CompX International Inc (CIX) stock analysis

P/E above its 5-year median

CompX International's P/E of 23.0 is above its own 5-year median of 15.5.

P/E above the industry

CompX International's P/E of 23.0 is above the Cutlery, Handtools, and General Hardware median of 21.2.

EV/EBITDA above its 5-year median

CompX International's EV/EBITDA of 15.2 is above its 5-year median of 8.1.

P/B above the industry

CompX International's price-to-book of 3.67 is above the Cutlery, Handtools, and General Hardware median of 2.07.

Trading above fair value

The share price of $43.49 is above our fair value estimate of $29.72.

Margin of safety under 20%

The price is 46.3% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -1.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -2.2% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 19.8% over the last twelve months, against a 5-year average of 13.5% a year.

Growing slower than the industry

Revenue grew 4.3% over the last twelve months; the Cutlery, Handtools, and General Hardware median is 4.3%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 32.5% over the last twelve months, against 29.7% a year earlier.

Return on equity under 15%

Return on equity was 16.3% over the last twelve months and averaged 12.1% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 23.4%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

CompX International's return on equity of 16.3% is above the Cutlery, Handtools, and General Hardware median of 13.6%.

Earnings grew over 5 years

Net income grew 13.5% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 14.0% over the last twelve months, against a 5-year average of 12.4%.

Net margin above the industry

CompX International's net margin of 14.0% is above the Cutlery, Handtools, and General Hardware median of 5.5%.

No debt

CompX International has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 5.39 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 17.76; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

CompX International paid dividends worth 2.8% of the share price over the last twelve months.

Yield below Treasuries

The 2.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; CompX International yields 2.8%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 63.9% of net income.

Covered by free cash flow

Dividends take 62.5% of free cash flow.