Intrinsic value of U.S. Silica Holdings - SLCA

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$40.51

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$40.51

 
Intrinsic value

$222.55

 
Up/down potential

+449%

 
Rating

str. buy

 
Value-price divergence* premium content

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*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of SLCA stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 3.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -12.91
  33.80
  30.92
  28.33
  26.00
  23.90
  22.01
  20.31
  18.77
  17.40
  16.16
  15.04
  14.04
  13.13
  12.32
  11.59
  10.93
  10.34
  9.80
  9.32
  8.89
  8.50
  8.15
  7.84
  7.55
  7.30
  7.07
  6.86
  6.67
  6.51
  6.36
Revenue, $m
  560
  749
  981
  1,259
  1,586
  1,965
  2,398
  2,884
  3,426
  4,022
  4,672
  5,374
  6,129
  6,934
  7,788
  8,691
  9,641
  10,637
  11,680
  12,769
  13,904
  15,086
  16,316
  17,594
  18,923
  20,304
  21,739
  23,230
  24,781
  26,393
  28,071
Variable operating expenses, $m
 
  135
  169
  210
  259
  315
  379
  451
  531
  619
  715
  795
  907
  1,026
  1,152
  1,286
  1,426
  1,574
  1,728
  1,889
  2,057
  2,232
  2,414
  2,603
  2,800
  3,004
  3,217
  3,437
  3,667
  3,905
  4,154
Fixed operating expenses, $m
 
  518
  531
  544
  557
  571
  586
  600
  615
  631
  646
  663
  679
  696
  714
  731
  750
  768
  788
  807
  828
  848
  869
  891
  913
  936
  960
  984
  1,008
  1,033
  1,059
Total operating expenses, $m
  613
  653
  700
  754
  816
  886
  965
  1,051
  1,146
  1,250
  1,361
  1,458
  1,586
  1,722
  1,866
  2,017
  2,176
  2,342
  2,516
  2,696
  2,885
  3,080
  3,283
  3,494
  3,713
  3,940
  4,177
  4,421
  4,675
  4,938
  5,213
Operating income, $m
  -54
  97
  281
  505
  770
  1,079
  1,433
  1,833
  2,280
  2,772
  3,310
  3,917
  4,543
  5,212
  5,922
  6,673
  7,464
  8,295
  9,164
  10,072
  11,019
  12,006
  13,032
  14,100
  15,210
  16,363
  17,563
  18,809
  20,106
  21,455
  22,858
EBITDA, $m
  14
  196
  404
  655
  953
  1,300
  1,698
  2,147
  2,648
  3,200
  3,803
  4,457
  5,159
  5,908
  6,705
  7,546
  8,433
  9,363
  10,337
  11,355
  12,416
  13,521
  14,671
  15,867
  17,110
  18,403
  19,746
  21,143
  22,595
  24,106
  25,678
Interest expense (income), $m
  22
  22
  34
  49
  66
  86
  110
  137
  167
  201
  238
  279
  322
  369
  420
  473
  529
  588
  650
  715
  783
  854
  927
  1,004
  1,084
  1,167
  1,253
  1,342
  1,435
  1,532
  1,632
Earnings before tax, $m
  -78
  74
  247
  456
  704
  993
  1,323
  1,696
  2,112
  2,571
  3,072
  3,638
  4,221
  4,842
  5,503
  6,201
  6,935
  7,707
  8,514
  9,357
  10,236
  11,152
  12,105
  13,096
  14,126
  15,197
  16,310
  17,467
  18,671
  19,923
  21,226
Tax expense, $m
  -37
  20
  67
  123
  190
  268
  357
  458
  570
  694
  829
  982
  1,140
  1,307
  1,486
  1,674
  1,873
  2,081
  2,299
  2,526
  2,764
  3,011
  3,268
  3,536
  3,814
  4,103
  4,404
  4,716
  5,041
  5,379
  5,731
Net income, $m
  -41
  54
  180
  333
  514
  725
  966
  1,238
  1,542
  1,877
  2,242
  2,656
  3,081
  3,535
  4,017
  4,526
  5,063
  5,626
  6,215
  6,831
  7,472
  8,141
  8,836
  9,560
  10,312
  11,094
  11,906
  12,751
  13,630
  14,544
  15,495

