John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

Lydall Is Undervalued With Improving Fundamentals

Lydall (NYSE:LDL) trades at a low multiple due to the effects of continuing weak European economic growth in one of its core markets and provides an attractive entry point at a cyclical low. The improving margins and cash flow in spite of this top line pressure (due to spending discipline and efficiency initiatives) only strengthens the bullish case. Furthermore, the diversified business model provides operating stability while the strong balance sheet and growing cash flow provide the ability to fund growth opportunities internally.

Company overview

LDL designs and manufactures specialty engineered filtration media, industrial thermal insulating solutions, automotive thermal and acoustical barriers, medical filtration media and devices and biopharmaceutical processing components for thermal/acoustical, filtration/separation and bio/medical applications. LDL...

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