(Year End: June 30th)
May 22 2009
(Q3 2009 Data)
1.Major Business.
Tools manufacturer since 1880. Products includes over 5000 kinds of Tools.
2.Price/Book ratio.
Recent Price: $8.40. Book value around $23. Book value with current asset-total liability is: $8.99. Net Net working capital.
3.Current ratio. Debt/Current Asset ratio. Debt maturity and interest. Inventory level.
2008 revenue around $240m. Current Asset: $119m. Current liability $30m. Total liability: $60m. Total Debt: $20.5m. Inventory 63m.
Inventory Adjustment if using FIFO instead of LIFO.
Year
1998 24.0m
1999 23.5m -0.5m
2000 22.7m -0.8m
2001 22.7m 0.0m
2002 23.8m 1.2m
2003 23.2m -0.6m
2004 20.1m -3.1m
2005 21.8m 1.7m
2006 24.0m 2.2m
2007 28.4m 4.4m
2008 27.5m -0.9m
2009Q1 29.3m 1.8m
2009Q2 32.3m 3.0m
2009Q3 33.8m 1.5m
4.P/E ratio. Deficit check. Price/Sales ratio.
Average earning for last 5 years is ($1.64+$1.00+$-0.46+$0.28+0.02)/5=$0.50. 10 year average earning is around $0.75.
Year 2006, 2003, 2002 are deficit.
Sales/Price: around 4:1.
5.Dividend history.
2002: $0.80, 2003:0.70, 2004-2007: $0.40, 2008: $0.52, Current: 0.12/quarter.
6.Cash flow
FCF for Past 5 years 5.5+12.0-9.0+4.0+3.0 = 15.5m.
Devidend for 5 years 3.4+2.7+2.7+2.7+2.7+2.7= 14.2m
7.Grows related.
Revenue grew from $180m in 2004 to $240m in 2008. This includes some acquisitions.
8.SG&A, Employee Compensations.
SG&A grew from $52m in 2004 to $63m in 2008. from 29% of revenue to 26% of revenue.
9.Management compensation. Options.
Top 4 officer: 2008: $1.1m compare to $1.0m in 2007. Both year has no options.
10.Employee numbers. Revenue/Employee. Compensation/Employee.
June 2007, employees around 2100. June 2008, employees are 2221, Now around 2000(or 1800). Around 53% domestic. Based on 2008 data, Revenue/Employee =$0.11m. Revenue/Empoyee(U.S only) = $0.20m. It is quite low compare to other companies.
11.Industry comparison.
Mitutoyo: Japan company 6000+ product. Revenue in 2006 around $1B. Employee around 2450+2150 at 2006. Seems the number one brand for micrometer. Mainly digital model.
Brown & Sharpe: Part of Hexagon Metrology whose revenue in 2008 is around $1.7B. Employee around 8100.
Fred V. Fowler: US company. Smaller and cheaper
Swiss Precision Instruments(SPI): Swiss company, Cheaper.
12.Buy back, insider holding and trading info.
Class A 5.7m. Class B 0.9m(10 votes/share).
Douglas A. Starrett(CEO) : Class B (44,299+1,545) around 5%.
Trustee(Harold J. Bacon + Douglas A. Starrett + Randall J. Hylek): Class A: 10%, Class B: 23%.
At end of 2008 some buying from insider for price around $10.
Bought back 11,400 share during Jan.-Mar. of 2009.
13.Major events.
Q1-Q3 2009: Revenue around 4m together. Cash flow -5m together.
