All construction and manufacturing activities require the transport of liquids and gases. This is done through metallic hoses. Industrial clients require these in all sorts of sizes and construction-material types. This small capital stock from the Miscellaneous Fabricated Products Industry has an amazing product range. It meets exacting specifications from pharmaceutical, refinery, road construction, and other industries. The company has also developed two specialized types of metallic hoses, one of which is able to withstand electric arcing, the other especially designed for fuel transport from storage tanks to dispensers at gasoline stations.
The stock price has ranged between $22.74 and 12.54 over the past year. The end-April price has hovered around $14.76. The Price to Earnings Ratio is just over 17 at this level. The comparable figure for the Miscellaneous Fabricated Products Industry has been 23.06 on a Trailing Twelve Months basis. The Payout Ratio has been a staggering 81.69 during this period for the stock.
The Gross Margin has averaged over 48% over the past four quarters. This is against just 27.35% achieved by the rest of the industry. Stock investors will be pleased to find that this company’s management clearly places profitability ahead of market share. However, there is a clear, long-term approach to the business. Capital spending has grown by nearly 25% over the past five years, against less than 15% for the industry. It is significant that the management has announced a stock buy-back in September 2007.
Let us hear your thoughts below:
