CFX
Colfax Corporation
Industrial/Transportation
01/20/2015
Presented
| Date | 01/15/2015 |
| Price | $44.84 |
| Market Cap | $5.55B |
| Ent Value | $7.15B |
| P/E Ratio | 16.35x |
| Book Value | $26.90 |
| Div Yield | N/A |
| Shares O/S | 123.69M |
| Ave Daily Vol | 1,140,000 |
| Short Int | 7.14% |
Current
| Price | $39.83 |
| Market Cap | $2.22B |
| Colfax Corporation, a diversified industrial manufacturing and engineering company, provides gas-and fluid-handling and fabrication technology products and services to commercial and governmental customers worldwide. The company operates in two segments, Gas and Fluid Handling, and Fabrication Technology. The Gas and Fluid Handling segment designs, manufactures, installs, and maintains gas- and fluid-handling products for various markets, including power generation, oil, gas and petrochemical, mining, marine, defense, and general industrial and other markets. This segment supplies a range of products comprising pumps, fluid-handling systems and controls, specialty valves, heavy-duty centrifugal and axial fans, rotary heat exchangers, and gas compressors. It also provides repair and retrofit services for products manufactured by other valve suppliers. In addition, this segment provides lubrication system equipment and services, including LubriMist oil mist generators, Mistlock bearing lubrication cartridges, and ThermoJet oil purifiers, as well as various services, such as high velocity oil flushing, leakage oil reclamation, and condition monitoring services. It markets its products primarily under the Howden and Colfax Fluid Handling brand names, as well as Allweiler, Imo, and Total Lubrication Management brand names. The Fabrication Technology segment formulates, develops, manufactures, and supplies consumable products and equipment primarily under the ESAB brand for use in the cutting and joining of steels, aluminum, and other metals and metal alloys. Its ESAB range of welding consumables includes electrodes, cored and solid wires, and fluxes. The company markets its products through direct sales and third-party distribution channels. Colfax Corporation was founded in 1860 and is headquartered in Fulton, Maryland. |
Publicly traded companies mentioned herein: Colfax Corp (CFX), Danaher Corporation (DHR), Gazprom OAO (GAZP RM), Illinois Tool Works Inc (ITW), Petroleo Brasileiro Petrobras SA (PBR), Royal Dutch Shell Plc (RDSA LN)
Highlights
After peaking in the mid-$70s during late June/ early July 2014, shares of Colfax (CFX) have declined to the mid-$40s. The presenter is short the stock, and believes shares are likely to remain under pressure because “the company is exposed to all the wrong end markets (oil and gas, power generation and mining) and geographies.” Bulls and the media often cite the Danaher (DHR)-like potential CFX must have due to the hiring of former DHR executives and the Colfax Business System (CBS). The presenter doesn’t see it and is forecasting earnings well below the Street’s expectations.
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