CEF

We rate Sprott Physical Gold & Silver Trust (CEF) as a Hold with a composite score of 60.3/100 at a current price of $54.10. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.

The rating is primarily driven by strength in momentum (96th percentile) and quality (75th percentile), which together account for the majority of the composite score. Offsetting weakness in value (25th percentile) and investment (35th percentile) tempers our overall conviction. We assign a Narrow Moat rating (61/100), Low uncertainty, and Exemplary capital allocation.

Key items to watch: sustainability of the current growth rate; valuation compression risk if growth disappoints. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is widening, which provides additional comfort in the durability of the competitive position.

Sprott Physical Gold & Silver Trust holds a mid-tier position (#33 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 60.3/100 places it at rank #658 in our full 7,333-stock universe. At N/A in market capitalization, Sprott Physical Gold & Silver Trust is a small-cap player in the Finance, Insurance, And Real Estate space, which limits certain scale advantages but may allow for more agile strategic execution.

The near-term outlook is constructive, with revenue growing at 721% and momentum in the 96th percentile confirming positive market sentiment and institutional accumulation. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy. Investment factor at the 35th percentile indicates reinvestment patterns that investors should monitor for sustainability.

The margin cascade tells an important story: gross margins of 100% (+23.2pp vs sector) narrow to operating margins of 1383% (+1366.1pp vs sector) and net margins of 1383.2%, yielding a gross-to-net conversion rate of 1387%. This efficient conversion suggests well-controlled operating costs and limited margin leakage between the gross and net levels.

At a current price of $54.10, Sprott Physical Gold & Silver Trust is trading at a premium to fundamental value. Our value factor score of 25/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The premium valuation implies the market is pricing in significant future growth or quality improvements that are not yet fully reflected in current fundamentals.

The stock currently trades at EV/EBITDA of 2.5x (discounted to peers), P/B of 2.0x, P/S of 34.9x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.

We assign a Low uncertainty rating to Sprott Physical Gold & Silver Trust. The company exhibits strong financial stability with a beta of 0.20, conservative leverage (0% D/E), and a stability factor in the 49th percentile. The predictable nature of the business model and solid financial position reduce the range of potential outcomes, giving us confidence in our fair value estimate.

Specific risk factors that inform our assessment include: low beta of 0.20 — while defensive, this may indicate limited upside participation in bull markets. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 49th percentile and quality factor at the 75th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: healthy gross margins of 100% provide a buffer against cost pressures; conservative leverage (0% D/E) limits balance sheet risk. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.

We rate Sprott Physical Gold & Silver Trust's capital allocation as Exemplary. Management demonstrates a strong track record of balancing reinvestment with shareholder returns, evidenced by returns on equity of 81.1%, disciplined leverage (0% D/E), best-in-class net margins of 1383.2%. Exemplary allocators typically generate returns on equity above 20% while maintaining debt-to-equity below 50% — Sprott Physical Gold & Silver Trust meets this high bar.

The balance sheet remains conservatively managed, providing financial flexibility for opportunistic investments while maintaining a margin of safety for shareholders. We note that the combination of 81.1% return on assets and controlled leverage suggests management is deploying capital at rates well above the cost of capital — the hallmark of exemplary stewardship.

In summary, Sprott Physical Gold & Silver Trust receives a Hold rating with a composite score of 60.3/100 (rank #658 of 7,333). Our quantitative framework assigns a Narrow Moat (61/100, trend: widening), Low uncertainty, and Exemplary capital allocation. The average factor score across quality, value, momentum, stability, and investment is 56/100.

Our analysis supports a neutral stance on Sprott Physical Gold & Silver Trust. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.