Taylor Devices Inc. Common Stock (TAYD)

FairStock Score: 66/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a patient value investor, so I begin with the business and the price. Taylor Devices is a small, focused maker of shock absorption, rate control, and energy storage devices for structures, defense, aerospace, and machinery. It has 134 employees and a specialized niche, but the numbers do not show a wide-moat compounder: FairStock calculations put return on equity at 9.93% and return on capital employed at 4.24%, both modest. Financial health looks decent, with a Piotroski F-score of 3/9—weak—yet an Altman Z-score of 24.55, which suggests very low bankruptcy risk. Free cash flow is positive at $4.9 million trailing, but the FCF yield is only 2.7%. Growth has been uneven. The Lynch category computed from filed annual results is FAST GROWER, based on 51.8% annual profit growth and 13.1% revenue growth over five years. However, in fiscal 2026, ended 2026-05-31, revenue was $41.6 million and net income was $8.6 million, down from fiscal 2025 revenue of $46.3 million and net income of $9.4 million. More troubling, in fiscal Q1 2027, ended 2026-08-31, revenue was $7.3 million and net income was $456,933, or $0.14 per diluted share, versus fiscal Q1 2026 revenue of $9.9 million and net income of $2.2 million, or $0.70 per diluted share. At the 2026-10-13 close of $56.33, FairStock calculations show a P/E of 27.21, P/B of 2.48, EV/EBITDA of 19.50, and a Graham Number of $32.44—a negative margin of safety of 73.64%. The market is paying a premium for a business whose recent filing weakened. I would want evidence that the decline is temporary and that returns on capital improve before calling this a bargain.

In plain English: Taylor Devices makes shock absorbers and energy-control devices used in buildings, defense, aerospace, and machinery. The company has been profitable, but its latest filed quarter showed much lower sales and earnings than a year earlier. At the recent price, the shares look expensive compared with the company's current earnings and asset value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-08-31) · fiscal Q3 2026 10-Q (period ended 2026-02-28) · fiscal Q2 2026 10-Q (period ended 2025-11-30) · fiscal Q1 2026 10-Q (period ended 2025-08-31) · FY2026 10-K (period ended 2026-05-31) · FY2025 10-K (period ended 2025-05-31) · FY2024 10-K (period ended 2024-05-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer