Use access key #2 to skip to page content.
$31.42 -0.31 (-0.98%)
1/8/2009 4:00 PM

FLIR Systems, Inc. (FLIR)

CAPS Rating:
***

The Company designs, manufactures and markets thermal imaging and infrared camera systems. Its products are used in a variety of applications in commercial, industrial and government markets, internationally as well as domestically.

View All Commentary (FLIR)

Recs

5

Avatar TheGarcipian (99.19) Submitted: 3/29/08 3:10 PM : Outperform Start Price: $28.00 FLIR Score: 47.63

Makers of infrared & thermal imaging camera systems, I think FLIR is a good company overall, but I think it could see a bit of a bumpy ride over the next few months; thus my extremely short-term call of Thumbs-Up for just the next 3 weeks. To me, the financials look decent, though not barn-burning: Trailing and Forward PEs of 33 & 21, resp. (a little high for this market); a decent PEG value of 1.3; Profit & Operating margins of 17.5% & 24.6% (good numbers); Quarterly Revenue & Earnings Growth of 30.5% & 17.2%; a Current Ratio (Assets to Liabilities) of almost 4; 11.5% of the company owned by insiders (always nice to see that); and a Book Value that falls within my own personal metric of one-seventh of the Stock Value (4.6 vs. 29). At 36.4%, the Debt/Equity is okay for a design and manufacturing company like FLIR Systems. My concern is that, should the market continue to devalue itself and the economy slip further into recession, FLIR may have a harder time making its sales quotas given that those sales will come from governments & municipalities that rely upon tax dollars in order to invest in such equipment. So, I'm taking a short-term, wait-n-see attitude, giving it a marginal Thumbs-Up, but not putting any real-world money into this baby yet. Finally, if the SlowStochastics chart continues as it has over the last 4 months, I may play the ups-n-downs (getting in & out) of this stock instead of holding a long-term position. We'll have to see how it goes...

Report this Post Replies: 1 | Reply | Permalink

Avatar TheGarcipian (99.19) Submitted: 5/23/08 3:48 PM

Recs: 1 | Rec This

Since my last post, FLIR Systems Inc. reported good numbers on 3/31/08, or at least the market apparently thought so. Most of the numbers I quoted above are still in line or better. For example, the Quarterly Revenue & Earnings Growth has grown to 46.8% and 42.1%, respectively -- very nice. The market's rewarding of a higher price for FLIR has pushed its forward and trailing P/E ratios to 27 & 40, respectively, which are fairly high numbers. Indeed, the stock has jumped nearly 10% in just the past 2 days. Based on the P/E ratios alone, at first glance, I'd say that FLIR could not sustain this stock price increase for very long, but other sources (e.g., CAPS' research page for FLIR) shows growth rates in EPS of 25%-35% and Yahoo! Finance shows analysts estimates of growth at around 33% for the year. These numbers are fairly close to the Forward P/E of 27, making for a PEG ratio close to the magic number "1.0". Since it appears this stock could go either way in the very near term (hopefully further up, but probably not) and since I don't have any real skin in this game, I'm going to let this one ride a bit longer before pulling the short-term plug on it.

Report this Post Reply

Featured Broker Partners

Sponsored Links