Colfax Corp ($CFX) Possible Buy to $78 Confident Investor Rating: Good

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

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $80.68
Target stock price (averages with growth) $89.59
Target stock price (averages with no growth) $41.18
Target stock price (manual assumptions) $78.18

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

Colfax Corporation (Colfax) is a global industrial manufacturing and engineering company. The Company provides gas- and fluid-handling and fabrication technology products and services to commercial and governmental customers worldwide under the Howden and ESAB brand names and by Colfax Fluid Handling. Colfax’s products are marketed principally under the brand names Allweiler, Baric, Fairmount Automation, Houttuin, Imo, LSC, COT-Puritech, Portland Valve, Tushaco, Warren and Zenith. The Company has production facilities in Europe, North America and Asia. It offers customized fluid handling solutions to meet individual customer needs. In February 2011, the Company acquired Rosscor Holding B.V. In December 2011, it acquired COT-PURITECH. On January 13, 2012, Colfax acquired Charter International plc. In May 2012, the Company acquired 91% interest in Soldex S.A. In April 2014, Colfax Corporation completed the acquisition of Victor Technologies Holdings Inc from Irving Place Capital.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Colfax Corp.

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: $52.26
  • Growth: 0.2
  • Current EPS (TTM): $2.53
  • P/E: 20
  • Future EPS Calc: $6.29
  • Future Stock Price Calc: $125.9
  • Target stock price: $78.17

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

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