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1. Company Snapshot

1.a. 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 offers mutual funds, hedge funds, and offshore funds, along with managed accounts.Further, the firm also provides broker-dealer activities.Sprott Inc.


was formed on February 13, 2008 and is based in Toronto, Canada.

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1.b. Last Insights on SII

Recent drivers behind Sprott Inc.'s performance include a 10% decline in share price over the last month, despite a 20% dividend increase and a 20% increase in net income. The company reported earnings of $12.7 million in Q3 2024, with a profit of 49 cents per share. Sprott's Assets Under Management (AUM) reached a record high of $33.4 billion as of September 30, 2024, driven by strong gold and silver prices. The company is poised for further expansion with the anticipated launch of two new precious metals ETFs in early 2025.

1.c. Company Highlights

2. Sprott's Q3 Earnings: Strong AUM Growth and Strategic Appointments

Sprott Inc.'s financial performance for the third quarter of 2025 was marked by a net income of $13.2 million, up 4% from the same period last year, while adjusted EBITDA was $31.9 million, up 54%. Earnings per share (EPS) came in at $0.71, below analyst estimates of $1.13. Revenue growth is estimated to be around 11.2% for the next year, indicating a positive outlook. The company's cash and liquidity profile remains strong, supporting the increased dividend. The Board declared a third quarter dividend of $0.40 per share, a 33% increase.

Publication Date: Nov -26

📋 Highlights
  • AUM Surge: Assets under management rose by $9 billion to $49.1 billion, driven by gold/silver price hikes, surpassing $50 billion in October.
  • ETF Growth: ETF assets ballooned from under $400 million to $4.4 billion since 2022, with 83% AUM growth in 2025.
  • Dividend Boost: Q3 dividend increased 33% to $0.40/share, reflecting strong liquidity ($80 million cash) and confidence in future opportunities.
  • Equity Fund Performance: Flagship gold equity fund surged 105% YTD, with 18 funds reporting positive sales in September 2025.
  • Uranium Market Dynamics: Term uranium prices hit multiyear highs; Sprott faces sourcing challenges but anticipates utilities returning to the market.

Assets Under Management and Product Performance

The company's assets under management (AUM) increased by $9 billion during the quarter, driven by rising gold and silver prices, and surpassed $50 billion for the first time in October. AUM finished the quarter at $49.1 billion, up 23% from the previous quarter and 56% from December 31, 2024. The physical trusts represent 76% of overall AUM, and the ETF product suite has seen AUM growth of 83% this year. The managed equities business delivered outstanding performance, with the flagship gold equity fund up 44% during the quarter and 105% year-to-date.

Valuation and Dividend Yield

With a P/E Ratio of 45.57 and a P/B Ratio of 6.57, the company's valuation appears to be reflective of its strong growth prospects. The Dividend Yield is 1.47%, which, although not exceptionally high, is supported by the company's strong cash position and commitment to returning value to shareholders through the increased dividend. The EV/EBITDA ratio stands at 29.7, indicating that the company's enterprise value is significantly higher than its EBITDA, suggesting a premium valuation. The ROE of 15.04% indicates a good return on equity.

Strategic Appointments and Future Outlook

The company announced executive appointments, including Ryan McIntyre as President and Kevin Hibbert and Arthur Einav as co-COOs. These appointments signal the company's focus on long-term leadership and its commitment to leveraging its investment team's expertise. As Whitney George noted, the company is delivering improving results and investment performance, with a core positioning in precious metals and critical materials that will benefit from global trends. The company is well-positioned to capitalize on the growing interest in its funds, with a strong brand and technical expertise.

Market Trends and Opportunities

The company is experiencing broad and growing interest in its funds, with 18 different funds contributing to positive sales in September. The tokenization of real assets is a theme that's gathering momentum, and the company is watching this space closely. The U.S. is focused on building its supply chain, with investments in enrichment facilities and fast-tracking mining permits, which could lead to a bifurcated pricing environment for uranium. The physical silver market dislocation is starting to abate, and the company has been a beneficiary of this situation.

3. NewsRoom

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Sprott Critical Materials ETF Reaches $100 Million in Assets

Oct -14

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Sprott Physical Silver Trust Net Asset Value Reaches $10 Billion

Oct -14

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Sprott Physical Platinum and Palladium Trust Updates its "At-the-Market" Equity Program

Oct -10

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Precious Metals ETF Surge Could Be a Game Changer For Sprott (TSX:SII)

Oct -04

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Sprott Active Gold & Silver Miners ETF Reaches $100 Million in Assets

Oct -02

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Silver nears record in hockey stick rally, gold approaches $4,000 an ounce

Sep -30

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SII- An Attractive Asset Manager in this Bull Market for Metals

Sep -29

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Sprott Inc. (SII): A Bull Case Theory

Sep -28

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.96%)

6. Segments

Exchange Listed Products

Expected Growth: 8%

Sprott Inc.'s 8% growth in Exchange Listed Products is driven by increasing demand for precious metal ETFs, strong gold and silver prices, and expanding distribution channels. Additionally, the company's strategic acquisitions, such as the purchase of Central GoldTrust, have contributed to the growth. Furthermore, Sprott's focus on innovative products and its reputation for investment expertise have attracted new investors, fueling growth.

