MTSC
MTS Systems Corporation
Industrial/Transportation
01/20/2015
Presented
| Date | 01/15/2015 |
| Price | $71.52 |
| Market Cap | $0.11B |
| Ent Value | $1.08B |
| P/E Ratio | 26.88x |
| Book Value | $17.00 |
| Div Yield | 1.6% |
| Shares O/S | 15.08M |
| Ave Daily Vol | 70,000 |
| Short Int | 4.19% |
Current
| Price | $58.49 |
| Market Cap | $1.13B |
| MTS Systems Corporation supplies test systems and position sensors in the Americas, Europe, and Asia. The company’s Test segment provides testing solutions, including road simulators for durability simulation; tire performance and rolling resistance measurement systems; moving road-plane systems and balances for aerodynamics measurements in wind tunnels; systems for the physical characterization of materials, such as ceramics, composites, and steel; and systems to test durability and performance of implants, prostheses, and other medical and dental materials and devices. This segment also offers products, systems, and software to perform static and fatigue testing of aircraft and space vehicles; systems for structural engineering, including high force static and dynamic testing; and seismic simulation tables to test the designs of structures and establish building codes. In addition, it provides installation, calibration, maintenance, training, and consulting services, as well as various accessories and spare parts. This segment serves automobile, truck, motorcycle, motorsports vehicle, construction equipment, agricultural equipment, rail, and off-road vehicle manufacturers and their suppliers, as well as power generation, aerospace, bio-medical, wind energy, structural engineering, oil and gas, and other industries. The company’s Sensors segment manufactures products utilizing magnetostriction technology for manufacturers of plastic injection molding machines, steel mills, fluid power, oil and gas, medical, wood product processing equipment, mobile equipment, and energy industries. It also offers products to measure fluid displacement for customers in the process industries. The company sells its products through direct sales organization, and independent representatives and distributors, as well as through catalogs. MTS Systems Corporation was founded in 1966 and is headquartered in Eden Prairie, Minnesota. |
Publicly traded companies mentioned herein: MTS Systems Corporation (MTSC)
Highlights
MTS Systems (MTSC) operates two segments. Test is the larger of the two, and provides “highly engineered testing systems and services largely to the R&D and Product Development Groups within automotive, aerospace, energy and infrastructure OEMs worldwide.” The presenter said this service is to test the durability of structures (i.e., simulate a car driving 200k miles in a short period of time), and includes a consultancy that employs engineers to solve custom problems. In addition, MTSC operates a Sensors business, which is focused on the automation of heavy equipment. He is short the stock because designing test systems and maintaining them is an expensive proposition, and management may have erred in its recent switch to a service contract model.
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