Financial Analysis: Sherritt International (SHERF) versus The Competition

Institutional and Insider Ownership

41.5% of Sherritt International shares are owned by institutional investors. Comparatively, 16.1% of shares of all “Metals & Mining” companies are owned by institutional investors. 17.6% of shares of all “Metals & Mining” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Sherritt International and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sherritt International	N/A	N/A	-0.13
Sherritt International Competitors	$5.18 billion	$268.32 million	-25.16

Sherritt International’s rivals have higher revenue and earnings than Sherritt International. Sherritt International is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Sherritt International pays an annual dividend of $0.07 per share and has a dividend yield of 21.5%. Sherritt International pays out -2.7% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 8.4% and pay out 10.6% of their earnings in the form of a dividend. Sherritt International is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Profitability

This table compares Sherritt International and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sherritt International	N/A	N/A	N/A
Sherritt International Competitors	-1,155,490,457,955,101,400.00%	-14.52%	-2.08%

Summary

Sherritt International beats its rivals on 7 of the 9 factors compared.

Sherritt International Company Profile

Sherritt International Corporation engages in the mining, processing, refining, and sale of nickel and cobalt in North America, Cuba, Europe, Asia, Australia, and internationally. It operates through Metals, Power, Technologies, Oil and Gas, and Corporate segments. The company also produces and sells agricultural fertilizers, such as anhydrous ammonia, granular ammonium sulfate, and crystalline ammonium sulfate; and sulfuric acid, zinc sulfides, and copper sulfides. In addition, it constructs and operates power generation facilities that provide electricity in Cuba. Further, the company offers technical support, process optimization, and technology development services; and ancillary drilling services. Its products are used in stainless steel, specialty steel, chemical, and welding applications. Sherritt International Corporation was incorporated in 1927 and is based in Toronto, Canada.