The company designs, manufactures, sells and services reciprocating compressors, gas and steam turbines, gas expanders and associated control panels. I like the 0.59 PEG and the excellent ROA, ROE, and ROI ratios, especially compared to the rest of the industry.
I am a bit concerned with its debt load. It has a current ratio of 1.36 and a quick ratio of 0.92, both significantly below industry levels. To its credit however, its asset,and inventory turnover ratios, along with its profit margins are multiples of the industry average,.The company is also growing at a much faster rate than its peers(with an increased backlog in orders of 29% from the same quarter of last year). So maybe they can carry the extra debt.
Another concern is the great guidance? and the fact that the analyst all love it. There isn't a single sell rating on the stock. Is it priced for perfection? Still, Dresser Rand has a recent history of surprising to the upside.
$40.02 (06/19/08)
