Bryan Wagman
Long/short equity, value, growth at reasonable price, industrials

Esterline: A Great Company Available At A Fair Price

Thesis

With a solid plan to lower costs accompanied by capable management and strong recent performance, Esterline Technologies (NYSE:ESL) appears to have a bright future. But upon looking a little deeper, we come to find that this may already be accounted for in the stock price.

Company Background

Esterline Technolgies designs, manufactures, and markets products to the aerospace and defense industries. These highly engineered products are broken up into three segments of operation: Avionics & Controls, Sensors & Systems, and Advanced Materials. Within these, they address the "Adjacent Applications using A & D technologies", Commercial Aerospace, and Defense markets. Respectively, these markets constitute 20%, 40%, and 40% of the company's revenues. This is a very good balance, especially...

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