF	―	$59.48M	―	-15.65%	―	―	―

Sherritt International Corporate Events

Sherritt International to Release Q2 2025 Results and Host Conference Call

Sherritt International has announced that it will release its second quarter 2025 financial results on July 29, 2025, followed by a conference call and webcast on July 30, 2025, to discuss its financial and operational performance. This announcement is significant for stakeholders as it provides insights into the company’s ongoing expansion efforts and its impact on the energy and mining sectors, particularly in the context of the energy transition.

The most recent analyst rating on (TSE:S) stock is a Hold with a C$0.25 price target. To see the full list of analyst forecasts on Sherritt International stock, see the TSE:S Stock Forecast page.

Sherritt International Announces Board Appointments and Governance Updates

Sherritt International Corporation announced the results of its 2025 Annual and Special Meeting of Shareholders, including the election of directors and key board appointments. John Ewing was appointed to the Board of Directors, with Leon Binedell named Executive Chairman and Shelley Brown as Lead Independent Director. The company is committed to board renewal and governance improvements, aiming to enhance operational efficiency and stakeholder value. The reconstitution of board committees reflects a strategic alignment with the expertise of new directors, and major shareholders have expressed support for Sherritt’s ongoing initiatives.

The most recent analyst rating on (TSE:S) stock is a Hold with a C$0.25 price target. To see the full list of analyst forecasts on Sherritt International stock, see the TSE:S Stock Forecast page.

Sherritt International Announces Chairman’s Retirement Amid Strategic Growth

Sherritt International Corporation announced the retirement of its Chairman, Sir Richard Lapthorne, effective immediately. During his tenure since 2019, the company underwent major transformations, including debt restructurings and strategic investments, positioning itself as a reliable supplier of critical minerals. His leadership has left Sherritt well-prepared for future growth and operational efficiency, with the company expressing gratitude for his contributions.

The most recent analyst rating on (TSE:S) stock is a Hold with a C$0.25 price target. To see the full list of analyst forecasts on Sherritt International stock, see the TSE:S Stock Forecast page.

Sherritt International Receives Proxy Advisor Support Amid Shareholder Challenge

Sherritt International Corporation has received a recommendation from Institutional Shareholder Services Inc. (ISS) for shareholders to vote in favor of all resolutions and director nominees at the upcoming Annual and Special Meeting. This endorsement follows a similar recommendation from Glass, Lewis & Co. LLC, highlighting the progress made under Sherritt’s current board and management. The company is facing a challenge from SC2 Inc., which seeks to replace the incumbent directors to benefit its affiliate, Seablinc Canada Inc., a supplier to Sherritt’s Moa Joint Venture. Sherritt warns that SC2’s actions could jeopardize the company’s financial stability and strategic goals, urging shareholders to support the board’s resolutions to protect the corporation’s future.

The most recent analyst rating on (TSE:S) stock is a Hold with a C$0.25 price target. To see the full list of analyst forecasts on Sherritt International stock, see the TSE:S Stock Forecast page.

Sherritt International Warns Shareholders of Potential Threat from SC2 Inc.

Sherritt International has issued a letter to its shareholders warning of a potential threat from SC2 Inc., an affiliate of Seablinc Canada Inc., which is attempting to gain control of Sherritt without a credible plan. The company highlights the conflict of interest posed by SC2, whose actions seem to prioritize Seablinc’s supplier agreements over the interests of Sherritt’s shareholders. Sherritt’s Board urges shareholders to vote in favor of all resolutions to protect the company’s future and maintain its strategic progress.

The most recent analyst rating on (TSE:S) stock is a Hold with a C$0.25 price target. To see the full list of analyst forecasts on Sherritt International stock, see the TSE:S Stock Forecast page.

Sherritt International Strengthens Capital Structure and Advances Moa JV Expansion

Sherritt International reported its first quarter 2025 results, highlighting strategic initiatives that enhance its capital structure and operational capacity. The company reduced its debt obligations, extended debt maturity, and commenced phase two of its Moa JV expansion, which will increase production capacity and profitability. Despite challenges in Cuba due to U.S. sanctions, Sherritt remains optimistic about stronger operating results in the latter half of the year, supported by its sound liquidity management and low net direct cash costs.

The most recent analyst rating on (TSE:S) stock is a Hold with a C$0.25 price target. To see the full list of analyst forecasts on Sherritt International stock, see the TSE:S Stock Forecast page.

Sherritt International Welcomes Richard Moat to Board of Directors

Sherritt International Corporation has appointed Richard Moat to its Board of Directors, succeeding Steven Goldman. This appointment is part of an investor rights agreement with a significant shareholder. Richard Moat brings extensive experience in leading business transformations, having previously held executive roles at Vantiva S.A. and Eir Limited. His strategic leadership is expected to benefit Sherritt as it continues to focus on its core operations in nickel and cobalt mining and energy production in Cuba.

Sherritt International Strengthens Capital Structure with Successful Debt Restructuring

Sherritt International has successfully closed a transaction to extend its debt maturities and strengthen its capital structure by exchanging existing notes for amended ones due in 2031, reducing its outstanding debt by $42 million and annual interest expenses by $3 million. Despite a legal challenge from SC2 Inc. regarding the listing of common shares, Sherritt remains confident in its strategic position to handle market volatility and achieve long-term goals, while continuing to create value for stakeholders.