Sub Net Tangible Asset Value Servotronics (SVT)
Servotronics ticker symbol SVT sells control components and consumer products in the United States and internationally. It operates in two segments, Advanced Technology Group (ATG) and Consumer Products Group (CPG). The ATG segment provides servo-control components to the commercial aerospace, aircraft, and government related industries; and medical and industrial markets. These are torque motors, electromagnetic actuators, hydraulic and pneumatic valves, and related devices that convert an electrical current into a mechanical force or movement, and other products. They make metallic seals of various cross-sectional configurations to close tolerances from standard and special alloy steels. They sell these to the United States Government, government prime contractors, government subcontractors, commercial manufacturers, and end-users. The CPG segment provides cutlery products, including steak, carving, bread, butcher, and paring knives for household use, as well as for use in restaurants, institutions, and the private industry; fixed and folding knives for hunting, fishing, and camping etc.
One of the first things that stood out to me about this small company is the stock price performance since inception. While the overall return isn’t overly impressive through today the consistent rise in stock price over decades is very impressive. In the late 1980s the stock traded for $1.86 and went all the way to $17.50 in Feb. 2008. It was down until 2015 to the $6 range until the next bull trend started until today.
With 2.5 million shares outstanding it currently sports a $26.8 million market cap at $10.75 a share. There is $33.5 million in net tangible asset value and $23 million in net current asset value. They have very little long-term debt at just $326k. They were free cash flow positive in 2021. Not in 2022 though. Revenue growth has been trending down since 2019. They have been net profitable every year since 2019. The stock volume is very thin. It only traded 350 shares total today. I see this as one of the better deep value stocks out there especially if the stock price gets cheaper below net current asset value.