Founded in 1945, Synalloy Corp (SYNL) reports a market capitalization of $93 million and sells shares at $9.34 per share in the Nasdaq Global Market. The company, which is headquartered in Richmond, VIRGINIA, presents its business model with the following words:
Synalloy Corporation manufactures and sells metals and specialty chemicals in the United States and internationally. The company’s Metals segment offers stainless steel, galvanized, and other alloy pipes and tubes under the BRISMET trade name; liquid storage solutions and separation equipment; and ornamental stainless steel tubes under the ASTI trade name, as well as distributes seamless carbon pipes and tubes. It serves oil and gas, chemical, petrochemical, pulp and paper, mining, power generation, water and waste water treatment, liquid natural gas, brewery, food processing, petroleum, pharmaceutical, automotive and commercial transportation, appliance, architectural, and other heavy industries.
Further, operating income is another excellent feature of SYNL. The company’s operating income grows at 16.25% q/q. It does not matter whether the net income is positive or negative. The company’s net income growth is positive, which I like quite a bit. Net income grew 9.53%. With this is in mind, either you buy shares or not, SYNL is a company to be followed carefully. Also, investors will most likely appreciate that SYNL’s EPS grew a 9%. With this in mind, SYNL is interesting.
I appreciate the company because it reports EV/Free Cash Flow of 6x. I feel that other value investors will love the company’s ability to produce cash flow. Also, SYNL’s EV/operating cash flow is equal to 6x. I cannot understand why the company trades cheaply.
Besides, the price to book value is below 1.5x, which means that SYNL is undervalued. But that’s not all. SYNL’s debt to equity ratio is below 2x. In summary, the debt level is under control or being brought under control.
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