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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 Strong 2025 Results Driven by Precious Metals and Critical Materials Investments

Sprott Inc.'s financial performance in 2025 was outstanding, with net income reaching $67.3 million, up $18.1 million from $49.3 million in the previous year. Earnings per share (EPS) came in at $2.13, beating analyst estimates of $1.62. Revenue growth is expected to continue, with analyst estimates predicting a 9.1% increase in revenues for the next year. The company's managed equity strategies delivered strong performance, with AUM increasing by 97% during the year to $5.7 billion. The net income for the fourth quarter was $28.7 million, up $17 million from the same period last year.

Publication Date: Feb -24

📋 Highlights
  • Year-End AUM Surge:: Assets under management (AUM) grew by $28.1 billion in 2025, reaching $59.6 billion, and surged further by $10.5 billion post-year-end to $70.1 billion by February 13, 2026.
  • Record Net Income:: Q4 2025 net income hit $28.7 million (up $17 million YoY), while full-year net income reached $67.3 million (up $18.1 million YoY).
  • Physical Trust Growth:: Physical trust funds saw a 97% AUM increase to $47 billion by year-end and added $7 billion year-to-date, driven by institutional demand.
  • Gold Equity Fund Performance:: The flagship gold equity fund delivered 18% growth in Q4 2025 and 148% annual returns, reflecting strong investor appetite for gold.
  • ETF Margin Scalability:: ETF unitary fees enable margin expansion as AUM scales, with critical materials funds outperforming peers by 10–14% and copper mining ETFs showing significant gains.

Assets Under Management (AUM) Growth

Sprott's AUM increased by $10.5 billion during the fourth quarter and closed the year at $59.6 billion, up $28.1 billion from December 31, 2024. Subsequent to year-end, AUM continued to grow, reaching $70.1 billion as of February 13, 2026. The physical trust fund suite generated significant growth, with a 97% gain in AUM to $47 billion. As John Ciampaglia mentioned, "growing AUM and liquidity begets AUM and liquidity as ever larger institutions allocate to the sector."

Valuation Metrics

To understand what's priced into Sprott's stock, we can look at various valuation metrics. The Price-to-Book Ratio (P/B) stands at 7.8, and the Price-to-Sales Ratio (P/S) is 12.31. The ROE is 20.71%, indicating strong profitability. Given the expected revenue growth and the current valuation multiples, it's essential to assess whether the stock is reasonably priced. The Dividend Yield is 0.88%, and the Free Cash Flow Yield is 1.8%, providing some return to investors.

Business Outlook

Sprott expects more volatility in the markets in 2026, with a potential technical correction in precious metals. However, the company is well-positioned to capitalize on the growing demand for critical materials and precious metals. The ETF platform is expected to continue growing, with incremental margins improving as assets scale. The company's strong balance sheet and growing dividend are attractive features for investors.

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
Dividend 15 Split

A-Score: 7.4/10

Value: 3.2

Growth: 7.8

Quality: 6.7

Yield: 10.0

Momentum: 7.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Stellus Capital

A-Score: 6.6/10

Value: 5.8

Growth: 5.6

Quality: 5.3

Yield: 10.0

Momentum: 3.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Sprott

A-Score: 6.0/10

Value: 1.0

Growth: 6.4

Quality: 7.6

Yield: 4.0

Momentum: 10.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Diamond Hill Investment

A-Score: 5.9/10

Value: 7.8

Growth: 3.2

Quality: 7.9

Yield: 10.0

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Virtus Investment Partners

A-Score: 5.6/10

Value: 6.2

Growth: 5.1

Quality: 5.3

Yield: 8.0

Momentum: 2.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Clairvest Group

A-Score: 5.5/10

Value: 3.8

Growth: 5.8

Quality: 6.2

Yield: 1.0

Momentum: 6.5

Volatility: 10.0

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

216.85$

Current Price

216.85$

Potential

-0.00%

Expected Cash-Flows