- SCX manufactures a gigantic array of tools that are sold to several industries and to consumers.
- The company does not suffer from ultra low margins but does not have a tremendous moat either.
- Although the company has suffered from volatile revenues, it has consistently increased gross margins and decreased operating expenses.
- With conservative financing, the company does not seem risky in terms of leverage.
- However, its underfunded pension obligations require an unaccounted cash expenditure of $8 million per year.
For further details see:
The Starrett Company Is Selling At A Discount Because Of Its Underfunded Pension Plan