September 28, 2023
Top 10 Stock Silver Lake Strong Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Silver Lake Strong Buy

360 METRICS	September 28, 2023
VALUE
VALUE	48
GROWTH
GROWTH	39
SAFETY
SAFETY	92
SENTIMENT
SENTIMENT	86
360° VIEW
360° VIEW	87

ANALYSIS: With an Obermatt 360° View of 87 (better than 87% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock Silver Lake are very positive. The 360° View is based on consolidating four consolidated indicators, with half below and half above average for Silver Lake. The consolidated Sentiment Rank has a good rank of 86, which means that professional investors are more optimistic about the stock than for 86% of alternative investment opportunities. It also rates well regarding its financing structure, with the consolidated Safety Rank at 92 or better than 92% of its peers when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. But the stock is expensive and expects low growth. The consolidated Value Rank is only 48, meaning that the share price of Silver Lake is on the high side, compared with indicators such as revenues, profits, and invested capital. The company exhibits below-average growth momentum when looking at financial metrics such as revenue, profit, invested capital growth,and stock returns, with its Growth Rank at 39. ...read more

RECOMMENDATION: With a consolidated 360° View of 87, Silver Lake is better positioned than 87% of all alternative stock investment opportunities based on the Obermatt Method. As only half of the consolidated Obermatt Ranks exhibit excellent performance, namely the positive professional market sentiment (Sentiment Rank of 86) and safe financing practices (Safety Rank of 92), the case for investing in this stock needs further thought. The Value and the Safety Ranks are below average. The Safety Rank is the least critical of the four consolidated ranks, because it only reflects financing practices. So the question is: How to assess below-average value against above-average sentiment? This may be a case where growth is in the future, not yet reflected in current performance. Companies that might fall into this category are those with intellectual property, such as technology and pharmaceutical companies. In early phases, they are expensive relative to their size and have a lot of capital on their books, as is the case here. Investors expect a better future and are willing to pay a higher price than is warranted by the current company size. These higher prices drive stock price value down in the short term. In this case, future growth may be the strongest driver of the investment case, reflected by institutional investors' opinions. With a weak Value Rank, the question is how much to sacrifice value at the cost of positive sentiment. Sometimes market sentiment is just hype, but sometimes it is right. You pay more than market-average for this stock, but it may be worth it, if the future of Silver Lakẹ is bright. Prudent investors may only want to invest a smaller portion of their wealth in such situations. Young investors can carry more risk but should still thrive for sufficient diversification. ...read more

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Sentiment Strategy: Professional Market Sentiment for Silver Lake very positive

SENTIMENT METRICS	September 28, 2023
ANALYST OPINION
ANALYST OPINION	88
OPINIONS CHANGE
OPINIONS CHANGE	94
PRO HOLDINGS
PRO HOLDINGS	48
MARKET PULSE
MARKET PULSE	37
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	86

ANALYSIS: With an Obermatt Sentiment Rank of 86 (better than 86% compared with alternatives) for 2023, overall professional sentiment and engagement for the stock Silver Lake is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for Silver Lake. Analyst Opinions are at a rank of 88 (better than 88% of alternative investments), which means that, currently, stock research analysts tend to recommend a stock investment in the company. Analyst Opinions Change is also positive and has a rank of 94 which means that currently, stock research experts are getting even more optimistic about investments in Silver Lake. But Market Pulse has a low rank of 37, which means that the current professional news and professional social networks are on the negative side when discussing this company (more negative news than for 63% of competitors). This is an essential sign of caution, as it could be the forebearer of bad news. Professional Investors are also somewhat absent with a rank of 48, which means that, currently, professional investors hold less stock in this company than in 52% of alternative investment opportunities. Pros tend to invest in other companies. This is expected if the company is of a smaller size (medium or smaller). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 86 (more positive than 86% compared with investment alternatives), Silver Lake has a reputation among professional investors that is significantly higher than that of its competitors. While the general news feeds in the professional market are negative, the analyst recommendations are optimistic about the company, and even increase their ratings despite the negative news. This is an ambiguous situation with positive and negative signals from the professional side. Investors should be on the lookout for negative news but not worry too much about it as long as the overall news is still positive. ...read more

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Value Strategy: Silver Lake Stock Price Value below-average critical

VALUE METRICS	September 28, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	52
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	52
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	85
DIVIDEND YIELD
DIVIDEND YIELD	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	48

ANALYSIS: With an Obermatt Value Rank of 48 (worse than 52% compared with alternatives), Silver Lake shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Silver Lake. Price-to-Sales (P/S) is 52, which means that the stock price compared with what market professionals expect for future sales is lower than for 52% of comparable companies, indicating a good value regarding Silver Lake's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 52% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 85. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 1% of all competitors have even lower dividend yields than Silver Lake (a Dividend Yield Rank of 1). 99% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 48, is a hold recommendation based on Silver Lake's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. ...read more

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Growth Strategy: Silver Lake Growth Momentum low

GROWTH METRICS	September 28, 2023
REVENUE GROWTH
REVENUE GROWTH	63
PROFIT GROWTH
PROFIT GROWTH	77
CAPITAL GROWTH
CAPITAL GROWTH	25
STOCK RETURNS
STOCK RETURNS	15
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	39

ANALYSIS: With an Obermatt Growth Rank of 39 (better than 39% compared with alternatives), Silver Lake shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Silver Lake. Sales Growth has a rank of 63, which means that, currently, professionals expect the company to grow more than 63% of its competitors. Profit Growth with a rank of 77 is also above average. But Capital Growth has only a rank of 25, and Stock Returns with 15 are also below-average. Stock returns for Silver Lake have recently been below 85% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 39, is a hold recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Silver Lake. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. ...read more

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Safety Strategy: Silver Lake Debt Financing Safety very solid

SAFETY METRICS	September 28, 2023
LEVERAGE
LEVERAGE	86
REFINANCING
REFINANCING	73
LIQUIDITY
LIQUIDITY	67
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	92

ANALYSIS: With an Obermatt Safety Rank of 92 (better than 92% compared with alternatives) for 2023, the company Silver Lake has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Silver Lake is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Silver Lake. Leverage is at 86, meaning the company has a below-average debt-to-equity ratio. It has less debt than 86% of its competitors. Refinancing is at a rank of 73, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 73% of its competitors. Finally, Liquidity is also good at a rank of 67, which means that the company generates more profit to service its debt than 67% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 92 (better than 92% compared with alternatives), Silver Lake has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. ...read more

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Combined financial peformance: Silver Lake Above-Average Financial Performance

COMBINED PERFORMANCE	September 28, 2023
VALUE
VALUE	48
GROWTH
GROWTH	39
SAFETY
SAFETY	67
COMBINED
COMBINED	71

ANALYSIS: With an Obermatt Combined Rank of 71 (better than 71% compared with investment alternatives), Silver Lake (Gold Production, Australia) shares have above-average financial characteristics compared with similar stocks. Shares of Silver Lake are low in value (priced high) with a consolidated Value Rank of 48 (worse than 52% of alternatives) and show below-average growth (Growth Rank of 39) but are safely financed (Safety Rank of 92), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 71, is a buy recommendation based on Silver Lake's financial characteristics. As the company Silver Lake's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 48) and low growth (Obermatt Growth Rank of 39), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 92) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. ...read more

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