LMI Aerospace, Inc. (LMIA)

NightBengal (22.40) Submitted: 4/15/08 4:12 PM : Start Price: $18.84 LMIA Score: 8.26

Growth rates outstrip the current P/E by a long shot; 5-year expected PEG is 0.84. This quarter alone, analysts expect 60%+ growth over last year, with 30%+ for the full year. Order backlog grew almost 30% last year; there is no shortage of revenue for these guys.


The recent acquisition of D3 is a smart, synergetic move to continue carving their niche. Debt taken on from this acquisition is more than handled with interest coverage almost three times the industry. Management is very confident that this company can continue to grow, and their ~27% inside ownership speaks to this.


Another bonus: Operating costs have remained in line with growth. According to the 2007 full-year conference call, management intends to keep it that way with continued efficiency improvements.

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