Electro Scientific Industries, Inc. (NASDAQ:ESIO)
CAPS Rating:
The Company designs and manufactures manufacturing equipment for the global electronics market, including advanced laser systems that are used to microengineer electronic device features in production environments.
RSS Headlines
Fool UK
Recs
I swiped this company from some smart Fools, but so far it hasn't delivered much- up about 3% so far in 7 months. This company is not one I'm well acquainted with, but here's what I see:
It's a newsletter pick so that right there makes it worth a close look. Profit margins are a healthy 9.4%. Forward p/e is 18 and long-term growth estimate is for 15% per year. That doesn't seem like much of a bargain unless the estimates turn out to be incorrect. One Fool says that the P/E looks better when you back out the cash. They have been strongly cash-flow positive the last 3 years or more. From the 1 year chart, ESIO has been gradually trending upward since it low-point in mid-March. They are covered by just 5 analysts, which is fairly small. The most optimistic analyst price target puts them at $27, which would be a close to a 25% gain from here.
Here is a link to their webpage: http://www.esi.com/esi/