Teleflex (TFX): Here is a stock for the average investor to think about, not to study in detail. It's a busy conglomerate, so it's impossible, imo, for the average person to figure out where the sum of the individual businesses is going to take the company. And for somebody who likes a concentrated portfolio, it would be like spending the time and effort to do in depth research on about 4 companies.
My overview shows some of the value criteria don't look tremendously appealing. PSR is low, but not the lowest it's been. Return on equity is creeping up over the past few years, but at 15-16% now, that's not that great, especially as the price to book value is over 2. D/E ratio is improving a bit though.
The company recently missed analyst earnings estimates, and the stock price has come down to a 12 month low.
I evaluate this company by looking in the rear view mirror -g-.
If I were to characterize the past 10-12 year stock price of this company, I'd say it's been very slow, steady upward progress- unexciting progress- until about 1998 when the stock price seems to have begun a more cyclical movement.
I'm starting a very small position in this company. And for only two reasons:
1. The p/e at 14 is at a multiyear low.
2. The company has 25 consecutive years of increased revenues and earnings.
I'm betting the rev. and earnings growth will continue, and the pe multiple will expand (regress to the mean).
fwiw, Paul |
