Silver Lake Resources Limited (ASX:SLR) Has Attractive Fundamentals

Silver Lake Resources Limited (ASX:SLR) 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 SLR, it is a company with great financial health as well as a a strong track record of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Silver Lake Resources here.

Flawless balance sheet with proven track record

SLR 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. Not only did SLR outperformed its past performance, its growth also exceeded the Metals and Mining industry expansion, which generated a 26% earnings growth. This is what investors like to see! SLR is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that SLR has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. SLR currently has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.

ASX:SLR Income Statement Export January 15th 19

Next Steps:

For Silver Lake Resources, I’ve put together three pertinent factors you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for SLR’s future growth? Take a look at our free research report of analyst consensus for SLR’s outlook.

2. Valuation: What is SLR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SLR is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SLR? 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 editorial-team@simplywallst.com.