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at MarketWatch.com (Jun 8, 2010)
at CNBC.com (Jun 3, 2010)
at MarketWatch.com (May 11, 2010)
Metaldyne Performance Group Is An Under The Radar IPO With Great Margin Expansion
- MPG has expanded its gross, operating, and net margins Y/Y in a big way and I think it is on the front end of more expansion.
- MPG should be able to realize several synergies with its recent combination of its three stand-alone businesses - look for this to drive financials in the short-term.
- MPG moved substantially all of its cash outflows from contractual obligations to 2019, a move that will give it huge operational flexibility.
- A leading provider of highly-engineered components for use in Powertrain and Safety-Critical Platforms for the global light, commercial and industrial vehicle markets.
- 100% to selling shareholder.
- Revenue +4%; 16% gross profit; 10.5 P/E; .4 price-to-sales; -1.1 price-to-tangible book.
- Net income +73% (preparing for IPO), growth can't be sustained. .46% dividend rate, too low to be meaningful.
In A Strongly Recovering Auto Industry, Metaldyne IPO Appears Well Timed
- MPG plans to raise ~$300,000,000 in its impending initial public offering, set for Friday. Lead underwriters include BofA Merrill Lynch, Deutsche Bank and Goldman Sachs.
- Based in Plymouth, Michigan, MPG is a supplier of components for use in safety applications and power trains for industrial, commercial and global light vehicles.
- We are encouraged by the firm’s steadily increasing profits (up from a net loss of ~$31 million in 2012), and net sales. Despite strong competitors, MPG is poised for growth.
- With the gradual recovery of the auto industry, MPG’s business could see a continued uptick. We suggest investors consider buying in.
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Fri, Dec. 12, 7:03 AM
Mon, Dec. 1, 9:41 AM
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