Sandstorm Gold (SSL) AI Stock Analysis

• Market Cap: $3.72B
• Dividend Yield: 0.62%
• Average Volume (3M): 555.52K
• Price to Earnings (P/E): 93.1
• Beta (1Y): 1.11
• Revenue Growth: 6.23%
• EPS Growth: 36.40%
• Country: CA
• Employees: 23
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Gold
• EPS (TTM): 0.06
• Shares Outstanding: 293,175,260
• 10 Day Avg. Volume: 524,584
• 30 Day Avg. Volume: 555,523
• PEG Ratio: 0.07
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.02
• Enterprise Value/Market Cap: 0.41
• Enterprise Value/Revenue: 2.18
• Enterprise Value/Gross Profit: 14.63
• Enterprise Value/Ebitda: 2.98
• 1Y Price Target: $14.24
• Price Target Upside: 12.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 73 Outperform
• Price Target: C$14.00 ▲(10.24%Upside)

Sandstorm Gold's strong financial performance and technical indicators drive the stock's positive outlook. Record earnings and strategic capital management were highlighted in the earnings call but are tempered by high valuation metrics and production challenges.

Positive Factors

Production Forecast

Sandstorm increased its long-term production forecast to ~150koz GEOs in 2030, indicating strong future growth potential.

Revenue Growth

Sandstorm Gold recognized record total revenue of $50.1M, driven by a significant increase in the average realized gold price per ounce.

Share Repurchase

The company has repurchased 3.1M common shares, which has increased its NAV per share and improved its valuation.

Negative Factors

Earnings Performance

Sandstorm reported Q4/24 adjusted EPS that was a bit below consensus and our estimate.

Gold Equivalent Ounces

The slight revenue decline is primarily due to lower attributable Gold Equivalent Ounces (GEOs) sold, though this effect was partially offset by a 23% YoY increase in the average gold price.

Leverage Concerns

For some investors, Sandstorm’s near-term elevated leverage and recent announcements potentially impact its growth profile.

Sandstorm Gold Business Overview & Revenue Model

Company Description

Sandstorm Gold Ltd. operates as a gold royalty company. The company focuses on acquiring royalties and gold and other metals purchase agreements (streams) from companies that have advanced stage development projects or operating mines. It offers upfront payments for companies to acquire a stream or royalty and receives the right to purchase a percentage of a mine's production for the life of the mine at a fixed price per unit or at a fixed percentage of the spot price. The company has a portfolio of 230 streams and royalties. It primarily has operations in Canada, Mexico, the United States, Mongolia, Burkina Faso, Ecuador, South Africa, Ghana, Botswana, Cote D'Ivoire, Argentina, Brazil, Chile, Peru, Egypt, Ethiopia, Guyana, Paraguay, French Guiana, Turkey, Sweden, Fiji, and Australia. The company was formerly known as Sandstorm Resources Ltd. and changed its name to Sandstorm Gold Ltd. in February 2011. Sandstorm Gold Ltd. was incorporated in 2007 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Sandstorm Gold generates revenue primarily through its streaming and royalty agreements. In a streaming agreement, Sandstorm pays upfront to mining companies for the right to purchase a certain percentage of the gold or other metals produced by the mine at a predetermined price, which is typically below the market rate. This allows Sandstorm to benefit from the difference between the market price and the purchase price. Royalties, on the other hand, provide Sandstorm with a percentage of revenue or production from a mine, without the need to purchase the physical product. These revenue streams are typically long-term and provide Sandstorm with consistent cash flow. The company's earnings are also influenced by the price of gold and other precious metals, the production levels of the mines they have agreements with, and any new streaming and royalty agreements they enter into. Strategic partnerships with mining companies and a diverse portfolio of agreements are significant factors that contribute to Sandstorm's earnings.

Sandstorm Gold Financial Statement Overview

Summary

Sandstorm Gold demonstrates robust profitability with high margins and consistent revenue growth. The balance sheet is stable, though there's room for improved asset utilization and ROE. Strong cash flow management is evident with significant free cash flow growth.

Income Statement

Sandstorm Gold demonstrates strong profitability with a solid gross profit margin of 57.04% and a net profit margin of 15.80% in the TTM. The company has shown a consistent revenue growth trajectory, with a revenue increase of 4.11% in the TTM compared to the previous year. The EBIT margin of 51.65% and EBITDA margin of 72.00% further underscore the company's operational efficiency. However, the slight deceleration in revenue growth compared to prior years indicates potential market challenges.

Balance Sheet

The company's balance sheet is stable with a healthy equity ratio of 77.21%, reflecting a strong equity position. The debt-to-equity ratio is moderate at 0.24, indicating manageable leverage. ROE stands at 2.06% in the TTM, which could be improved to enhance shareholder returns. Overall, the balance sheet reflects financial stability but highlights room for optimization in asset utilization.

