Taylor Devices Inc. Common Stock (TAYD)

FairStock Score: 66/100 — STEADY

Key Financials

Strengths

• Generates $675,618 in annual free cash flow (0.4% yield on market cap)
• Solid return on equity of 16.2% above cost of capital
• Altman Z-Score of 23.9 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($39) with negative 50% margin of safety—limited downside protection

AI Analysis

Taylor Devices Inc. Common Stock is a micro-cap industrials company valued at $191 million. The business generates $48 million in annual revenue with a 5.2% net margin and $675,618 in free cash flow. From a quality standpoint, Taylor shows Altman Z-Score of 23.9 confirms fortress-level solvency and adequate 16% ROE. On valuation, the stock is reasonably priced at 16.3x earnings, with trades above its Graham Number with a negative 50% margin. Growth dynamics show revenue growing at 5.8% and profit growth of 24.8%. Our composite FairStock Score of 66/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $675,618 in annual free cash flow (0.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer