$36.69 -0.01 (-0.03%)
11/6/2009 4:01 PM

Oshkosh Corporation (OSK)

CAPS Rating: 2 out of 5

A designer, manufacturer and marketer of a variety of specialty vehicles and vehicle bodies predominately for the North American and European markets.

Recs

3
Member Avatar TMFDitty (99.09) Submitted: 2/5/2008 11:31:57 PM : Outperform Start Price: $40.37 OSK Score: +7.93

It's time to put my CAPS reputation on the line, in line with what I'm writing about Oshkosh (http://www.fool.com/investing/high-growth/2008/01/31/foolish-forecast-oshkosh-backs-up-the-truck.aspx).

What we have here is a stock trading at 12x trailing earnings, 7.5x trailing free cash flow, and when you add in the debt, an enterprise value-to-free cash flow ratio of 15. Not bad for a 22% grower.

Sure, a slowing economy will hurt Oshkosh. Sure, the prospects for MRAP II and JLTV contracts are tenuous at best. But the company is cheap based on its demonstrated long-term earning ability. I'd buy it at today's post-sell-off price.

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