U.S. Silica Holdings, Inc. (SLCA) | Investment Case

1. Company Snapshot

1.a. Company Description

U.S. Silica Holdings, Inc.produces and sells commercial silica in the United States.It operates through two segments, Oil & Gas Proppants and Industrial & Specialty Products.

The company offers whole grain commercial silica products to be used as fracturing sand in connection with oil and natural gas recovery, as well as sells its whole grain silica products in various size distributions, grain shapes, and chemical purity levels for the manufacturing of glass products.It also provides various grades of whole-grain round silica to the foundry industry; ground silica and industrial minerals products for various products; and engineered performance materials made from diatomaceous earth (DE), clay, and perlite.In addition, the company offers transportation, equipment rental, and contract labor services.

It serves oilfield services companies, and exploration and production companies that are engaged in hydraulic fracturing, building products, chemicals, fillers and extenders, filtration, glass, recreation, testing industries, and industrial and specialty products end markets.U.S. Silica Holdings, Inc.was incorporated in 2008 and is headquartered in Katy, Texas.

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1.b. Last Insights on SLCA

Positive drivers behind U.S. Silica Holdings, Inc.'s recent developments include the approval of its acquisition by Apollo Funds, with approximately 78% of outstanding shares voted in favor of the merger. This all-cash transaction is expected to close subject to the terms and conditions of the agreement. Additionally, a recent analysis suggests that U.S. Silica has upside potential to its sum of the parts valuation in a potential split, indicating a favorable outlook for the company's assets and operations.

1.c. Company Highlights

Last Price	15.49
Change Percentage	-0.06%
Open	15.49
Previous Close	15.5
Market Cap ( Millions)	1211
Volume	4764754
Year High	16.03
Year Low	10.09
M A 50	15.45
M A 200	12.87

FCF Yield	16.38%
Dividend Yield	0.00%
ROE	19.01%
Debt / Equity	107.58%
Net Debt / EBIDTA	153.72%
Price To Book	1.4
Price Earnings Ratio	8.12
Price To FCF	6.11
Price To sales	0.78
EV / EBITDA	4.32

2. Transcript Summary

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3. NewsRoom

Avantor Set to Join S&P MidCap 400; QuidelOrtho & Schneider National to Join S&P SmallCap 600

Jul -23

Source: prnewswire.com

U.S. Silica's (SLCA) Acquisition by Apollo Gets Shareholders' Nod

Jul -17

Source:

U.S. Silica Announces Stockholder Approval of Acquisition by Apollo Funds

Jul -16

Source: prnewswire.com

STOCKHOLDER INVESTIGATION: The M&A Class Action Firm Investigates Merger of Envestnet, Inc. - ENV

Jul -11

Source: prnewswire.com

U.S. Silica Has Upside To Sum Of The Parts Valuation In A Potential Split

Jul -02

Source: seekingalpha.com

SHAREHOLDER ALERT: Kaskela Law LLC Announces Investigation of U.S. Silica Holdings, Inc. (NYSE: SLCA) Buyout Proposal and Encourages Shareholders to Contact the Firm

Jun -12

Source: prnewswire.com

SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates MGRC, SLCA on Behalf of Shareholders

Jun -11

Source: globenewswire.com

SHAREHOLDER ALERT: The M&A Class Action Firm Investigates the Merger of U.S. Silica Holdings, Inc. - SLCA

Jun -11

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.80%)

6. Segments

Oil and Gas Proppants

Expected Growth: 7.9%

U.S. Silica Holdings, Inc.'s Oil and Gas Proppants segment growth of 7.9% is driven by increasing demand for fracking services, rising oil prices, and growing shale gas production in the U.S. Additionally, the company's strategic expansion into new markets, cost savings initiatives, and investments in logistics and transportation infrastructure have contributed to the segment's growth.

Industrial and Specialty Products

Expected Growth: 4.83%

U.S. Silica Holdings, Inc.'s Industrial and Specialty Products segment growth of 4.83% is driven by increasing demand for specialty silica products in end-markets such as glass, ceramics, and foundry, as well as growing adoption of silica-based products in emerging industries like solar and advanced composites.

7. Detailed Products

Ottawa White

High-purity silica sand used in various applications including glassmaking, foundry, and construction

API Grade Silica Sand

High-quality silica sand used in oil and gas operations for hydraulic fracturing

Industrial Silica Sand

Silica sand used in various industrial applications including filtration, paint, and coatings

Recreational Products

Silica sand used in recreational applications including golf courses, sports fields, and landscaping

Specialty Silica

High-purity silica products used in various specialty applications including cosmetics, pharmaceuticals, and food

8. U.S. Silica Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for U.S. Silica Holdings, Inc. is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for U.S. Silica Holdings, Inc. is low due to the company's strong market position and limited customer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for U.S. Silica Holdings, Inc. is medium due to the presence of multiple suppliers and the company's moderate dependence on them.

Threat Of New Entrants

The threat of new entrants for U.S. Silica Holdings, Inc. is low due to the high barriers to entry in the industry and the company's established market position.

Intensity Of Rivalry

The intensity of rivalry for U.S. Silica Holdings, Inc. is high due to the presence of several competitors in the market and the company's need to maintain its market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	50.27%
Debt Cost	14.71%
Equity Weight	49.73%
Equity Cost	14.71%
WACC	14.71%
Leverage	101.09%

11. Quality Control: U.S. Silica Holdings, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Profire Energy

A-Score: 5.6/10

Value: 5.2

Growth: 7.1

Quality: 8.0

Yield: 0.0

Momentum: 9.5

Volatility: 4.0

1-Year Total Return ->

Ranger Energy Services

A-Score: 5.6/10

Value: 7.8

Growth: 6.3

Quality: 5.5

Yield: 2.0

Momentum: 7.5

Volatility: 4.3

1-Year Total Return ->

NOW

A-Score: 5.2/10

Value: 6.4

Growth: 5.9

Quality: 6.1

Yield: 0.0

Momentum: 7.5

Volatility: 5.3

1-Year Total Return ->

Select Energy Services

A-Score: 4.6/10

Value: 6.6

Growth: 5.9

Quality: 4.2

Yield: 3.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

U.S. Silica Holdings

A-Score: 4.6/10

Value: 8.0

Growth: 6.9

Quality: 5.5

Yield: 0.0

Momentum: 5.0

Volatility: 2.3

1-Year Total Return ->

RPC

A-Score: 4.5/10

Value: 7.0

Growth: 5.8

Quality: 5.1

Yield: 4.0

Momentum: 1.0

Volatility: 4.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-0.69%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

14.71%

U.S. Silica Holdings, Inc. - US90346E1038

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SLCA

1.c. Company Highlights

Average Yield

Medium Volatility

Average Growth

Earnings Miss

Revenues Miss

Fairly Valued

Stable Momentum

Lower Yield

Earnings Beats

Strong Momentum

Expensive

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.80%)

6. Segments

Oil and Gas Proppants

Expected Growth: 7.9%

Industrial and Specialty Products

Expected Growth: 4.83%

7. Detailed Products

Ottawa White

API Grade Silica Sand

Industrial Silica Sand

Recreational Products

Specialty Silica

8. U.S. Silica Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: U.S. Silica Holdings, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

15.49$

Current Price

15.49$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA