Company Overview
Taylor Devices, Inc. specializes in the design, development, manufacturing, and marketing of shock absorption, rate control, and energy storage devices specifically for machinery, equipment, and structures across the United States, Asia, and international markets. Operating within the Industrials sector as a player in the Specialty Industrial Machinery industry, the company provides essential components such as seismic dampers intended to mitigate structural effects in critical infrastructure. The company currently maintains a market capitalization of $251.93M, generates annual revenue of $47.65M, and employs 135 individuals to execute its operations. These financial figures indicate that Taylor Devices functions as a mid-cap entity with a revenue base that supports a specialized manufacturing footprint, positioning it as a focused operator rather than a large-scale diversified industrial conglomerate.
Financial Health
The company reported revenue of $47.65M, net income of $9.89M, and EBITDA of $12.06M for the trailing twelve months, revealing a cost structure where operating expenses consume approximately 26.7% of gross profit before interest and taxes. Free cash flow stands at $9.89M, a figure that demonstrates significant financial flexibility by showing that the company generates substantial cash after capital expenditures, allowing for potential reinvestment or debt servicing without relying on external financing. Gross margin is 46.1%, indicating a strong pricing power and efficient production process where nearly half of every sales dollar remains after covering the direct costs of goods sold. Operating margin stands at 19.2%, which reflects the efficiency of the management team in controlling overhead expenses and administrative costs relative to total sales. Profit margin is 20.8%, suggesting that after all taxes and interest, the company retains more than one-fifth of its revenue as net earnings, a healthy indicator of overall profitability. The company holds cash of $40.74M against a debt level listed as N/A, implying a highly conservative balance sheet with no reported interest-bearing liabilities to weigh down returns. The current ratio of 10.02 indicates an exceptionally strong short-term liquidity position, meaning the company holds over ten times the current assets necessary to meet its short-term obligations. Return on Equity is 16.1% and Return on Assets is 9.4%, metrics that reveal management is effectively utilizing shareholder equity and total assets to generate significant returns relative to the capital invested in the business.
Valuation Assessment
The trailing P/E ratio is 26.54, while the forward P/E is 16.82, a substantial difference that implies the market expects a significant acceleration in earnings growth or a correction in current pricing that will bring the multiple closer to the forward estimate. The price-to-book ratio is 3.76, indicating that the stock trades at a premium of nearly four times its book value, which suggests the market values the company's intangible assets, brand strength, or growth prospects above its tangible net asset base. The price-to-sales ratio is 5.29, and the EV/EBITDA is 17.52; these alternative valuation metrics suggest the company is priced according to a growth narrative rather than a traditional low-margin industrial multiple, as the EV/EBITDA of 17.52 is relatively high for a small-cap manufacturer. The 52-week high is $90.37 and the 52-week low is $29.50, providing a trading range of approximately $60.87, though the exact current price is not specified in the provided facts, the wide range highlights significant volatility over the past year. The beta value is 0.95, which means the stock's price volatility tracks almost exactly with the broader market movements, exhibiting slightly less sensitivity than the S&P 500 but maintaining a standard level of systematic risk for investors.
Growth & Income
Revenue growth year-over-year is 35.7%, and earnings growth year-over-year is 89.0%, clearly showing that earnings are expanding at a rate nearly three times faster than revenue, which typically implies expanding margins or one-time income events contributing to the bottom line. The company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, indicating that the firm chooses to reinvest all of its earnings into business expansion, R&D, or balance sheet strengthening rather than distributing cash to shareholders. This strategy of retaining earnings aligns with the high growth rates observed, as capital is deployed internally to fuel the rapid expansion seen in the 89.0% earnings increase. Overall, the growth and income profile is defined by aggressive internal reinvestment and exceptional earnings acceleration, rather than providing current income through a dividend stream.