PCP
PRECISION CASTPARTS CORP
Industrial/Transportation
07/16/2013
Presented
| Date | 07/10/2013 |
| Price | $233.93 |
| Market Cap | $34.20B |
| Ent Value | $38.06B |
| P/E Ratio | 16.68x |
| Book Value | $83.14 |
| Div Yield | 0.1% |
| Shares O/S | 146.08M |
| Ave Daily Vol | 670,000 |
| Short Int | 0.98% |
Current
| Price | $234.95 |
| Market Cap | $32.33B |
| Precision Castparts Corp. manufactures metal components and products worldwide. The company’s Investment Cast Products segment manufactures investment castings for aircraft engines, industrial gas turbine (IGT) engines, airframes, medical prostheses, armament, unmanned aerial vehicles, and other industrial applications. This segment provides aerospace structural castings; aerospace airfoil castings, such as stationary vanes and rotating blades; IGT castings, including artificial hips and knees, landing gear struts, and engine inlets for unmanned aerial vehicles, as well as impellers for pumps and compressors; and other investment casting products. Its Forged Products segment produces components, such as fan discs, compressor discs, turbine discs, seals, spacers, shafts, hubs, and cases; seamless pipe and tubular products; nickel alloy casing and tubular products; high-performance nickel-based alloys; titanium melted and mill products; and revert management solutions. The Airframe Products segment develops and manufactures highly engineered fasteners, fastener systems, aero structures, and precision components. This segment offers bolts, sleeved fastening systems, nuts, nut plates, latches, expandable diameter fasteners, quick release pins, hydraulic fittings, bushings, inserts, collars, and other precision components. The company sells its products through a worldwide network of distributors and independent sales representatives; and by a direct sales and marketing staff. It serves automotive, chemical and petrochemical, medical, industrial process, aerospace, medical prosthesis, satellite launch vehicle, and other general industrial markets. Precision Castparts Corp. was founded in 1949 and is headquartered in Portland, Oregon. |
Highlights
PCP’s Chairman and CEO, Mark Donegan, is one of the best leaders in the business, said the presenter. The company has generated 28% EBIT margins, 18% CAGR, and strong free cash flow and EPS growth under his watch. However, PCP’s reputation has been tarnished over the past 24 months due to quarterly misses (they do not typically provide guidance), poor investor relations/ communication, and a slowdown in acquisitions. He is long shares of PCP, and explained the basis for his investment as follows:
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.