Jeffrey Bomchill
Long/short equity, value

WSI Industries: Significant Cash Flow Generation

WSI Industries (NASDAQ:WSCI) is a contract manufacturing company based in Monticello, Minnesota and provides precision contract machining for various markets including recreational vehicles, energy, aerospace and defense, and biosciences. I have written about the company in previous years and believe that it continues to be an attractive investment opportunity given its revenue and earnings growth, growth prospects, strong balance sheet, dividend yield, and attractive valuation. What isn't immediately obvious from reviewing the company's income statement is its ability to generate a significant amount of cash at current business levels, and I will describe how this and other factors make WSCI an even more attractive investment candidate than ever before.

Revenue and Earnings Growth: Last month the company reported...

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