Managed Equities

Expected Growth: 6%

Sprott's Managed Equities growth is driven by increasing demand for precious metal exposure, strong gold prices, and a growing investor appetite for alternative assets. Additionally, the fund's active management approach, diversification strategies, and the company's reputation for delivering strong returns contribute to its 6% growth.

Private Strategies

Expected Growth: 5%

Sprott Inc.'s Private Strategies segment growth is driven by increasing demand for alternative investments, expansion into new markets, and strategic partnerships. The 5% growth rate is also attributed to the company's expertise in precious metals and natural resources, as well as its ability to attract and retain high-net-worth clients seeking diversification and risk management solutions.

Consolidation, Elimination and All Other

Expected Growth: 4%

Consolidation: Acquisitions of precious metal funds, increasing AUM. Elimination: Cost-cutting measures, streamlining operations. All Other: Strong gold price, increasing demand for precious metals, and diversification into new markets, contributing to 4% growth.

Corporate Services

Expected Growth: 3%

Sprott Inc.'s Corporate Services segment growth is driven by increasing demand for precious metal storage and administrative services, expansion into new markets, and strategic acquisitions. Additionally, the company's expertise in bullion storage and coin sales, as well as its strong relationships with dealers and institutions, contribute to its growth.

7. Detailed Products

Precious Metals

Sprott Inc. offers a range of precious metals investment products, including gold, silver, platinum, and palladium, in the form of coins, bars, and exchange-traded funds (ETFs).

Bullion Storage

Sprott Inc. provides secure storage facilities for precious metals, allowing investors to store their physical bullion in a safe and secure environment.

Managed Accounts

Sprott Inc. offers managed account services, where experienced portfolio managers invest in a diversified portfolio of precious metals and other assets on behalf of clients.

Exchange-Traded Funds (ETFs)

Sprott Inc. offers a range of ETFs that track the price of precious metals, allowing investors to gain exposure to the market through a diversified portfolio.

Mutual Funds

Sprott Inc. offers a range of mutual funds that invest in precious metals and other assets, providing investors with a diversified portfolio.

Brokerage Services

Sprott Inc. provides brokerage services, allowing investors to buy and sell precious metals and other assets through a secure online platform.

8. Sprott Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Sprott Inc. operates in a niche market, providing investment management services to high net worth individuals and institutional clients. While there are substitutes available, such as robo-advisors and index funds, Sprott's specialized services and expertise in precious metals and natural resources provide a competitive advantage.

Bargaining Power Of Customers

Sprott Inc.'s clients are primarily high net worth individuals and institutional investors, who have limited bargaining power due to their reliance on Sprott's expertise and services.

Bargaining Power Of Suppliers

Sprott Inc. has a diversified supplier base, and its suppliers have limited bargaining power due to the company's strong reputation and negotiating power.

Threat Of New Entrants

The investment management industry has high barriers to entry, including regulatory hurdles and the need for significant capital and expertise. This limits the threat of new entrants and provides a competitive advantage to established players like Sprott Inc.

Intensity Of Rivalry

The investment management industry is highly competitive, with many established players competing for market share. Sprott Inc. faces intense competition from other investment managers and asset managers, which can lead to pricing pressure and competition for talent.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 7.35%
Debt Cost 10.95%
Equity Weight 92.65%
Equity Cost 10.95%
WACC 10.95%
Leverage 7.93%

11. Quality Control: Sprott Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Stellus Capital

A-Score: 7.4/10

Value: 7.6

Growth: 6.8

Quality: 6.1

Yield: 10.0

Momentum: 4.0

Volatility: 9.7

1-Year Total Return ->

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Dividend 15 Split

A-Score: 7.1/10

Value: 3.1

Growth: 7.8

Quality: 6.7

Yield: 10.0

Momentum: 6.0

Volatility: 9.3

1-Year Total Return ->

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Clairvest Group

A-Score: 6.6/10

Value: 7.1

Growth: 6.0

Quality: 8.2

Yield: 4.0

Momentum: 4.5

Volatility: 10.0

1-Year Total Return ->

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Diamond Hill Investment

A-Score: 6.5/10

Value: 6.8

Growth: 3.2

Quality: 8.4

Yield: 9.0

Momentum: 3.0

Volatility: 8.7

1-Year Total Return ->

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Sprott

A-Score: 6.1/10

Value: 1.3

Growth: 6.6

Quality: 7.9

Yield: 3.0

Momentum: 10.0

Volatility: 7.7

1-Year Total Return ->

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Virtus Investment Partners

A-Score: 5.9/10

Value: 5.6

Growth: 5.1

Quality: 7.2

Yield: 7.0

Momentum: 3.5

Volatility: 6.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

127.67$

Current Price

127.67$

Potential

-0.00%

Expected Cash-Flows