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Roper Technologies Inc. (ROP)
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Constellation Software Inc. (CSU)
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Descartes Systems Group Inc. (The) (DSG)
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Teledyne Technologies Incorporated (TDY)
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Tyler Technologies Inc. (TYL)
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Boyd Group Services Inc. (BYD)
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Topicus.com Inc. (TOI)
Q: CSU has been an amzing investment and thank you for your long standing recommendation. What would you consider the next most "CSU-like" company in terms of management and growth in any sector? Could you please provide one in Canada and one in US? Thanks so much. Please do not include TOI in your answer.
Q: Hello 5i
On Jan. 26 question from Jean Guy you referenced research on TDY (Teledyne) yet the name and symbol above the question was Teradyne (TER).
Could you clarify which one you "quite like it today"?
Thank you
Dave
On Jan. 26 question from Jean Guy you referenced research on TDY (Teledyne) yet the name and symbol above the question was Teradyne (TER).
Could you clarify which one you "quite like it today"?
Thank you
Dave
Q: I am wondering if you can provide your opinion on Teledyne, only 2 questions and the company has been around forever and looks to have done very well... I read I thread on twitter recently (I know that sounds bad) and what perked my interest even more was I noticed Ryan follows them (@sleepwellcap) and I know that doesn't mean he endorses their views etc but here is how they summarize TDY.
High tech industrial with 4 segments: Digital Imaging, Instrumentation, A&D Electronics and Engineered Systems. It’s also a acquisitive, a Berkshire Hathaway of high tech industrials of sorts. Their businesses share a couple of traits: highly engineered, mission critical components that are typically expensive and integrated into a larger system and must be reliable. Customers care more about quality than price. Most products sense, analyze or transmit information. Segment detail: Digital Imaging (60%) — high performance sensors/cameras like X-ray, machine vision, thermal detectors, and everything accross the e/m spectrum; Instrumentation (20%) — test&measurement, monitoring and control instruments for marine, environmental and industrial; A&D electronics (12%) — sophisticated electronic components, subsystems, communication products and interconnect for harsh environments. Used in aviation, satellite, submarines, UAVs etc;Engineered Systems (8%) — similar to A&D, but mostly cost-plus businesses contracts with DoD
Management has a splendid track record of acquisitions and conservative guides and accounting (missed EPS 3 quarters in 20 years) Execs are paid on LT outperformance of the Russell 2000. CEO Al Picelli succeeded Robert Mehrabian in 2019 who is now Chairman but still very involved. Oh, and they just bet the house on their most recent acquisition (pending close) On Jan 4 they announced they were buying FLIR Systems for $8B, that’s 40% of TDY’s marketCap (!!!) Leverage will kick up to 3.5x and go back <2x in 18mo. Paid 17x EBITDA, adds ~$5 FCF/sh and growing. ROIC is around 30% (from low-mid 20s 5 years ago), probably stepping up to mid-30s in next couple of years as they integrate FLIR, work on margin expansion initiatives and pay down debt...
Thanks for your thoughts!
High tech industrial with 4 segments: Digital Imaging, Instrumentation, A&D Electronics and Engineered Systems. It’s also a acquisitive, a Berkshire Hathaway of high tech industrials of sorts. Their businesses share a couple of traits: highly engineered, mission critical components that are typically expensive and integrated into a larger system and must be reliable. Customers care more about quality than price. Most products sense, analyze or transmit information. Segment detail: Digital Imaging (60%) — high performance sensors/cameras like X-ray, machine vision, thermal detectors, and everything accross the e/m spectrum; Instrumentation (20%) — test&measurement, monitoring and control instruments for marine, environmental and industrial; A&D electronics (12%) — sophisticated electronic components, subsystems, communication products and interconnect for harsh environments. Used in aviation, satellite, submarines, UAVs etc;Engineered Systems (8%) — similar to A&D, but mostly cost-plus businesses contracts with DoD
Management has a splendid track record of acquisitions and conservative guides and accounting (missed EPS 3 quarters in 20 years) Execs are paid on LT outperformance of the Russell 2000. CEO Al Picelli succeeded Robert Mehrabian in 2019 who is now Chairman but still very involved. Oh, and they just bet the house on their most recent acquisition (pending close) On Jan 4 they announced they were buying FLIR Systems for $8B, that’s 40% of TDY’s marketCap (!!!) Leverage will kick up to 3.5x and go back <2x in 18mo. Paid 17x EBITDA, adds ~$5 FCF/sh and growing. ROIC is around 30% (from low-mid 20s 5 years ago), probably stepping up to mid-30s in next couple of years as they integrate FLIR, work on margin expansion initiatives and pay down debt...
Thanks for your thoughts!