Magnetek Inc ($MAG) Possible Buy to $20 Confident Investor Rating: Fair

Company name Magnetek Inc
Stock ticker MAG
Live stock price [stckqut]MAG[/stckqut]
P/E compared to competitors Good


Employee productivity Good
Sales growth Poor
EPS growth Fair
P/E growth Good
EBIT growth Good


Confident Investor Rating Good
Target stock price (TWCA growth scenario) $27.58
Target stock price (averages with growth) $24.03
Target stock price (averages with no growth) $16.23
Target stock price (manual assumptions) $19.76

The following company description is from Google Finance:

Magnetek, Inc. (Magnetek) is a provider of digital power control systems that are used to control motion and power primarily in material handling, elevator, and energy delivery applications. Its products are sold directly or through manufacturers’ representatives to original equipment manufacturers (OEM) for incorporation into their products, to system integrators and value-added resellers for assembly and incorporation into end user systems, to distributors for resale to OEMs and contractors, and to end-users for repair and replacement purposes. Magnetek’s systems consist primarily of programmable motion control and power conditioning systems used in the applications, such as overhead cranes and hoists; elevators; coal mining equipment, and renewable energy sources. Its customers include the industrial crane and hoist companies in North America and the elevator builders.


Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Magnetek Inc as long as the price is correct. Most of the fundamentals of Magnetek Inc are good, in fact the company ranks as a Good company, but there are some concerns with the price of the stock.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $18.45

Growth: 0.12

Current EPS (TTM): $1.29

P/E: 14

Future EPS Calc: $2.27

Future Stock Price Calc: $31.82

Target stock price: $19.76

I hope that this makes you a better investor. [/s2If]

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.