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Taylor Devices Is A Great Company, But Trades At An Expensive Price

Feb. 01, 2023 10:57 AM ETTaylor Devices, Inc. (TAYD)8 Comments


  • TAYD specializes in shock-absorbing devices for construction and aerospace uses, among others.
  • The company seems to have a technological moat in these segments. Unfortunately, construction is cyclical and aerospace stagnant.
  • With significant operational leverage, the company's earnings move at the rhythm of the construction business cycle.
  • TAYD also has a treasure of a balance sheet, with zero debts and $22 million in cash and securities.
  • Unfortunately, TAYD trades at an exaggerated multiple to cycle average earnings. The company has not shown that this time the cycle would be different.
Welder welding stainless steel big pipe


Taylor Devices (NASDAQ:TAYD) is a designer of shock-absorbing devices, specially dampers for buildings and the aerospace industry, but also for other industrial uses.

The company is a technological leader in the field and it seems to have a moat. However, it suffers

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