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  711
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  2,073
  1,823
  2,387
  3,063
  3,859
  4,781
  5,833
  7,018
  8,336
  9,786
  11,367
  13,077
  14,912
  16,871
  18,949
  21,145
  23,456
  25,881
  28,418
  31,068
  33,830
  36,706
  39,698
  42,808
  46,041
  49,401
  52,893
  56,522
  60,294
  64,218
  68,300
Adjusted assets (=assets-cash), $m
  1,362
  1,823
  2,387
  3,063
  3,859
  4,781
  5,833
  7,018
  8,336
  9,786
  11,367
  13,077
  14,912
  16,871
  18,949
  21,145
  23,456
  25,881
  28,418
  31,068
  33,830
  36,706
  39,698
  42,808
  46,041
  49,401
  52,893
  56,522
  60,294
  64,218
  68,300
Revenue / Adjusted assets
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
Average production assets, $m
  754
  1,009
  1,320
  1,694
  2,135
  2,645
  3,227
  3,882
  4,611
  5,413
  6,288
  7,234
  8,250
  9,333
  10,483
  11,698
  12,976
  14,318
  15,721
  17,187
  18,715
  20,306
  21,961
  23,682
  25,470
  27,329
  29,261
  31,268
  33,355
  35,526
  37,784
Working capital, $m
  783
  106
  138
  177
  224
  277
  338
  407
  483
  567
  659
  758
  864
  978
  1,098
  1,225
  1,359
  1,500
  1,647
  1,800
  1,960
  2,127
  2,301
  2,481
  2,668
  2,863
  3,065
  3,275
  3,494
  3,721
  3,958
Total debt, $m
  516
  777
  1,105
  1,499
  1,962
  2,499
  3,111
  3,800
  4,567
  5,411
  6,331
  7,327
  8,395
  9,535
  10,745
  12,023
  13,368
  14,779
  16,255
  17,797
  19,405
  21,079
  22,820
  24,630
  26,512
  28,468
  30,500
  32,612
  34,807
  37,091
  39,466
Total liabilities, $m
  800
  1,061
  1,389
  1,783
  2,246
  2,783
  3,395
  4,084
  4,851
  5,695
  6,615
  7,611
  8,679
  9,819
  11,029
  12,307
  13,652
  15,063
  16,539
  18,081
  19,689
  21,363
  23,104
  24,914
  26,796
  28,752
  30,784
  32,896
  35,091
  37,375
  39,750
Total equity, $m
  1,273
  762
  998
  1,280
  1,613
  1,999
  2,438
  2,933
  3,484
  4,090
  4,751
  5,466
  6,233
  7,052
  7,921
  8,839
  9,805
  10,818
  11,879
  12,986
  14,141
  15,343
  16,594
  17,894
  19,245
  20,650
  22,109
  23,626
  25,203
  26,843
  28,549
Total liabilities and equity, $m
  2,073
  1,823
  2,387
  3,063
  3,859
  4,782
  5,833
  7,017
  8,335
  9,785
  11,366
  13,077
  14,912
  16,871
  18,950
  21,146
  23,457
  25,881
  28,418
  31,067
  33,830
  36,706
  39,698
  42,808
  46,041
  49,402
  52,893
  56,522
  60,294
  64,218
  68,299
Debt-to-equity ratio
  0.405
  1.020
  1.110
  1.170
  1.220
  1.250
  1.280
  1.300
  1.310
  1.320
  1.330
  1.340
  1.350
  1.350
  1.360
  1.360
  1.360
  1.370
  1.370
  1.370
  1.370
  1.370
  1.380
  1.380
  1.380
  1.380
  1.380
  1.380
  1.380
  1.380
  1.380
Adjusted equity ratio
  0.413
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -41
  54
  180
  333
  514
  725
  966
  1,238
  1,542
  1,877
  2,242
  2,656
  3,081
  3,535
  4,017
  4,526
  5,063
  5,626
  6,215
  6,831
  7,472
  8,141
  8,836
  9,560
  10,312
  11,094
  11,906
  12,751
  13,630
  14,544
  15,495
Depreciation, amort., depletion, $m
  68
  99
  123
  151
  183
  221
  265
  314
  368
  428
  493
  540
  616
