2024-01-30 12:36:51 ET
Summary
- The company has TTM sales of $256.4 million and is trading at just 3.1x EV/EBITDA and 0.8x price to tangible book value.
- However, this is a cyclical business and annual operating income has dropped into negative territory three times over the past decade.
- In addition, the price to tangible book value ratio has rarely surpassed the current 0.8x level over the past 10 years.
- In my view, this could be a good time for investors to trim or close their positions.
Introduction
In early February 2023, I wrote a bullish article about L.S. Starrett ( SCX ) in which I said that the company was successfully passing on increased costs to customers and the valuation could improve to about 0.8x price to book value over the coming months....
Read the full article on Seeking Alpha
For further details see:
L.S. Starrett Could Be Becoming A Value Trap (Rating Downgrade)