2024-07-02 09:52:47 ET
Summary
- UFP Technologies, Inc. has long been somewhat of a hidden gem, active in the manufacturing of custom medical components.
- The company acquires AJR Enterprises at a substantial discount, boosting sales and earnings growth potential.
- Valuation multiples have steadily increased over time, with shares trading at a premium in terms of earnings multiples.
- With UFP Technologies trading at fresh highs, I fail to see the appeal as expectations have risen considerably, but the company definitely deserves a spot on my watch list.
Shares of UFP Technologies, Inc. ( UFPT ) have risen to fresh all-time highs here, as investors aggressively price in the solid operating performance of the supplier of medical components. Long having operated under the radar as a small business, somewhat of a hidden gem, valuation multiples have expanded to the point at which shares traded at a huge premium in terms of earnings multiples....
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UFP Technologies: Impressive Has Become Expensive