I love somewhat obscure and under-followed industrial companies, particularly when they are leaders in their markets and have quality investors like Royce & Associates on board. That said, I find it hard to find a lot of value in Kaydon (KDN) shares today. Although the company has considerable market share and pretty solid margins, the bottom-line return on capital and free cash flow generation just aren't quite where they need to be relative to valuation to make this a must-own right now.
Recent Results May Show More Potential Than It Seems...
Admittedly, Kaydon hasn't been having the best run of late. The once-dynamic wind power business has crumbled, and other sizable markets like factory automation, machine tools,...