CDRE - Cadre Holdings: Now Is An Excellent Time To Buy This Cash-Generating Growth Company

2024-05-08 07:19:28 ET

Summary

• Cadre Holdings is a market leader in providing safety equipment to first responders, the military, government agencies, and individuals in the US.
• The company has a proven profitable business model, strong positive cash flow, and a near flawless balance sheet.
• Cadre is growing its business through acquisitions of closely related companies and is expected to continue improving its top and bottom lines.
• Cadre is a dividend paying growth company, with the opportunity to capitalize on the current unstable geo-political climate.

Cadre Holdings ( CDRE ), with a proven profitable business model and a near flawless balance sheet, has strong positive cash flow and operates in business verticals that offer repeat sales and a competitive moat to operations. Cadre is a market leader in providing safety equipment to first responders, the military, government agencies, and individuals. It is growing by acquiring closely related companies that either expand the geographical reach of their core products, add new products that can be sold through existing channels or open an entirely new vertical market with the same dynamics as their current ones. The management team has proven ability to build large conglomerates executing an M&A strategy.

Cadre is part of my non-lethal defense segment, which has shown rapid growth recently; Cadre shares went from $16.50 in March 2023 to over $39 by March 2024. A recent pullback to $32 presents an excellent time to buy.

The non-lethal sector I follow consists of four companies that provide defense and survival equipment to government agencies and the general public. Following companies as part of a sector is my preferred method; I try to grasp trends and pick winners. I look to buy into sectors showing growth potential and try to identify a preferred company in each industry....

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