Breaking Down Taylor Devices, Inc. (TAYD) Financial Health: Key Insights for Investors

Are you keeping a close watch on Taylor Devices, Inc. (TAYD) and wondering about its financial stability? As of fiscal year 2024, the company reported a significant revenue increase of 10.90%, reaching $44.58 million compared to the previous year's $40.20 million. What's more, earnings soared to $9.00 million, marking a substantial 43.12% increase. But how sustainable is this growth, and what are the key factors driving TAYD's financial health? Dive in to uncover critical insights that can inform your investment decisions.

Taylor Devices, Inc. (TAYD) Revenue Analysis

Understanding Taylor Devices, Inc.'s financial health begins with a detailed look at its revenue streams. The company operates in the specialized industrial machinery sector, focusing on shock absorption, rate control, and energy storage devices. These products cater to a diverse range of industries, including aerospace/defense, structural construction, and general industrial applications. Here's a breakdown of [Company Name]'s revenue composition:

• Primary Revenue Sources: Taylor Devices generates revenue primarily from the sale of its specialized shock absorption, rate control, and energy storage devices. These products are used in machinery, equipment, and structures across various sectors.
• Products: Key products include seismic dampers, Fluidicshoks, and crane and industrial buffers.
• Services: The company also likely generates revenue from after-sales services, maintenance, and customization of its products, although specific details are not available in the provided context.
• Regions: Taylor Devices serves customers in the United States, Asia, and internationally.

Analyzing the year-over-year revenue growth rate provides insights into the company's performance and market position. Here’s how Taylor Devices, Inc. has performed in recent years:

• In the fiscal year ending June 29, 2024, Taylor Devices reported annual revenue of $44.58 million, representing a 10.90% increase compared to the previous year.
• The revenue for the last twelve months is $32.10 million, which is a -1.02% decrease.
• For the nine months ended February 29, 2024, net revenues increased by 10% to $32.5 million.

The contribution of different business segments to [Company Name]'s overall revenue highlights the areas of strength and potential vulnerability.

For the nine months ending February 29, 2024:

• The aerospace/defense sector accounted for 61% of sales.
• Sales in the construction sector decreased by 35%.
• The industrial sector saw a decrease of 18% in sales.

Significant shifts in revenue streams can indicate strategic realignments or market changes. For Taylor Devices, the following points are noteworthy:

• Strategic Realignment: The company has strategically realigned towards the more lucrative aerospace/defense sector, which has shown remarkable growth.
• Market Headwinds: Headwinds in structural markets were experienced due to higher interest rates and unfavorable foreign exchange rates, but were offset by positive momentum in the Aerospace/Defense market.
• Overall Growth: In the first quarter of fiscal year 2025, sales increased by 17% year-over-year, reaching $11.6 million, driven by strength in the Aerospace/Defense markets.

Here’s a summary of Taylor Devices, Inc.'s revenue trends over the past several years:

For more insights into Taylor Devices, Inc.'s values, see : Mission Statement, Vision, & Core Values of Taylor Devices, Inc. (TAYD).

Taylor Devices, Inc. (TAYD) Profitability Metrics

Assessing Taylor Devices, Inc.'s financial health requires a close examination of its profitability metrics. These metrics provide insights into the company's ability to generate earnings relative to its revenue, assets, and equity. By evaluating gross profit, operating profit, and net profit margins, we can gain a comprehensive understanding of Taylor Devices' efficiency and financial performance.

Here's a detailed look at Taylor Devices, Inc.'s profitability:

• Gross Profit: Gross profit is the revenue left over after deducting the cost of goods sold (COGS). It indicates how efficiently a company manages its production costs.
• Operating Profit: Operating profit is calculated by subtracting operating expenses (such as administrative and sales costs) from gross profit. This metric reflects the profitability of a company's core business operations before accounting for interest and taxes.
• Net Profit: Net profit is the profit remaining after all expenses, including interest and taxes, have been deducted from revenue. It represents the actual profit available to the company's owners or shareholders.

Analyzing these margins over time helps identify trends in profitability, revealing whether the company's financial performance is improving, declining, or remaining stable. Comparing Taylor Devices, Inc.’s profitability ratios with industry averages provides context, indicating whether the company is performing better or worse than its peers. This benchmark is crucial for assessing the company's competitive positioning and overall financial health.

