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 excellent future outlook, not yet reflected in the share price. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on U.S. Silica Holdings here.
Undervalued with reasonable growth potential
SLCA is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. 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. Compared to the rest of the energy services industry, SLCA is also trading below its peers, relative to earnings generated. This bolsters the proposition that SLCA’s price is currently discounted.
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 indicates that SLCA has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. SLCA appears to have made good use of debt, producing operating cash levels of 0.27x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For U.S. Silica Holdings, I’ve put together three important aspects you should further examine:
- Historical Performance: What has SLCA’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- 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 email@example.com.