Buffett Brain · Research note
Score updated 23 Oct 2026 · analysis from 27 Jul 2026
SII· Financial Services
Sprott
Sprott Inc. boasts a solid ROIC of 18.2% but faces valuation challenges with a P/E of 34.9, raising concerns about margin sustainability.
Buffett fit
Partial fit
Owner
65
Durability
71
Management
88
Price
10
Score updated 23 Oct 2026 · analysis from 27 Jul 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Financial Services stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned Sprott Inc. outright, I would focus on maintaining the 18.2% while ensuring that the revenue CAGR of 15.63% continues.
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Sprott has shown profitability over the last five years, but the EPS max decline of -48.87% raises concerns about its resilience.
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Management has maintained a stable share count CAGR of 0.91% and a modest yield of 0.06%.
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With an yield of only 2.87%, the valuation appears stretched compared to my target of 8-10%.
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- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 18.2% exceeds the sector top-quintile cutoff of 10.6%.
- 2Revenue CAGR of 15.63% over the last five years indicates strong growth.
- 3 of $95.84M demonstrates solid cash generation.
- 4Management quality score of 88 suggests strong discipline.
Concerns
5- 1 of 34.9 is significantly above the acceptable range, indicating overvaluation.
- 2 of 75.6% is below the sector top-quintile cutoff of 81.9%.
- 3 of 30% falls short of the sector's top-quintile of 58.3%.
- 4Net margin of 22.7% is below the sector's top-quintile cutoff of 44.6%.
Price history
$106+161.6%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Sprott Inc. operates as an asset management firm, generating revenue through mutual funds, hedge funds, and managed accounts, totaling $294.88M TTM. The company has a strong of $95.84M, indicating healthy cash generation. With a 22.72% net margin, the unit economics appear favorable.
What other investors would say
The same company, judged by three other documented playbooks.
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