Thursday, September 29, 2011

Sun Hydraulics (SNHY) 2011 Review


Sun Hydraulics (SNHY) designs, manufactures and markets valves and manifolds for hydraulic systems including electrical and nonelectrical actuated valves, machined manifolds and custom valve and manifold assemblies for use in construction agriculture, mining, industrial and fire and rescue equipment.


The company has grown dividends and profits at a 15-25% pace over the past five years earning a 15-15% return on equity. SHNY’s business suffered dramatically in the recent recession; however, it has made a strong comeback which should continue as a result of:

(1) growth in global industrial capital expenditures,
(2) price increases,
(3) exposure to Germany, Korea, China and India.

Negatives:
(1) its international business exposes it to the uncertainties of foreign laws and regulations as well as currency fluctuations,
(2) intense competition.

SHNY is rated B+ by Value Line, it has no debt and its stock yields 0.8%.

Statistical Summary

Stock YieldDividend Growth RatePayout Ratio # Increases Since 2001
SNHY0.8%12%
37%

5
IND1.5619NA

Debt/EquityROEEPS Down Since 2001 Net MarginValue Line Rating
SNHY
0%
19%
1

25%

B+
IND
40

20

NA

8

NA

Chart

Note: SNHY stock made great progress off its March 2009 low, quickly surpassing the down trend off its July 2008 high (red line) and the November 2008 trading high (green line). Long term, the stock is in an up trend (straight blue lines). Recently, SNHY broke an intermediate term up trend and re-set to a trading range (purple lines). The wiggly blue lines are Bollinger Bands. The Aggressive Growth Portfolio owns a 75% position in SNHY. Additional shares would be Bought at $19; the lower boundary of its Sell Half Range is $43.



http://finance.yahoo.com/q?s=SNHY
9/11