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Taylor Devices, Inc. (referred to herein as the Company, we, us or our ) was incorporated in the State of New York on July 22, 1955 and is engaged in the design, development, manufacture and marketing of shock absorption, rate control, and energy storage devices for use in various types of machinery, equipment and structures. In addition to manufacturing and selling existing product lines, the …
$50.11
$1.01 (-1.98%)
Price from 13 days ago
Margins and capital returns are both well above average: 20.80% operating margin, ROIC at 22.21%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue grew 3.8%, steady but not accelerating. Free cash flow declined 60% despite revenue growth, conversion is weakening.
Free cash flow declined 60% versus the prior year, cash generation momentum has weakened. ROIC dropped from 24.96% to 22.21%, capital efficiency is deteriorating.
15.8x earnings, 28.2x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$48M
▲ +3.8% YoY
Net Income (TTM)
$10M
▲ +4.6% YoY
Op. Margin
21.86%
▼ -0.5pp YoY
ROIC
12.81%
▼ -2.7pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$6M
▼ -59.7% YoY
Op. Cash Flow (TTM)
$9M
▼ -43.5% YoY
Net Debt
-$42M
Net Cash Position
Cash & Equiv.
$42M
5Y CAGR: +10.3%
5Y CAGR: -10.8%
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