Cash Flow

Sandstorm Gold showcases a robust cash flow position with a significant operating cash flow to net income ratio of 4.96, indicating efficient cash generation relative to net earnings. The free cash flow to net income ratio is also strong at 4.62, suggesting effective free cash flow management. The company has achieved a healthy free cash flow growth rate of 9.56% in the TTM, reflecting strong cash flow generation capabilities. The overall cash flow performance is commendable with sustainable growth.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
183.54M	176.28M	179.64M	148.73M	114.86M	93.03M
	Gross Profit
104.68M	95.98M	82.62M	65.59M	62.31M	45.85M
	EBIT
94.79M	71.03M	136.43M	41.95M	43.81M	31.77M
	EBITDA
132.16M	126.87M	162.35M	102.19M	83.17M	59.99M
	Net Income Common Stockholders
28.99M	14.29M	41.72M	78.36M	27.62M	13.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.70M	11.29M	33.40M	10.80M	21.17M	115.63M
	Total Assets
1.82B	1.85B	1.93B	1.97B	620.86M	649.92M
	Total Debt
340.00M	355.00M	435.00M	499.55M	2.58M	2.87M
	Net Debt
336.48M	350.61M	430.00M	492.52M	-13.59M	-110.91M
	Total Liabilities
391.82M	400.84M	477.44M	533.37M	28.22M	11.78M
	Stockholders Equity
1.41B	1.43B	1.43B	1.41B	592.64M	638.14M
Cash Flow		Free Cash Flow
134.04M	122.38M	131.81M	-513.87M	-71.56M	62.14M
	Operating Cash Flow
143.71M	135.38M	152.75M	106.92M	81.14M	65.62M
	Investing Cash Flow
14.63M	10.94M	-22.18M	-612.67M	-143.91M	33.68M
	Financing Cash Flow
-157.78M	-146.74M	-131.93M	497.56M	-34.22M	7.69M

Sandstorm Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SSL, the sentiment is Positive. The current price of 12.7 is above the 20-day moving average (MA) of 12.33, above the 50-day MA of 11.74, and above the 200-day MA of 9.27, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 59.64 is Neutral, neither overbought nor oversold. The STOCH value of 43.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SSL.

Sandstorm Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORE	77 Outperform	C$748.31M	7.52	25.43%	―	22.51%	56.77%
SSL	73 Outperform	$3.72B	93.11	2.05%	0.62%	6.23%	36.40%
ELE	72 Outperform	C$385.85M	64.08	2.36%	―	109.11%	―
OGN	70 Outperform	C$394.49M	101.30	5.89%	―	33.96%	37.86%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%
OR		$5.03B	163.22	2.50%	0.67%	―	―
AMRQ	41 Neutral	C$621.74M	―	-11.37%	―	―	-2270.97%

Sandstorm Gold Corporate Events

Sandstorm Gold Royalties Reports Major Exploration Advances

Sandstorm Gold Royalties announced significant exploration developments within its portfolio, highlighting a new gold-silver discovery by First Majestic Silver Corp. at the Santa Elena property in Mexico. This discovery, known as the Santo Niño vein, adds substantial potential to the Santa Elena district, where Sandstorm holds a gold stream. Additionally, Lundin Gold Ltd. has expanded its drilling program at the Fruta del Norte mine in Ecuador, aiming to enhance the mine’s long-term plan with promising high-grade results. These developments underscore Sandstorm’s strategic positioning in the mining sector, enhancing its growth prospects and potential returns for stakeholders.

The most recent analyst rating on (TSE:SSL) stock is a Buy with a C$10.25 price target. To see the full list of analyst forecasts on Sandstorm Gold stock, see the TSE:SSL Stock Forecast page.

Sandstorm Gold Receives Favorable Proxy Advisor Recommendations for Shareholder Meeting

Sandstorm Gold Royalties announced that Institutional Shareholder Services Inc. (ISS) and Glass, Lewis & Co. LLC have recommended that shareholders vote in favor of all management proposals at the upcoming Annual General and Special Meeting. This includes proposals related to amendments to the company’s share-based compensation program. The favorable recommendations from these leading proxy advisors are expected to positively impact the company’s governance and shareholder relations.

The most recent analyst rating on (TSE:SSL) stock is a Buy with a C$10.25 price target. To see the full list of analyst forecasts on Sandstorm Gold stock, see the TSE:SSL Stock Forecast page.

Sandstorm Gold Clarifies Shareholder Meeting Amendments Amid ISS Misinterpretation

Sandstorm Gold Royalties has issued clarifying amendments to its 2025 shareholder meeting materials following a misinterpretation by Institutional Shareholder Services Inc. (ISS) regarding the company’s share-based compensation program. The amendments aim to ensure accurate interpretation of the proposed changes and align executive compensation with shareholder interests. The Toronto Stock Exchange and the company’s Board of Directors have approved these amendments, which set a fixed maximum limit of 6.0% for share issuances under the Share Plans, countering ISS’s recommendation against the proposals.

The most recent analyst rating on (TSE:SSL) stock is a Buy with a C$10.25 price target. To see the full list of analyst forecasts on Sandstorm Gold stock, see the TSE:SSL Stock Forecast page.

Sandstorm Gold Achieves Record Revenue and Strategic Share Buybacks in Q1 2025

Sandstorm Gold Royalties reported a strong first quarter in 2025, with record preliminary revenue of $50.1 million and total sales, royalties, and income from other interests reaching $54.1 million. The company also executed $19 million in share buybacks, reflecting its strategic capital allocation approach to enhance shareholder value. The company plans to continue assessing its capital allocation strategy, focusing on further share purchases and debt repayment depending on market conditions. This financial performance underscores Sandstorm’s robust positioning in the precious metals industry and its commitment to maximizing shareholder returns.