Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

MTS Systems Waiting For A Better Cycle

Industrial test system and sensor manufacturer MTS Systems (NASDAQ:MTSC) is the sort of small company (if over a half-billion dollars in sales is truly small) that just does what it does, year in and year out. As the company's customers operate in cyclical markets, MTS Systems' business inherits some of that cyclicality, but the company reliably delivers very good returns on capital as a byproduct of its strong market share and long customer relationships. With the shares not quite recovered from a post-earnings swoon, there is some value here though it is not a severely undervalued stock at this point.

Fiscal Q2 Basically Consistent With The Trend

MTS Systems reported a 3% decline in fiscal second quarter earnings,...

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