Sierra Madre Gold & Silver Ltd. (SM) AI Stock Analysis

Sierra Madre Gold & Silver Ltd.

(TSXV:SM)

Select Model

Rating:71Outperform

Price Target:CAD 1.50▲(20.00% Upside)

Action:reiterated

Date:10/07/26

The overall score is driven primarily by the company’s rapid ramp to profitable production, strong margins, and very conservative balance sheet, partly offset by ongoing heavy investment and negative free cash flow, high share-price volatility, and a valuation multiple that already prices in optimistic growth expectations.

Positive Factors

Improved profitability and revenue growthThe sharp improvement in revenue and profitability indicates that the company has moved beyond earlier loss-making periods and is currently converting sales into meaningful earnings. If maintained, these margins can support reinvestment, strengthen operating resilience, and improve its ability to advance mining projects.

Negative Factors

Deeply negative free cash flowFree cash flow remains substantially negative despite positive operating cash flow, showing that current investment or working-capital demands consume more cash than the business generates. If this persists, the company may need to draw down reserves or seek external funding to sustain development.

Sierra Madre Gold & Silver Ltd. (SM) vs. iShares MSCI Canada ETF (EWC)

Market Cap: CAD 245.94M
Dividend Yield: ―
Average Volume (3M): 191.92K
Price to Earnings (P/E): 20.8
Beta (1Y): 2.93
Revenue Growth: 90.57%
EPS Growth: ―
Country: Canada
Employees: 0
Sector: General
Sector Strength: 55
Industry: Other Precious Metals

Sierra Madre Gold & Silver Ltd. Business Overview & Revenue Model

Company Description

Sierra Madre Gold and Silver Ltd. operates as a mineral exploration firm primarily focused on identifying, acquiring, and advancing potential resource sites. The company's holdings include the Tepic silver-gold property, situated southeast of the cit...

Sierra Madre Gold & Silver Ltd. Financial Statement Overview

Summary

Strong revenue growth from roughly 5 million in 2024 to about 32 million TTM with mid-30% gross margins and high-20% net margins, supported by an almost debt-free balance sheet and rising equity, justify a high score, moderated by consistently negative free cash flow and a relatively short, volatile profitability track record.

Income Statement

82Very Positive

Balance Sheet

88Very Positive

Cash Flow

56Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	31.93M	25.39M	4.50M	0	0	0
Gross Profit	10.40M	8.78M	945.05K	-325.72K	-275.47K	-2,296
EBITDA	5.54M	4.74M	-2.32M	-2.89M	-96.68K	-7.11M
Net Income	8.01M	8.28M	-3.88M	-53.02M	-2.56M	-7.11M
Balance Sheet
Total Assets	130.70M	66.84M	34.87M	40.40M	28.11M	10.93M
Cash, Cash Equivalents and Short-Term Investments	22.12M	17.29M	451.81K	2.56M	88.24K	10.21M
Total Debt	0	5.37M	5.38M	20.23K	0	0
Total Liabilities	24.80M	17.95M	9.93M	5.01M	12.42M	141.87K
Stockholders Equity	105.90M	48.89M	24.94M	35.39M	15.68M	10.79M
Cash Flow
Free Cash Flow	-26.92M	-2.25M	-7.45M	-9.59M	-2.07M	-4.71M
Operating Cash Flow	3.96M	3.32M	-3.55M	-7.07M	-2.01M	-4.70M
Investing Cash Flow	-33.82M	-11.06M	-3.62M	-1.41M	-517.10K	-23.01K
Financing Cash Flow	51.30M	21.02M	5.77M	10.61M	3.22M	-351.59K

Sierra Madre Gold & Silver Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1.25

Price Trends

50DMA1.49Negative

100DMA1.49Negative

200DMA1.76Negative

Market Momentum

MACD-0.06Positive

RSI37.63Neutral

STOCH31.69Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SM, the sentiment is Negative. The current price of 1.25 is below the 20-day moving average (MA) of 1.41, below the 50-day MA of 1.49, and below the 200-day MA of 1.76, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 37.63 is Neutral, neither overbought nor oversold. The STOCH value of 31.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SM.

Sierra Madre Gold & Silver Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TSE:SM against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:SM	71Outperform	CAD 323.48M	20.80	12.84%	―	90.57%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TSE:SLVR	50Neutral	CAD 461.04M	-60.87	-3.50%	―	―	4.13%
TSE:DEF	47Neutral	CAD 41.38M	-15.07	-4.70%	―	―	22.33%
TSE:SSV	44Neutral	CAD 155.40M	-12.29	-22.57%	―	―	-61.83%
TSE:BRC	38Underperform	CAD 294.07M	-15.02	-85.35%	―	―	26.29%
TSE:PGDC	38Underperform	CAD 133.88M	-11.33	82.09%	―	31.35%	20.45%

* General Sector Average

Performance Comparison

TSE:SM and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TSE:SM	Sierra Madre Gold & Silver Ltd.	1.25	-0.01	-0.79%
TSE:BRC	Blackrock Silver	0.77	0.13	20.31%
TSE:DEF	Defiance Silver	0.11	-0.09	-44.44%
TSE:PGDC	Patagonia Gold Corp	0.28	0.12	78.12%
TSE:SLVR	Silver Tiger Metals, Inc.	0.70	-0.04	-5.41%
TSE:SSV	Southern Silver Exploration	0.37	0.02	4.23%

Sierra Madre Gold & Silver Ltd. Corporate Events

Business Operations and Strategy

Sierra Madre Boosts Guitarra Plant Throughput as Mine Development Ramps Up

Positive

Sep 28, 2026

Sierra Madre Gold & Silver has lifted throughput at its Guitarra processing plant to a steady 720 tonnes per day after Phase 1 upgrades, a more than 40% rise over the former 500 tpd capacity, and is installing a new 11×12 ball mill to reach...

Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing

Sierra Madre Posts Solid Q2 Results and Accelerates Mexico Growth Strategy

Positive

Aug 27, 2026

Sierra Madre reported Q2 2026 net revenues of US$8.23 million and gross profit of US$1.58 million from its La Guitarra operation, driven by the sale of 123,483 silver equivalent ounces and higher realized prices for both silver and gold. The company...

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: Oct 07, 2026

Sierra Madre Gold & Silver Ltd. AI Stock Analysis