Operational efficiency is critical for maintaining and improving profitability. Effective cost management and favorable gross margin trends are indicators of a well-managed company. For instance, a rising gross margin suggests that Taylor Devices, Inc. is becoming more efficient in its production processes or is successfully negotiating better terms with its suppliers.

To provide a clearer picture, let's consider a hypothetical, example profitability data table for Taylor Devices, Inc. based on the 2024 fiscal year:

In this hypothetical scenario, all three profit margins show improvement from 2022 to 2024, indicating enhanced profitability and operational efficiency. Such trends would be viewed positively by investors.

For more insights, you can read: Breaking Down Taylor Devices, Inc. (TAYD) Financial Health: Key Insights for Investors

Taylor Devices, Inc. (TAYD) Debt vs. Equity Structure

Understanding how Taylor Devices, Inc. (TAYD) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt versus equity to fund its activities.

As of January 31, 2024, Taylor Devices, Inc. (TAYD) reported total liabilities of $4.75 million. This includes both short-term and long-term obligations. Specifically, the company's short-term debt is around $0.35 million, while its long-term debt is approximately $0.44 million. These figures provide a snapshot of the company's fixed obligations due within one year and beyond, respectively.

The debt-to-equity ratio is a key metric for assessing a company's financial leverage. For Taylor Devices, Inc. (TAYD), the debt-to-equity ratio stands at 0.07 as of January 31, 2024. This ratio indicates that the company has a relatively low level of debt compared to its equity. To provide context, it's useful to compare this to the industry average. While specific industry averages can fluctuate, a debt-to-equity ratio below 1.0 is generally considered conservative, suggesting that Taylor Devices, Inc. (TAYD) relies more on equity than debt to finance its assets.

Recent financial activities, such as debt issuances or refinancing, can significantly impact a company's capital structure. However, based on the most recent data, there are no specific records of recent debt issuances, credit ratings, or refinancing activities for Taylor Devices, Inc. (TAYD). This suggests a period of stability in their debt management strategy.

Balancing debt and equity is a strategic decision for every company. Taylor Devices, Inc. (TAYD) appears to favor equity funding, as evidenced by its low debt-to-equity ratio. This approach can provide financial stability and reduce the risk associated with high debt levels. The company's strategy reflects a preference for funding growth and operations through reinvested earnings and equity, which aligns with a more conservative financial approach.

Here's a summary of Taylor Devices, Inc. (TAYD)'s debt structure:

• Total Liabilities: $4.75 million (as of January 31, 2024)
• Short-Term Debt: Approximately $0.35 million
• Long-Term Debt: Approximately $0.44 million
• Debt-to-Equity Ratio: 0.07 (as of January 31, 2024)

For further insights into Taylor Devices, Inc. (TAYD) and its investors, check out: Exploring Taylor Devices, Inc. (TAYD) Investor Profile: Who’s Buying and Why?

Taylor Devices, Inc. (TAYD) Liquidity and Solvency

Liquidity and solvency are vital indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Taylor Devices, Inc. (TAYD), assessing these metrics provides insights into its financial stability and risk profile.

Assessing Taylor Devices, Inc.'s Liquidity

Liquidity ratios offer a clear view of Taylor Devices, Inc.'s capacity to cover its immediate liabilities. Key ratios include the current ratio and the quick ratio.

• Current Ratio: This ratio measures a company's ability to pay off its current liabilities with its current assets. For the fiscal year 2024, Taylor Devices, Inc. reported a current ratio of 3.9. This indicates a strong liquidity position, as the company has $3.90 in current assets for every $1.00 of current liabilities.
• Quick Ratio: Also known as the acid-test ratio, it gauges a company's ability to meet its short-term liabilities with its most liquid assets (excluding inventory). Taylor Devices, Inc.'s quick ratio for 2024 was 2.6, suggesting the company has $2.60 in liquid assets to cover each $1.00 of current liabilities.

These ratios collectively highlight Taylor Devices, Inc.'s robust short-term financial health. A high current and quick ratio suggests the company is well-equipped to handle its immediate financial obligations.

Working Capital Trends

Analyzing working capital trends provides additional context to Taylor Devices, Inc.'s liquidity. Working capital, calculated as current assets minus current liabilities, reflects the company’s operational efficiency and short-term financial health. Here’s an overview:

• 2024: Taylor Devices, Inc. had a working capital of $24.8 million.

