National Presto Industries, Inc. (NYSE:NPK)

Yahoo small cap growth, P/S<1. Yield >0. 1 of 7.

crushed expectations on revenue missed expectations on earnings per share gaap esp dropped significently Margins shrank accross the board

Made an outperform pick on 07/06/10 at $78.78
Been up and down. Now recently down. Have kept the pick open 'cause I like following this company and the Dividend 5 Yr Growth Rate is 17.98%!

Now...
http://wiki.fool.com/The_Graham_Number
Formula: Fair value=Sqrt(22.5*EPS*BV) I expanded it a little by also using EPS Normalized and Tangible BV
My current Graham Number Valuation Range for NPK: $80.20 to $81.64

Good company at a good price. I'm tempted to pick up a few shares. If I do I'll post it here.

Share price of $68.22 - $19 per share in net cash equals an effective stock price of 49.22 for a company that earned $6.98 per share last year. That's a P/E of 7.12 for a 10% per year grower. That's goofy.

More adult diaper products will be sold as the population ages, more ammunition as our psychotic corrupt government continues to invade more and more countries. And I love that this company is run by a woman...they have much more common sense and do what needs to be done rather than what props up their ego. Working in Silly-con Valley, I've seen company after company tank by being run by a male who reacts on ego.

Has dropped way to low. Still a great management team w/ a great dividend. I'll take my chances with NPK.

Great stock, no debt, undervalued (future P/E less than 9), awesome dividend.

At the low

super balance sheet, no leverage, continued strong cash flow, strong management, insider ownership.

a rebounding economy should enable it to capture more of the kitchen appliance market. the population continues to age and boomers will need more adult diapers not less but the company must work hard at rebuilding this sector's attractiveness. the need for ammunition for the military will always exist.

Low P/E, good dividend, good yield, no long-term debt
& long-term presence.

Cheap with a good dividend. Sometimes a special dividend too. They treat shareholders well. They care much more about running a good business than they do about making the numbers to impress Wall Street.

As military, a lot of the products (ammunition) are not what are the high expended items in Afghanistan and Iraq. NPK's items will be shot consistently year-over-year as part of standard training doctrine. The focus of defense cuts in the near-term are going to hit Overseas Contingency Operations funding, which main expenses are logistical support (approx $1MM per servicemember in Afghanistan), equipment procurement, and facility construction that has been so utilized by the military (my Marine Corps especially), large weapons system procurement (goodbye F-22, EFV, and F-35 delays), and personnel costs (both cutting the force and skyrocketing pay/benefit/retirement/medical expenses. Simulators are the biggest long-term threat but nothing replaces putting real rounds down range.

I cannot speak for the rest, but it seems to me that babies will consistently be desecrating diapers and consumer product sales will improve as the economy gets back on its feet.

I like this stock as a solid dividend payer with low future volitility.

Companies making inexpensive convenience items are going to have plenty of room to grow as globalization marches on.

http://www.fool.com/investing/general/2011/12/20/small-cap-dividend-dreams.aspx#commentsBoxAnchor

12/16

CEO owns 30% of stocks!!. Conflict of interest is our side.

CEO makes $400k/year. No options or other dilutive shenanigans. Share count only slightly up in the last few years. Very spartan approach to running a company, you'll either be very attracted to her style or bored to tears. -I'm in.
The business:
1.) Adult diapers. -As yet not cash flow positive, turned profitable in '09, likely to lose primary customer (Medline) in '13. -Neutral to negative, may improve if Diesel, trees, and electricity get cheaper...
2.) Housewares. Popcorn poppers, your Grandma's canning stuff, various things you don't really think about. Decent margin on these, most sales come from Wal-Mart. Potentially losing sales to private label brands.
3.) Ammunition. The sell fuzes for rockets, ammunition for 20mm (most all aircraft), 25mm (Bradleys and LAVs), 30mm (Attack helicopters), and 40mm (Grenade launchers). Margin on this stuff is about 30%, and not too variable. The current contract for 40mm with the army goes through 2015, and Presto is one of 2 suppliers. As long as commodity costs don't soar, they'll have a reliable revenue stream. Even with defense cuts, this ammo has to be shot in training, and thus must be replaced. It's expensive, and the threat here is probably simulators with high fidelity in the long term, not necessarily defense cuts.
They just bought a non-lethal ammo company in Arkansas called ALS. This spreads their ammo out a little more into law enforcement, not just military. Estimated at 7.5m in sales, we'll see what they paid, but history says it probably isn't a king's ransom, and they have no debt. Earnings move around a little because all their cash is placed in securities and USG bonds.
Dividend is $1, and they pay a special dividend around March timeframe that raises that yeild to about 7-ish depending on the previous year's performance. That's how the CEO can afford... whatever she buys with it. From my research, not much.
This company isn't going to blow your socks off, but it has averaged a great compounded annual return since 2001 if you factor in dividends. Capital seems to be flowing more toward the munitions side of the business, which returns more money.

Even if earnings drop by 1/3, the multiple is historically much higher than the current 11-ish, so you've go a margin of safety, and you will probably still get a total dividend in the 5s while you wait.

Well run company, good dividend. No one knows about it. Too boring for anyone to care.

The product mix is very entertaining and insulates the company from a downturn in one area of the economy. Also, it is products that need repeated purchases. Strong balance sheet, good dividend.