US Silica Holdings Inc (NYSE:SLCA) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of SLCA, it is a financially-robust company with a a great history of performance, trading at a great value. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on U.S. Silica Holdings here.
Undervalued with proven track record
SLCA delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, SLCA also outperformed its industry, which also delivered an impressive triple-digit earnings growth. This paints a buoyant picture for the company. SLCA’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that SLCA manages its cash and cost levels well, which is a key determinant of the company’s health. SLCA seems to have put its debt to good use, generating operating cash levels of 0.26x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
SLCA’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of SLCA’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, SLCA’s share price is trading below the group’s average. This supports the theory that SLCA is potentially underpriced.
For U.S. Silica Holdings, I’ve put together three key aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for SLCA’s future growth? Take a look at our free research report of analyst consensus for SLCA’s outlook.
- Dividend Income vs Capital Gains: Does SLCA return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from SLCA as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SLCA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.