CIX - CompX International: Some Consolidation Needed To Digest Recent Rally

2024-04-25 13:37:58 ET

Summary

• CompX International Inc. has experienced a significant rally in its stock, with shares up over 124% since February 2020.
• The company's dividend yield is currently at 3.77%, which is consistent with its 5-year average yield of 3.72%.
• CompX's dividend growth has been strong, with the annual dividend increasing from $0.28 per share to $1.20 per share, and a recent increase in the quarterly payout.
• Share-price consolidation may be needed over the near-term, however, to digest recent gains.

Intro

We wrote about CompX International Inc. (CIX) in February 2020 when we stamped a 'Buy ' rating on the security & recreational marine-related company. The company's attractive valuation, strong balance sheet, and improving cash-flow trends stood out at the time. In fact, given the strong fundamentals CompX was inherently displaying, we predicted a successful breakout above long-term support. Although the company's growth rates had slowed at the time, we believed that growing equity and sustained cash-flow generation would finally result in a significant upturn in the stock. To this point, CompX's breakout finally took place in early 2021 as we see below with shares going on a violent rally since then....

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