- Enpro has been making bold moves to transition itself to a more R&D-driven, higher-growth, higher-margin business, selling lackluster businesses, and acquiring new business with better growth/margin outlooks.
- In addition to shifting towards higher-growth opportunities, particularly in semiconductors, food, and pharmaceuticals, management is pushing lean initiatives that should drive improved margins in the coming years.
- Management is actively hunting for more higher-growth/higher-margin acquisition targets and has stated a clear willingness to sell additional businesses if performance doesn't improve.
- The investment thesis for Enpro does depend upon a step change in growth and margins, but management's actions have been consistent and coherent, and the shares do offer upside on ongoing execution.
For further details see:
Enpro In The Early Stages Of A Transformation Toward Better Growth And Margins