Yahoo Finance Why Sylvania Platinum Limited (LON:SLP) Should Have A Place In Your Portfolio
Attractive stocks have exceptional fundamentals. In the case of Sylvania Platinum Limited (AIM:SLP), there’s is a financially-healthy company with a an optimistic growth outlook, not yet factored into the price. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Sylvania Platinum here.
Excellent balance sheet and good value
SLP’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if SLP’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the metals and mining industry, SLP is also trading below its peers, relative to earnings generated. This bolsters the proposition that SLP’s price is currently discounted.
SLP’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that SLP manages its cash and cost levels well, which is a crucial insight into the health of the company. SLP seems to have put its debt to good use, generating operating cash levels of 31.9x 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.
Next Steps:
For Sylvania Platinum, there are three important factors you should look at:
Historical Performance: What has SLP’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 SLP 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 SLP as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SLP? 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 pass 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.
