Should you buy Taylor Devices stock? (June 2024)

Published first at https://www.3minutebreakdowns.com Taylor Devices stock analysis. Ticker: $TAYD This micro cap stock is up 150% over the past year but there could be more gains ahead. Taylor Devices makes shock absorbers that are used in buildings, aircraft, satellites and more. At the current price, the company has a market cap of 159 million dollars. With 25 million of cash on the balance sheet and no debt the enterprise value is 135 million. Revenue over the last 12 months comes to 43 million with 8.6 million of net income and 11.8 million of ebitda. So Taylor Devices stock is valued at 19 times earnings, 11 times ebitda and 12 times free cash flow. That valuation is not unreasonable for a company whose execution has greatly improved in recent years. Revenues grew 37% in 2022 and 30% last year with cost reduction and share repurchases more than doubling earnings per share. The company has been able to diversify its revenue by moving into the architectural market, providing seismic dampers for tall buildings that help to mitigate earthquake damage. However, it’s the company;s aerospace and defense segment that has been responsible for the majority of growth. In fact, while Revenue in the structural segment is down 37% over the last three quarters, it’s been more than offset by aerospace demand which climbed over 100% in the latest quarter. And the company’s backlog has continued to advance, hitting over 30 million. #stocks #investing #microcapstocks #3mb