Fact based stock research
Sandstorm Gold (TSX:SSL)

CA80013R2063

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Sandstorm Gold stock research in summary

sandstormgold.com

ANALYSIS: With an Obermatt Combined Rank of 4 (worse than 96% compared with investment alternatives), Sandstorm Gold (Gold Production, Canada) shares have lower financial characteristics compared with similar stocks. Shares of Sandstorm Gold are low in value (priced high) with a consolidated Value Rank of 26 (worse than 74% of alternatives), show below-average growth (Growth Rank of 15), and are riskily financed (Safety Rank of 14), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 4, is a sell recommendation based on Sandstorm Gold's financial characteristics. As the company Sandstorm Gold's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 26), low growth (Obermatt Growth Rank of 15), and risky financing practices (Obermatt Safety Rank of 14), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	26
Growth Rank	15
Safety Rank	14
Combined Rank	4

Country	Canada
Industry	Gold Production
Index	Copper, Gold, Silver, TSX Composite
Size class	Small

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Sandstorm Gold

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	19	13	24	26
GROWTH
GROWTH	43	23	9	15
SAFETY
SAFETY	59	18	6	14
SENTIMENT
SENTIMENT	n/a	15	47	^new
360° VIEW
360° VIEW	n/a	5	8	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Sandstorm Gold is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	19	13	24	26
GROWTH
GROWTH	43	23	9	15
SAFETY
SAFETY	59	18	6	14
COMBINED
COMBINED	26	26	4	4

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Sandstorm Gold the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 26 (worse than 74% compared with alternatives), Sandstorm Gold shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Sandstorm Gold. Expected dividend yields are higher than for 51% of comparable companies (a Dividend Yield rank of 51), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 70, which means that the stock price is lower compared with invested capital than for 70% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 7 which means that the stock price compared with what market professionals expect for future profits is higher than for 93% of comparable companies, indicating a low value concerning Sandstorm Gold's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Sandstorm Gold with a rank of 7. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 93% of comparable companies, indicating a low value concerning Sandstorm Gold's profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 26, is a hold recommendation based on Sandstorm Gold's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Sandstorm Gold may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	12	11	11	7
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	32	5	1	7
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	58	44	69	70
DIVIDEND YIELD
DIVIDEND YIELD	1	53	51	51
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	19	13	24	26

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Sandstorm Gold; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 15 (better than 15% compared with alternatives), Sandstorm Gold shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for Sandstorm Gold. While Sales Growth ranks at 73, professionals currently expect the company to grow more than 73% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 16, which means that, currently, professionals expect the company to grow its profits less than 84% of its competitors, and Capital Growth has a low rank of 1. Historic stock returns were also below average with a current Stock Returns rank of 35 which means that the stock returns have recently been below 65% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 15, is a sell recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance isn't stellar here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	55	56	34	73
PROFIT GROWTH
PROFIT GROWTH	n/a	51	30	16
CAPITAL GROWTH
CAPITAL GROWTH	n/a	1	1	1
STOCK RETURNS
STOCK RETURNS	14	47	33	35
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	43	23	9	15

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Sandstorm Gold.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 14 (better than 14% compared with alternatives), the company Sandstorm Gold has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Sandstorm Gold is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Sandstorm Gold. Liquidity is at 24, meaning that the company generates less profit to service its debt than 76% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 46, meaning the company has an above-average debt-to-equity ratio. It has more debt than 54% of its competitors. Finally, Refinancing is at a rank of 15 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 85% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 14 (worse than 86% compared with alternatives), Sandstorm Gold has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Sandstorm Gold because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	58	93	40	46
REFINANCING
REFINANCING	60	16	11	15
LIQUIDITY
LIQUIDITY	43	4	9	24
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	59	18	6	14

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Sandstorm Gold and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	38	83	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	13	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	82	40	^new
MARKET PULSE
MARKET PULSE	n/a	34	15	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	15	47	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Sandstorm Gold.
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