posted by mark
on Fri, 06/08/2018 - 10:52
Take a look at Gentex on CFRA.
I like CFRA because it shows the company's various metrics over a ten year period. You can see the consistency and LT trends clearly. Wall Street focuses too much on the short term because of the pressures they are under, but individuals can take advantage of some of the "crumbs" the big boys have left on the table.
Let's look at what I see in the 10 year period.
- Steady revenue growth. "Got to get it to the top to take it to the bottom!"
- Steady operating income growth. Operating with sufficient cost controls
- Net income growth
- EPS growth - Benefiting owners.
- Some LT debt, but well managed. Always covered more than 1 time with cash. Conservative capital management.
- Return on revenue. Moved up steady from mid-teens to now low 20's. Good cost controls.
- Return on assets - mid teens. Efficiently purchasing and using assets.
- Return on equity. Moved up steady from 8.2% in 2008 ti 20.5% in 2017. Building strong returns.
- Their capital expenditures are usually slightly higher than their Depreciation and Amortization. Not starving their business for assets, but not getting too far ahead of themselves.
- Internationally, diversified. Protection from regional disturbances.
- Customer diversification. Protection from risks of individual customers
Check times 11!
Best of all, they are selling at a PE which is in the mid-teens.
This is one healthy company.
I love when the big boys leave some big crumbs and leftovers on the table. Bon appétit!
