(Stocks Discussion) SGX: Silverlake Axis (SGX: 5CP)?
Discuss anything about share price, dividends, yield, ratios, fundamentals, technical analysis and if you would buy or sell this stock on the SGX Singapore markets. Do take note that the answers given by our members are just your opinions, so please do your own due diligence before making an investment!
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Provides banking related software services. Servicing some big named customers in the banking sector.
Pretty unloved by investors due to attacks by short sellers previously on its high related party transactions. Company has since lowered that percentage.
Decent recurring revenue through its maintenance and insurance processing businesses.
Company has been buying back shares for the past 1-2 weeks.
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Silverlake Axis's main competency lies in the core banking system industry and insurance. It produces software which is used to run the operations of financial institution. As the core banking system is a critical system for the bank, there is a high risk and high cost nature involved if banks switch from one core banking system product to another. Hence, this is where Silverlake's business moat lies- It is difficult for its customers to switch out.
Silverlake adopts a business model where it sells the software to financial institutions and then charges a recurring annual maintenance fee as a vendor. This model is similar to Sarine Technologies.
Given its business model, Silverlake has been able to generate a consistent EPS and cash flow making it easy to estimate the value of the company because it is least affected by economic cycles.