FTG is a small ($230M market cap) global supplier of aerospace and defense electronic products and subsystems. It operates through 'FTG Circuits' (high-tech circuit boards for aviation, defense, and high-tech customers), and 'FTG Aerospace' (designs and manufactures illuminated cockpit products and electronic assemblies). It is hitting new 52-week highs, its five-year sales and earnings have grown at an 8% and 12% CAGR, respectively. Sales growth has been strong in recent years, margins are moving up and to the right, debt levels are low, and it trades at a decent multiple of 16.5X forward earnings. We think it is a strong name with good potential. Some of the risks include its small size ($230M), sales growth has been volatile over the years, and its business is somewhat cyclical.
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