Is Sylvania Platinum Limited's (LON:SLP) Latest Stock Performance A Reflection Of Its Financial Health?

Simply Wall St.2021-03-27

Sylvania Platinum's (LON:SLP) stock is up by a considerable 44% over the past three months. Since the market usually pay for a company’s long-term fundamentals, we decided to study the company’s key ...

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Since the market usually pay for a company’s long-term fundamentals, we decided to study the company’s key ...</p>\n\n<a href=\"https://finance.yahoo.com/news/sylvania-platinum-limiteds-lon-slp-044829849.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Sylvania Platinum Limited's (LON:SLP) Latest Stock Performance A Reflection Of Its Financial Health?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Sylvania Platinum Limited's (LON:SLP) Latest Stock Performance A Reflection Of Its Financial Health?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-03-27 12:48 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/sylvania-platinum-limiteds-lon-slp-044829849.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Sylvania Platinum's (LON:SLP) stock is up by a considerable 44% over the past three months. Since the market usually pay for a company’s long-term fundamentals, we decided to study the company’s key ...</p>\n\n<a href=\"https://finance.yahoo.com/news/sylvania-platinum-limiteds-lon-slp-044829849.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SLP.UK","symbol_name":"SYLVANIA PL","start_time":0,"source_url":"https://finance.yahoo.com/news/sylvania-platinum-limiteds-lon-slp-044829849.html","article_id":"2122075774","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/CPp5AsVCC66fZ8udCWjFUA--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://s.yimg.com/uu/api/res/1.2/gXqEuT8sMv3dkj_dXsv9Uw--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/15d86b06753ea10fbf3763badd0d17cd"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2122075774","pubTimestamp":1616820509,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Sylvania Platinum's (LON:SLP) stock is up by a considerable 44% over the past three months. Since th","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"SLP.UK":"SYLVANIA PL","SAPLF":"Sylvania Platinum Limited"},"translate_title":"Sylvania Platinum Limited（LON：SLP）的最新股票表现是否反映了其财务状况？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SAPLF":1,"SLP.UK":1},"content_text":"Sylvania Platinum's (LON:SLP) stock is up by a considerable 44% over the past three months. Since the market usually pay for a company’s long-term fundamentals, we decided to study the company’s key performance indicators to see if they could be influencing the market. Specifically, we decided to study Sylvania Platinum's  ROE in this article. \n Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. Simply put, it is used to assess the profitability of a company in relation to its equity capital. \n Check out our latest analysis for Sylvania Platinum \n How Is ROE Calculated? \n The formula for return on equity is: \n Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity \nSo, based on the above formula, the ROE for Sylvania Platinum is:\n30% = US$58m ÷ US$195m (Based on the trailing twelve months to December 2020).\n The 'return' is the amount earned after tax over the last twelve months. That means that for every £1 worth of shareholders' equity, the company generated £0.30 in profit. \n Why Is ROE Important For Earnings Growth? \n So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or \"retains\", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. \n Sylvania Platinum's Earnings Growth And 30% ROE \n First thing first, we like that Sylvania Platinum has an impressive ROE. Additionally, the company's ROE is higher compared to the industry average of 18% which is quite remarkable. So, the substantial 53% net income growth seen by Sylvania Platinum over the past five years isn't overly surprising. \n As a next step, we compared Sylvania Platinum's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 26%. \n\n\n\n  AIM:SLP Past Earnings Growth March 27th 2021\n \n\n The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. If you're wondering about Sylvania Platinum's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. \n Is Sylvania Platinum Efficiently Re-investing Its Profits? \n Sylvania Platinum has a really low three-year median payout ratio of 11%, meaning that it has the remaining 89% left over to reinvest into its business. So it seems like the management is reinvesting profits heavily to grow its business and this reflects in its earnings growth number. \n While Sylvania Platinum has been growing its earnings, it only recently started to pay dividends which likely means that the company decided to impress new and existing shareholders with a dividend. \n Conclusion \n Overall, we are quite pleased with Sylvania Platinum's performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices. Not to forget, share price outcomes are also dependent on the potential risks a company may face. So it is important for investors to be aware of the risks involved in the business. You can see the 1 risk we have identified for Sylvania Platinum by visiting our risks dashboard for free  on our platform here. \nThis article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.Have feedback on this article? Concerned about the content? Get in touch with us directly. 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