Briggs & Stratton (NYSE:BGG) is the largest manufacturer of small gasoline-powered air-cooled engines for outdoor equipments. Eighty-four percent of the company's sales are to original equipment manufacturers (OEMs) for use in this equipment. Briggs & Stratton also manufactures generators and lawn mowers amongst a multitude of other garden equipments.
Briggs & Stratton maintains a leveraged balance sheet with $226 million in long-term debt. With $188 million of cash on hand, the company can easily cover its fiscal obligations, and the leverage should work in favor of the investor.
As a mature company, Briggs & Stratton has generated exceptionally steady revenues over the past decade. Nonetheless, revenues have declined in eight of the past ten years....
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