Colfax Corp ($CFX) Cautious Buy or Hold to $29 Confident Investor Rating: Fair

Company name Colfax Corp
Stock ticker CFX
Live stock price [stckqut]CFX[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $40.65
Target stock price (averages with growth) $32.82
Target stock price (averages with no growth) $14.83
Target stock price (manual assumptions) $27.94

The following company description is from Google Finance: http://www.google.com/finance?q=cfx

Colfax Corporation is an industrial manufacturing and engineering company. The Company provides gas and fluid-handling and fabrication technology products and services to commercial and governmental customers around the world under Howden, ESAB and Colfax Fluid Handling brand names. The Company’s segments include Gas and Fluid Handling, and Fabrication Technology. The Gas and Fluid Handling segment supplies a range of products, including heavy-duty centrifugal and axial fans, rotary heat exchangers, gas compressors, pumps, fluid-handling systems and controls and specialty valves, which serves customers in the power generation, oil, gas and petrochemical, mining, marine (including defense), and general industrial and other end markets. The Fabrication technology segment develops, manufactures and supplies consumable products and equipment for the cutting and joining of steels, aluminum, and other metals and metal alloys.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Colfax Corp as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. I am removing Colfax from my Watch List.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Colfax Corp calculated?

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.
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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: $26.32
  • Growth: 0.12
  • Current EPS (TTM): $1.11
  • P/E: 23
  • Future EPS Calc: $1.95
  • Future Stock Price Calc: $44.99
  • Target stock price: $27.93

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I hope that this makes you a Confident Investor.

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