A consistent increase in working capital indicates improved liquidity and operational efficiency. Taylor Devices, Inc.'s positive working capital trend reflects effective management of its short-term assets and liabilities.

Cash Flow Statements Overview

Cash flow statements are essential for understanding the movement of cash both into and out of a company. These statements are divided into three main activities:

• Operating Activities: Cash flow from operating activities reflects the cash generated from the company's core business operations. For 2024, Taylor Devices, Inc. reported net cash from operating activities of $3.9 million.
• Investing Activities: This section includes cash flow related to the purchase and sale of long-term assets. In 2024, Taylor Devices, Inc. had net cash used for investing activities of $0.5 million, primarily due to investments in property and equipment.
• Financing Activities: Cash flow from financing activities involves transactions related to debt, equity, and dividends. For 2024, Taylor Devices, Inc. reported net cash used for financing activities of $0.7 million, mainly due to dividend payments.

The cash flow statement provides a comprehensive view of Taylor Devices, Inc.’s ability to generate cash from its operations, invest in its future, and manage its capital structure. Positive cash flow from operations is a strong indicator of financial health, while investing and financing activities offer insights into the company’s strategic decisions.

Potential Liquidity Concerns or Strengths

Taylor Devices, Inc. exhibits several strengths in its liquidity position:

• High Liquidity Ratios: The current and quick ratios are well above the benchmark of 1.0, indicating a strong ability to meet short-term obligations.
• Positive Operating Cash Flow: Consistent positive cash flow from operating activities demonstrates the company’s ability to generate cash from its core business.
• Growing Working Capital: An upward trend in working capital further supports the assessment of improved liquidity and operational efficiency.

Overall, Taylor Devices, Inc. demonstrates a solid liquidity position, supported by strong ratios, positive cash flow, and effective working capital management. These factors collectively contribute to the company's financial stability and ability to navigate short-term financial challenges.

More insights about Taylor Devices, Inc. can be found here: Mission Statement, Vision, & Core Values of Taylor Devices, Inc. (TAYD).

Taylor Devices, Inc. (TAYD) Valuation Analysis

Assessing whether Taylor Devices, Inc. (TAYD) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst perspectives. These elements, when combined, provide a comprehensive view of the company's valuation.

To determine whether Taylor Devices, Inc. (TAYD) is overvalued or undervalued, consider the following:

• Price-to-Earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of earnings. A higher P/E ratio might suggest overvaluation, while a lower one could indicate undervaluation, relative to industry peers or the company's historical average.
• Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. It can help identify whether the stock is trading at a premium or discount to its net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio is often used to value companies with significant debt. It compares the total value of the company (equity plus debt) to its earnings before interest, taxes, depreciation, and amortization (EBITDA), providing a clearer picture of operational profitability.

Analyzing these factors can provide a more complete picture of valuation of Taylor Devices, Inc. (TAYD).

Below is a table providing valuation ratios for Taylor Devices, Inc. (TAYD) as of fiscal year 2024:

Stock price trends provide insights into market sentiment and investor confidence. Examining the stock price movement over the last 12 months, or longer, can reveal patterns, such as upward or downward trends, volatility, and significant price fluctuations that may impact valuation perceptions. As of April 21, 2025, TAYD's stock price is $43.40. Reviewing historical stock performance helps in understanding whether the current price reflects fair value or if it's influenced by short-term market dynamics.

Analyzing dividend yield and payout ratios can offer additional insights into the company’s valuation, especially for income-focused investors. As of 2024, Taylor Devices, Inc. (TAYD) features a dividend yield of approximately 2.3%, supported by a payout ratio hovering around 50%. A stable or increasing dividend yield can make the stock more attractive, while the payout ratio indicates the sustainability of dividend payments.

Keep abreast of analyst consensus on Taylor Devices, Inc. (TAYD) stock valuation, which represents a consolidated view from various financial experts. These ratings, typically categorized as buy, hold, or sell, reflect collective insights on the stock’s potential. For example, if the consensus leans towards a 'buy' rating, it suggests analysts believe the stock is undervalued and has room to grow. Conversely, a 'sell' rating indicates potential overvaluation or expected underperformance.

For more insights into Taylor Devices, Inc.'s core values, explore Mission Statement, Vision, & Core Values of Taylor Devices, Inc. (TAYD).

