- Manufacturing business that seems globally-diversified, deeply-embedded in economic supply chain, and in a market niche, but manufacturing is not typically a high ROIC industry, partly because pricing is very tangible.
- ROIC calculation using NOPLAT rather than EBITDA less Capex due to recent acquisitions. Also excluded excess cash and goodwill and came up with a very impressive after-tax LTM 22.1% ROIC.
- Stock does not seem obviously discounted. Based on ROIC, growth and dividend, shares would be very attractive under 15x NOPLAT and FCF, but trade at 23-24x.
- Shares don't seem obviously expensive either though. If there is good execution and sustained 20%+ ROIC over the next 5-10 years, 23-24x is fine now, but those are big IFs.
- Avoiding the stock for now due to the above and other miscellaneous factors.