Taylor Devices, Inc. (TAYD) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

Taylor Devices's EV/EBITDA of 27.1 is above its 5-year median of 8.7.

P/B below the industry

Taylor Devices's price-to-book of 2.56 is below the General Industrial Machinery and Equipment median of 2.84.

Trading above fair value

The share price of $58.25 is above our fair value estimate of $39.70.

Margin of safety under 20%

The price is 46.7% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 1.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 14.0% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -23.6% over the last twelve months, against a 5-year average of 51.8% a year.

Growing slower than the industry

Revenue grew -12.5% over the last twelve months; the General Industrial Machinery and Equipment median is 12.4%.

Company guidance

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

Gross margin slipping

Gross margin was 41.2% over the last twelve months, against 45.8% a year earlier.

Return on equity under 15%

Return on equity was 9.9% over the last twelve months and averaged 13.2% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 19.7%, above the 10% that usually covers the cost of capital.

Return on equity below the industry

Taylor Devices's return on equity of 9.9% is below the General Industrial Machinery and Equipment median of 9.9%.

Earnings grew over 5 years

Net income grew 51.8% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 17.5% over the last twelve months, against a 5-year average of 16.8%.

Net margin above the industry

Taylor Devices's net margin of 17.5% is above the General Industrial Machinery and Equipment median of 8.0%.

No debt

Taylor Devices 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 8.66 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 17.56; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Taylor Devices has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.