  696
  782
  873
  968
  1,068
  1,173
  1,283
  1,397
  1,515
  1,639
  1,767
  1,901
  2,039
  2,184
  2,333
  2,489
  2,651
  2,820
Funds from operations, $m
  -10
  154
  303
  483
  697
  946
  1,231
  1,552
  1,910
  2,305
  2,736
  3,196
  3,697
  4,231
  4,799
  5,399
  6,031
  6,694
  7,388
  8,113
  8,869
  9,656
  10,475
  11,327
  12,213
  13,133
  14,090
  15,085
  16,119
  17,195
  18,315
Change in working capital, $m
  -10
  27
  33
  39
  46
  53
  61
  69
  76
  84
  92
  99
  106
  114
  120
  127
  134
  141
  147
  154
  160
  167
  173
  180
  187
  195
  202
  210
  219
  227
  237
Cash from operations, $m
  0
  297
  270
  444
  651
  893
  1,170
  1,483
  1,834
  2,221
  2,644
  3,097
  3,590
  4,118
  4,679
  5,272
  5,897
  6,554
  7,241
  7,960
  8,709
  9,490
  10,302
  11,147
  12,025
  12,939
  13,888
  14,874
  15,900
  16,968
  18,078
Maintenance CAPEX, $m
  0
  -56
  -75
  -99
  -126
  -159
  -197
  -241
  -290
  -344
  -404
  -469
  -540
  -616
  -696
  -782
  -873
  -968
  -1,068
  -1,173
  -1,283
  -1,397
  -1,515
  -1,639
  -1,767
  -1,901
  -2,039
  -2,184
  -2,333
  -2,489
  -2,651
New CAPEX, $m
  -47
  -255
  -312
  -374
  -440
  -510
  -582
  -655
  -729
  -802
  -875
  -946
  -1,015
  -1,083
  -1,150
  -1,215
  -1,279
  -1,341
  -1,404
  -1,466
  -1,528
  -1,591
  -1,655
  -1,721
  -1,789
  -1,859
  -1,931
  -2,008
  -2,087
  -2,170
  -2,258
Cash from investing activities, $m
  -202
  -311
  -387
  -473
  -566
  -669
  -779
  -896
  -1,019
  -1,146
  -1,279
  -1,415
  -1,555
  -1,699
  -1,846
  -1,997
  -2,152
  -2,309
  -2,472
  -2,639
  -2,811
  -2,988
  -3,170
  -3,360
  -3,556
  -3,760
  -3,970
  -4,192
  -4,420
  -4,659
  -4,909
Free cash flow, $m
  -202
  -14
  -117
  -28
  84
  223
  390
  587
  815
  1,075
  1,366
  1,681
  2,035
  2,419
  2,832
  3,275
  3,746
  4,244
  4,769
  5,321
  5,898
  6,502
  7,131
  7,787
  8,469
  9,179
  9,917
  10,683
  11,480
  12,308
  13,169
Issuance/(repayment) of debt, $m
  -6
  268
  328
  394
  463
  537
  612
  689
  767
  844
  920
  995
  1,068
  1,140
  1,210
  1,278
  1,345
  1,411
  1,477
  1,542
  1,608
  1,674
  1,741
  1,810
  1,882
  1,955
  2,032
  2,112
  2,196
  2,283
  2,376
Issuance/(repurchase) of shares, $m
  684
  0
  24
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  650
  268
  352
  394
  463
  537
  612
  689
  767
  844
  920
  995
  1,068
  1,140
  1,210
  1,278
  1,345
  1,411
  1,477
  1,542
  1,608
  1,674
  1,741
  1,810
  1,882
  1,955
  2,032
  2,112
  2,196
  2,283
  2,376
Total cash flow (excl. dividends), $m
  449
  254
  211
  365
  548
  760
  1,003
  1,277
  1,582
  1,919
  2,286
  2,677
  3,103
  3,559
  4,042
  4,553
  5,091
  5,655
  6,246
  6,863
  7,506
  8,176
  8,873
  9,598
  10,351
  11,134
  11,949
  12,795
  13,676
  14,592
  15,545
Retained Cash Flow (-), $m
  -889
  -193
  -236
  -283
  -333
  -385
  -440
  -495
  -551
  -606
  -661
  -715
  -767
  -819
  -869
  -918
  -966
  -1,013
  -1,061
  -1,107
  -1,155
  -1,202
  -1,251
  -1,300
  -1,351
  -1,404
  -1,459
  -1,517
  -1,577
  -1,640
  -1,706
Prev. year cash balance distribution, $m
 
