$23.68
-1.24 (-4.98%)
Oshkosh Corporation (NYSE:OSK)
CAPS Rating:
A designer, manufacturer and marketer of a variety of specialty vehicles and vehicle bodies predominately for the North American and European markets.
A designer, manufacturer and marketer of a variety of specialty vehicles and vehicle bodies predominately for the North American and European markets.
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Recs
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.