Segment-leading brands don't always guarantee top-flight performance, as Canada's Dorel Industries (OTCPK:DIIBF)
demonstrates. The stock hasn't been terrible, but it doesn't really
stack up so well against the S&P 500 over the last one, two, and
five-year periods, even though Dorel boasts significant market share in
the infant/child products, bike, and ready-to-assemble furniture
markets.
I wish I could see a brighter future for this company,
but I have some doubts. I don't think the issues that are currently
hitting the bike business are going to last forever, but this isn't a
company that has done all that much from an organic growth, operating
margin, or return on invested capital perspective over the past decade.
The stock does seem a little undervalued today, but I can't get
comfortable with the idea that it's really an outstanding performer.
Read the full article here:
Dorel Industries Trying To Ride Out A Flat Tire
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