  704
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  765
  0
  83
  215
  374
  563
  782
  1,031
  1,312
  1,625
  1,962
  2,336
  2,740
  3,173
  3,635
  4,125
  4,642
  5,185
  5,755
  6,351
  6,974
  7,622
  8,297
  9,000
  9,730
  10,489
  11,278
  12,099
  12,952
  13,838
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  734
  0
  72
  177
  290
  409
  528
  645
  754
  852
  932
  997
  1,042
  1,065
  1,067
  1,048
  1,010
  955
  886
  807
  721
  632
  544
  458
  379
  306
  242
  187
  141
  104
Current shareholders' claim on cash, %
  100
  100.0
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8

U.S. Silica Holdings, Inc. produces and sells commercial silica in the United States. The company operates through two segments, Oil & Gas Proppants and Industrial & Specialty Products. It offers whole grain commercial silica products to be used as fracturing sand in connection with oil and natural gas recovery; and resin coated proppants, as well as sells its whole grain silica products in various size distributions, grain shapes, and chemical purity levels for manufacturing glass products. The company also provides ground commercial silica products for use in plastics, rubber, polishes, cleansers, paints, glazes, textile fiberglass, and precision castings; and fine ground silica for use in premium paints, specialty coatings, sealants, silicone rubber, and epoxies. In addition, it offers other industrial mineral products, such as aplite, a mineral used to produce container glass and insulation fiberglass; and adsorbent made from a mixture of silica and magnesium for preparative and analytical chromatography applications. The company serves oil and gas recovery markets; and industrial end markets with customers involved in the production of glass, building products, foundry products, chemicals, and fillers and extenders. The company, formerly known as GGC USS Holdings, Inc., was incorporated in 2008 and is headquartered in Frederick, Maryland.

FINANCIAL RATIOS  of  U.S. Silica Holdings (SLCA)

Valuation Ratios
P/E Ratio -80.1
Price to Sales 5.9
Price to Book 2.6
Price to Tangible Book
Price to Cash Flow 0
Price to Free Cash Flow -69.8
Growth Rates
Sales Growth Rate -12.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -13%
Cap. Spend. - 3 Yr. Gr. Rate -4.8%
Financial Strength
Quick Ratio 102
Current Ratio 0
LT Debt to Equity 40%
Total Debt to Equity 40.5%
Interest Coverage -3
Management Effectiveness
Return On Assets -1.9%
Ret/ On Assets - 3 Yr. Avg. 4.6%
Return On Total Capital -3.1%
Ret/ On T. Cap. - 3 Yr. Avg. 4.6%
Return On Equity -4.9%
Return On Equity - 3 Yr. Avg. 10.8%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 14.6%
Gross Margin - 3 Yr. Avg. 24.3%
EBITDA Margin 2.1%
EBITDA Margin - 3 Yr. Avg. 13.2%
Operating Margin -9.5%
Oper. Margin - 3 Yr. Avg. 4.9%
Pre-Tax Margin -13.9%
Pre-Tax Margin - 3 Yr. Avg. 1.4%
Net Profit Margin -7.3%
Net Profit Margin - 3 Yr. Avg. 2.8%
Effective Tax Rate 47.4%
Eff/ Tax Rate - 3 Yr. Avg. 23.6%
Payout Ratio -36.6%

SLCA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SLCA stock intrinsic value calculation we used $560 million for the last fiscal year's total revenue generated by U.S. Silica Holdings. The default revenue input number comes from 2016 income statement of U.S. Silica Holdings. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our SLCA stock valuation model: a) initial revenue growth rate of 33.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for SLCA is calculated based on our internal credit rating of U.S. Silica Holdings, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of U.S. Silica Holdings.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of SLCA stock the variable cost ratio is equal to 19.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $505 million in the base year in the intrinsic value calculation for SLCA stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.4% for U.S. Silica Holdings.

Corporate tax rate of 27% is the nominal tax rate for U.S. Silica Holdings. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the SLCA stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for SLCA are equal to 134.6%.

Life of production assets of 13.4 years is the average useful life of capital assets used in U.S. Silica Holdings operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for SLCA is equal to 14.1%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $1273 million for U.S. Silica Holdings - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 80.85 million for U.S. Silica Holdings is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of U.S. Silica Holdings at the current share price and the inputted number of shares is $3.3 billion.


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COMPANY NEWS

▶ Silica Holdings beats Street 1Q forecasts   [Apr-24-17 04:41PM  Associated Press]
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▶ U.S. Silica Acquires New Industrial Roofing Capability   [Apr-04-17 09:00AM  PR Newswire]
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▶ U.S. Silica Declares Quarterly Dividend   [Feb-21-17 09:00AM  PR Newswire]
▶ Eagle Materials, Inc. Builds Another Record Quarter   [Jan-24-17 07:30PM  at Motley Fool]
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▶ 6 stocks to watch   [02:44PM  at MarketWatch]
▶ Should You Buy U.S. Silica Holdings Inc (SLCA)?   [Nov-29-16 03:50PM  at Insider Monkey]
▶ U.S. Silica Declares Quarterly Dividend   [Nov-07-16 09:00AM  PR Newswire]
Stock chart of SLCA Financial statements of SLCA
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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