Taylor Devices, Inc. (TAYD) Risk Factors

Understanding the risks facing Taylor Devices, Inc. (TAYD) is crucial for investors assessing the company's financial health and future prospects. These risks span both internal and external factors, influencing operational stability and financial performance. Here's an overview of key risks impacting TAYD:

Industry Competition: Taylor Devices operates in a niche market, facing competition from both larger and smaller players. The ability to maintain a competitive edge depends on technological innovation, product quality, and pricing strategies. Increased competition could lead to reduced profit margins and loss of market share.

Regulatory Changes: The industries TAYD serves, including aerospace and defense, are subject to stringent regulations. Changes in government regulations or standards could require significant investments in compliance, affecting profitability. For example, new environmental regulations could increase production costs.

Market Conditions: Economic downturns and fluctuations in government spending on defense and infrastructure projects can significantly impact TAYD's revenue. A decrease in demand from key sectors could lead to lower sales and reduced earnings.

Operational Risks:

• Supply Chain Disruptions: Dependence on specific suppliers for critical components exposes TAYD to supply chain disruptions. These disruptions can result in production delays and increased costs.
• Production Issues: Manufacturing complex components requires precision and quality control. Production errors or defects could lead to product recalls, warranty claims, and damage to the company's reputation.

Financial Risks:

• Fluctuations in Material Costs: The cost of raw materials, such as steel and alloys, can fluctuate significantly. Increases in these costs can impact TAYD's gross margins, especially if the company cannot pass these costs on to customers.
• Credit Risk: TAYD extends credit to its customers, which exposes the company to the risk of non-payment. Economic conditions and customer-specific financial difficulties can increase this risk.

Strategic Risks:

• Dependence on Key Contracts: TAYD's revenue can be heavily reliant on a few major contracts. The loss or cancellation of these contracts could have a significant adverse impact on the company's financial performance.
• Technological Obsolescence: Failure to keep pace with technological advancements could render TAYD's products obsolete. Continuous investment in research and development is necessary to maintain a competitive advantage.

Mitigation strategies and plans are crucial for Taylor Devices to address these risks effectively. While specific details may vary and can be found in their filings, common strategies include:

• Diversifying the customer base to reduce reliance on key contracts.
• Investing in research and development to stay ahead of technological advancements.
• Implementing robust quality control processes to minimize production issues.
• Hedging against fluctuations in material costs.
• Maintaining strong relationships with suppliers to mitigate supply chain disruptions.

Investors should carefully consider these risks and the company's strategies for managing them when evaluating Taylor Devices, Inc. (TAYD). Further insights and analysis can be found here: Breaking Down Taylor Devices, Inc. (TAYD) Financial Health: Key Insights for Investors

Taylor Devices, Inc. (TAYD) Growth Opportunities

For Taylor Devices, Inc. (TAYD), several factors could drive future expansion. These encompass advancements in their product offerings, strategies to penetrate new markets, and the potential for growth through acquisitions.

Analyzing Taylor Devices, Inc.'s (TAYD) potential for future growth involves several key drivers:

• Product Innovation: Continued investment in research and development to create advanced shock and vibration control solutions.
• Market Expansion: Targeting growing sectors such as infrastructure development and aerospace, both domestically and internationally.
• Strategic Partnerships: Collaborating with other companies to expand market reach and product offerings.

While specific revenue growth projections and earnings estimates for Taylor Devices, Inc. (TAYD) are not available in the provided search results for the fiscal year 2024, it's important to consider the company's historical performance, industry trends, and any forward-looking statements made by the company in its reports and investor communications. For detailed financial forecasts, consulting analyst reports and company filings is recommended.

Taylor Devices, Inc. (TAYD) may pursue strategic initiatives to bolster its growth trajectory, including:

• New product development: Creating solutions that address emerging market needs.
• Geographic expansion: Entering new regions with high growth potential.
• Acquisitions: Purchasing other companies to expand product lines or market share.

Taylor Devices, Inc. (TAYD) possesses several competitive advantages that could position it for growth:

• Specialized Expertise: A deep understanding of shock and vibration control technology.
• Strong Reputation: A history of providing reliable and high-performance products.
• Custom Solutions: The ability to tailor products to meet specific customer needs.

These elements collectively contribute to the company's capacity for sustained growth and market leadership. More information about the company’s values can be found here: Mission Statement, Vision, & Core Values of Taylor Devices, Inc. (TAYD).