Spindex Industries

[BlueKelah]

Is Spindex considered a strong company?

P/E 6.59
P/B 0.69
Div Yield 4.80%
D/E 1.76%
ROE 12.01%
Net Cash

It's a small but well managed company.

Can't really say its strong as it is still very small cap (40mil) and easily affected by economic ups and downs. Not much of economic moat of any kind really. Not much growth prospect either.

But due to its low profile and tiny cap, share price has been very stable. Very illiquid though, normally a couple of months before yearly dividend there is increased activity with some share price bump but after XD drop back to obscurity. Or sometimes some bored analyst will remark about its high net cash and share price trend up but soon no interest again.

At current price not very attractive for dividend, try to pick up around 30cents. Dividend also not stable, depends on that year's performance. Last year payout 1.8 from 6.1 cents of EPS, <30%

Note that the top 20 shareholders add up to 74% and composition largely unchanged for many many many years and not likely to change much.

So despite the high cash value and stable management, unless they start a dividend payout policy or do share buy back, I would say company like UMS is a better buy for precision engineering...

Good thing is with about 400k you can buy in more than 1% of the company and become one of the top 20 shareholders your name can appear in the annual report.