At the current price of $4, what is the market’s view of SSR Mining’s future operating performance? SSR Mining’s common shares will need to reach $7 to achieve average annual stock market performance of 9.0% over the next 6 years. Upper quartile performance will require a $9 SSR Mining stock price by 2029.
Executive Summary
- SSR Mining’s important characteristics: high expected growth, stability, above average financial strength, and average profitability.
- Very low valuation, lagging shareholder returns. Current valuation levels are very low relative to the SSR Mining Peer Group. Recent market returns have substantially underperformed the SSR Mining Peer Group. Total shareholder returns expected to significantly beat the overall equity market. Based on current investor expectations, SSR Mining shares should reach a level of $20 by 2029 — an 33.6% per year total shareholder return. A 2029 stock price of $7 would reflect median performance and a price of $9 would be required to reach upper quartile performance.
- SSR Mining’s historical growth is modestly above average. Historical growth has been high relative to the SSR Mining Peer Group and forecasted growth is relatively very high. Revenue Growth has been superior. This factor has buoyed market perceptions of SSR Mining. SSR Mining’s historical income statement and balance sheet growth are not available. SSR Mining’s consensus growth expectations are higher than historical growth.
- Pretax Margin, and Pretax ROA are group lagging. These factors have negatively affected market perceptions of SSR Mining. The company has normal cash needs.
- SSR Mining’s risk profile is favorable. Overall variability has been above average with above average revenue variability, relatively low E.P.S. variability, and relatively low stock price volatility. Financial Strength is relatively high and earnings’ expectations are very low. The debt/capital ratio has declined very significantly.
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