Sherritt International Corporation (S.TO) Stock Analysis & Winston Score

Sherritt International is a Canadian mining and energy company that digs nickel and cobalt out of the ground in Cuba. These metals are used to make batteries, stainless steel, and other industrial products. Sherritt is one of the few Western companies still operating in Cuba, which makes it unusual in its industry. The company earns money by selling refined nickel and cobalt, and it also has a small energy business in Cuba that produces oil and electricity. Sherritt operates almost entirely in Cuba, which creates serious risks — the U.S. embargo limits who Sherritt can do business with, and the Cuban government is a partner in most of its operations. With a tiny market cap, negative operating margins, and heavy exposure to a single politically complicated country, the biggest risk the company faces is whether it can generate enough cash to stay financially stable over the long term.