Seeking Alpha: Tiny MOCON Worth A Little More Attention

I like under-followed companies, and it's hard to be much less followed than MOCON (MOCO). This small analytical/measurement tools company is passingly similar to larger scientific tools makers like Agilent (A), Thermo Fisher (TMO), and Waters (WAT), but MOCON is largely focused on gas/vapor permeation instruments and packaging testing for the food, beverage, pharmaceutical, and consumer goods sectors.

On first blush, MOCON may not seem to be worth the work. There are no sell-side analysts following the stock, and the low volume and float will have it stricken off the list of many would-be institutional holders. A trailing P/E of nearly 24 and EV/EBTIDA of more than 10 also don't look cheap at first glance, though I believe a free cash flow approach suggests a fair value north of $20. Provided the company can stay on track with its margin improvement efforts, I like the long-term outlook for this tiny instruments company.

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Tiny MOCON Worth A Little More Attention