GDI - Embedded Expectations Analysis - 2018 08 15
Gardner Denver Holdings, Inc. (GDI:USA) currently trades near historical averages relative to UAFRS-based (Uniform) Earnings, with a Uniform P/E of 11.1x. At these levels, the market has somewhat bearish expectations, while management has concerns about slowing demand across the market and poor returns on recent investmentsSpecifically, management may be concerned about demand slowing across the market, particularly with regards to upstream orders. Additionally, they may lack confidence in their ability to sustain strong net income and EPS results, as well as growth across the portfolio. Specifically, they may have concerns about slowing growth in their OEM products, particularly within the harsh chemical processing segment. Finally, they may be concerned about the returns generated from their investments, specifically in the aftermarket and consumable segments, and in their PMI acquisition
Gardner Denver is a holding company. Through its subsidiaries, the company is a provider of flow control and compression equipment and associated aftermarket parts, consumables and services. The company's segments are: Industrials, which designs, manufactures, markets and services air compression, vacuum and blower products; Energy, which designs, manufactures, markets and services positive displacement pumps, liquid ring vacuum pumps, compressors and integrated systems, engineered fluid loading and transfer equipment and associated aftermarket parts, consumables and services; and Medical, which designs, manufactures and market gas, liquid and precision syringe pumps and compressors.
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