Added to YB: 2023-06-09
Pitch date: 2023-06-08
SVT [neutral]
Servotronics, Inc.
Author Info
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Company Info
Servotronics, Inc. manufactures servo valves for aerospace applications. The company offers single and two-stage servo valves, electro-hydraulic and pneumatic servo valves, and specialized servo valves for various systems.
Market Cap
$119.3M
Pitch Price
N/A
Price Target
N/A
Dividend
N/A
EV/EBITDA
271.43
P/E
-118.01
EV/Sales
2.66
Sector
Electrical Equipment
Category
special_situation
Servotronics - Opportunity in a special situation
SVT (pass): Aerospace servo components manufacturer (ATG segment) trading near net asset value of $12.9/share vs $11.90 stock price. Good business masked by unprofitable knife retail segment (CPG) being sold. Activists pushing sale-leaseback of $11.5M industrial property. Boeing/Airbus concentration (50% revenue) drove 80% Boeing revenue drop post-737 MAX crashes. Fixed-price contracts prevent margin recovery despite material cost inflation; burning $1M/quarter ATG cash. Normalized $5M profit = 6x P/E if production recovers 2025-26, but liquidity only 6-9 months without CPG sale or margin improvement. Too much execution risk vs current holdings.
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