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Sprott (TSE:SII)
TSX:SII
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Sprott (SII) AI Stock Analysis

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TSE:SII

Sprott

(TSX:SII)

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Outperform 79 (OpenAI - Gpt-5.6Sol)
Rating:79Outperform
Price Target:
C$203.00
â–²(6.89% Upside)
Action:Reiterated
Date:08/10/26
The score is driven primarily by strong financial performance (high profitability, debt-free balance sheet, and high-quality cash flow). Offsetting factors are a mixed technical picture (negative MACD and price below the 100DMA) and a relatively rich valuation (P/E ~28.9 with a ~1.26% yield). Earnings call commentary was supportive on margins and product traction, but highlighted near-term AUM sensitivity to precious-metals market swings and outflows.
Positive Factors
Strong profitability and operating leverage
High profitability and significant adjusted EBITDA margin expansion indicate strong operating leverage in Sprott’s asset-management model. If higher AUM and newer products continue scaling, incremental management-fee revenue can translate efficiently into earnings and support durable cash generation.
Negative Factors
Material quarterly AUM contraction
AUM is the primary driver of recurring management fees, so a 15% quarterly decline can pressure revenue and profitability even when operating margins remain strong. The contraction highlights how quickly Sprott’s earnings base can weaken when underlying real-asset markets move against it.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and operating leverage
High profitability and significant adjusted EBITDA margin expansion indicate strong operating leverage in Sprott’s asset-management model. If higher AUM and newer products continue scaling, incremental management-fee revenue can translate efficiently into earnings and support durable cash generation.
Read all positive factors

Sprott (SII) vs. iShares MSCI Canada ETF (EWC)

Sprott Business Overview & Revenue Model

Company Description
Sprott Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides asset management, portfolio management, wealth management, fund management, and administrative and consulting services to its clients. It...
How the Company Makes Money
Sprott primarily makes money by earning fees for managing client assets and providing investment-related services. The largest and most recurring portion of revenue typically comes from management fees calculated as a percentage of assets under ma...

Sprott Earnings Call Summary

Earnings Call Date:Aug 05, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Positive
Despite a sharp, market-driven pullback in precious metals that caused meaningful AUM declines and redemptions in physical trusts, the company showed strong underlying financial momentum: substantial year‑over‑year average AUM growth, rising net income and adjusted EBITDA, widening margins, debt-free liquidity and rapid scaling of new ETF products (notably REXC). Critical materials and uranium were clear bright spots. Given the balance of durable operational and profitability gains against cyclical market headwinds, management frames the metals weakness as short-term and retains confidence in long-term secular demand.
Positive Updates
Strong Year-over-Year Average AUM Growth
Average AUM for the quarter was $63.9 billion, up $26.3 billion or 70% versus $37.6 billion a year ago; year-to-date average AUM was $66.6 billion, up $31.2 billion or 88% versus $35.4 billion a year ago.
Negative Updates
Significant Precious Metals Price Correction
Sprott gold declined 14.1% and silver fell 22% in the quarter, driven by commodity, currency and interest rate volatility and tighter global liquidity; this materially pressured related product valuations.
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Q2-2026 Updates
Negative
Strong Year-over-Year Average AUM Growth
Average AUM for the quarter was $63.9 billion, up $26.3 billion or 70% versus $37.6 billion a year ago; year-to-date average AUM was $66.6 billion, up $31.2 billion or 88% versus $35.4 billion a year ago.
Read all positive updates
Company Guidance
Management provided limited numeric forward guidance but outlined expectations and targets: they expect to close the fourth private lending fund in 2027 and continue opportunistic NCIB buybacks (more aggressive at lower prices); current AUM is $55.6B (down $9.5B Q/Q and 15% from $65.1B), average AUM was $63.9B for the quarter (up 70% YoY) and $66.6B YTD (up 88% YoY), with $0.4B net redemptions in Q2 and an $8.2B (16%) drop in physical trusts; ETF AUM fell ~10% while new ETF REXC hit $50M in 32 trading days (many funds breakeven near $25M); Q2 net income was $34.3M ($63.5M YTD), adjusted EBITDA was $50.8M for the quarter and $108.7M YTD with adjusted EBITDA margins expanding from 53% to 71%; Private Strategies AUM is $2B, the firm is debt-free with strong liquidity, and management expects secular upside for critical materials and further scaling benefits to drive profitability.

Sprott Financial Statement Overview

Summary
Strong overall fundamentals supported by high profitability (TTM net margin ~26.7%, EBIT margin ~36.7%), an exceptionally conservative balance sheet (no debt, rising equity, improving ROE ~28.4% TTM), and solid cash conversion (FCF ~0.99x net income). The key drawback is uneven multi-year revenue/margin variability consistent with market sensitivity.
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
88
Very Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue394.78M295.12M168.35M146.30M154.27M164.94M
Gross Profit303.51M269.82M80.82M64.17M66.62M78.48M
EBITDA147.73M95.70M74.32M57.19M31.36M50.90M
Net Income105.32M68.52M49.29M41.80M17.63M33.19M
Balance Sheet
Total Assets515.76M524.82M388.80M378.83M383.75M365.87M
Cash, Cash Equivalents and Short-Term Investments190.50M123.86M47.06M22.89M55.03M55.94M
Total Debt0.001.49M0.0024.24M54.44M29.77M
Total Liabilities123.58M158.25M65.15M73.13M106.48M74.65M
Stockholders Equity392.18M366.58M323.65M305.70M277.27M291.22M
Cash Flow
Free Cash Flow139.59M95.84M67.28M28.33M32.37M50.55M
Operating Cash Flow141.65M97.69M69.15M29.86M32.50M51.25M
Investing Cash Flow25.16M9.32M24.52M4.61M-23.49M-20.63M
Financing Cash Flow-47.48M-33.26M-57.17M-63.46M-3.90M-24.19M

Sprott Technical Analysis

Technical Analysis Sentiment
Positive
Last Price189.92
Price Trends
50DMA
163.36
Positive
100DMA
169.55
Positive
200DMA
169.80
Positive
Market Momentum
MACD
4.25
Positive
RSI
51.25
Neutral
STOCH
12.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SII, the sentiment is Positive. The current price of 189.92 is above the 20-day moving average (MA) of 177.33, above the 50-day MA of 163.36, and above the 200-day MA of 169.80, indicating a neutral trend. The MACD of 4.25 indicates Positive momentum. The RSI at 51.25 is Neutral, neither overbought nor oversold. The STOCH value of 12.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SII.

Sprott Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
C$4.50B32.6728.39%1.20%102.07%109.00%
78
Outperform
C$20.00B18.0512.91%2.64%19.92%20.90%
78
Outperform
C$107.12B27.1615.59%4.10%129.18%15.58%
74
Outperform
C$1.28B9.4611.40%2.57%10.08%33.25%
74
Outperform
C$8.21B11.895.25%0.36%1.85%-9.67%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
52
Neutral
C$433.26M22.547.95%10.46%-1.48%-47.10%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SII
Sprott
184.86
89.59
94.04%
TSE:IGM
IGM Financial
89.69
40.54
82.47%
TSE:AGF.B
AGF Management B NV
20.25
7.30
56.33%
TSE:FSZ
Fiera Capital A
4.13
-2.26
-35.36%
TSE:ONEX
ONEX Corporation
110.50
-13.38
-10.80%
TSE:BAM
Brookfield Asset Management Ltd. Class A
65.47
-9.91
-13.15%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 10, 2026