Taylor Devices (TAYD) AI Stock Analysis

• Market Cap: $278.86M
• Dividend Yield: N/A
• Average Volume (3M): 5.81K
• Price to Earnings (P/E): 28.2
• Beta (1Y): 0.94
• Revenue Growth: -3.64%
• EPS Growth: -4.12%
• Country: US
• Employees: 128
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.70
• Shares Outstanding: 3,153,117
• 10 Day Avg. Volume: 9,084
• 30 Day Avg. Volume: 5,807
• PEG Ratio: 1.00
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 2.50
• P/FCF Ratio: 23.74
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 5.77
• Enterprise Value/Gross Profit: 12.49
• Enterprise Value/Ebitda: 20.72
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.81
• Revenue Forecast (FY): $50.20M

• Rating: 78 Outperform
• Price Target: $103.00 ▲(110.59% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is driven primarily by strong financial performance (high margins, solid TTM growth, and a zero-debt balance sheet). Technicals are supportive with a strong uptrend, though momentum indicators are stretched. Valuation is the main offset, with a relatively high P/E and no dividend yield provided.

Positive Factors

High and improving margins

Sustained high gross and operating margins indicate durable pricing power and efficient engineering-led manufacturing. This margin profile supports reinvestment in product development, funds discretionary capital allocation, and provides a cushion against cyclical revenue swings over the medium term.

Zero-debt, growing equity base

A zero-debt balance sheet and rising equity materially reduce financial risk and preserve strategic optionality. This capital structure supports funding project-specific working capital, pursuing selective investments, and withstanding downturns without reliance on external leverage.

Strong trailing free cash flow

Robust trailing free cash flow that closely tracks net income reflects efficient cash conversion when projects align. Reliable FCF funds capital expenditures, potential shareholder returns, and internal growth initiatives, strengthening long-term financial flexibility and execution capacity.

Negative Factors

Volatile, lumpy revenue

Project-driven sales for engineered dampers cause material revenue cadence variability, complicating forecasting and capacity planning. Over multi-quarter horizons, this lumpy demand can pressure utilization, delay margin realization, and reduce predictability of growth and earnings progression.

Uneven historical cash conversion

Intermittent working-capital swings and episodic weaker operating cash flows create execution risk: strong accounting profits may not reliably convert to cash each year. This variability raises the chance of short-term funding needs and limits consistent reinvestment or distributions during weak cycles.

Limited recurring revenue streams

Heavy reliance on one-off project and product sales without disclosed recurring service or maintenance revenue reduces revenue visibility and customer lifetime value. Over time this makes the business more sensitive to construction cycles and slows the development of predictable, high-margin annuity streams.

Taylor Devices Business Overview & Revenue Model

Company Description

Taylor Devices, Inc. is a leading manufacturer and supplier of innovative shock absorption, vibration isolation, and control products. Operating primarily within the aerospace, defense, and industrial sectors, the company specializes in the development of advanced technology solutions such as shock absorbers, seismic isolators, and vibration dampers. Taylor Devices' products are utilized in a variety of applications, including infrastructure projects, military equipment, and commercial buildings, providing enhanced safety and operational performance.

How the Company Makes Money

Taylor Devices generates revenue through the sale of its diverse range of shock absorption and vibration control products. The company's key revenue streams include contracts with government agencies for defense and aerospace applications, as well as sales to commercial and industrial clients who require advanced damping solutions for infrastructure and machinery. Significant partnerships with engineering firms and contractors also contribute to its earnings by facilitating the integration of Taylor Devices' products into large-scale projects. Additionally, the company benefits from ongoing maintenance and support services associated with its products, further enhancing its revenue model.

Taylor Devices Financial Statement Overview

Summary

Strong TTM profitability and growth (revenue +19.3%, gross margin ~46%, EBIT margin ~24%, net margin ~20.8%) with a major multi-year improvement versus 2021. Balance sheet is very conservative with zero debt and rising equity, while cash generation is strong in TTM but historically uneven, making consistency of cash conversion and lumpy demand the main risks.

Income Statement

Profitability and growth are strong in TTM (Trailing-Twelve-Months): revenue grew 19.3% with solid gross margin (~46%) and healthy operating profitability (EBIT margin ~24%, EBITDA margin ~28%). Net margin is also robust at ~20.8%. The multi-year trajectory shows a major improvement from 2021’s weak/negative operating results to consistently higher margins and earnings in recent years. The main watch-out is that growth has been volatile year-to-year (e.g., outsized growth in 2022–2023, then much slower in 2025 annual), suggesting demand may be lumpy.

Balance Sheet

The balance sheet is very conservative with zero debt across all periods provided, which meaningfully reduces financial risk. Equity has grown over time (from ~$40.8M in 2021 to ~$67.1M in TTM), supporting a stronger capital base. Returns on equity are healthy in recent periods (about 15.7% in TTM), though they have fluctuated (peaking in 2024 and lower in earlier years), implying returns may be cyclical rather than steady.

Cash Flow

TTM (Trailing-Twelve-Months) cash generation is strong: operating cash flow is ~$17.2M and free cash flow is ~$14.1M, with free cash flow up 56.2% versus the prior period provided. Cash conversion is generally good, with free cash flow running at ~85% of net income in TTM. However, cash flow has been uneven historically (notably weaker conversion and lower operating cash flow relative to profits in the 2025 annual period), which raises some risk around working-capital swings and timing effects.

Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	47.65M	46.29M	44.58M	40.20M	30.87M	22.51M
Gross Profit	21.99M	21.48M	20.84M	16.07M	9.63M	3.17M
EBITDA	13.26M	12.76M	11.18M	8.98M	3.82M	370.76K
Net Income	9.89M	9.41M	9.00M	6.29M	2.24M	1.06M
Balance Sheet
Total Assets	72.84M	71.62M	63.08M	57.88M	49.22M	45.93M
Cash, Cash Equivalents and Short-Term Investments	40.74M	35.99M	30.96M	28.09M	23.61M	21.68M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	5.78M	9.57M	11.83M	7.79M	5.96M	5.13M
Stockholders Equity	67.06M	62.04M	51.25M	50.09M	43.26M	40.80M
Cash Flow
Free Cash Flow	14.07M	4.87M	11.77M	4.35M	1.92M	5.41M
Operating Cash Flow	17.19M	7.47M	13.22M	7.71M	3.31M	7.03M
Investing Cash Flow	-17.67M	-9.27M	-5.07M	-26.78M	-1.39M	-1.65M
Financing Cash Flow	81.74K	162.05K	-8.89M	132.97K	16.25K	43.42K

Taylor Devices Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 48.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TAYD, the sentiment is Positive. The current price of 48.91 is below the 20-day moving average (MA) of 81.60, below the 50-day MA of 72.30, and below the 200-day MA of 51.34, indicating a bullish trend. The MACD of 4.31 indicates Positive momentum. The RSI at 58.08 is Neutral, neither overbought nor oversold. The STOCH value of 69.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TAYD.

Taylor Devices Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TAYD	78 Outperform	$278.86M	28.20	15.12%	―	-3.64%	-4.12%
BWEN	65 Neutral	$58.47M	12.06	8.20%	―	-1.47%	52.65%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TWIN	63 Neutral	$252.96M	11.59	0.22%	0.95%	14.24%	-96.24%
CVV	55 Neutral	$27.26M	-145.76	-0.73%	―	19.84%	95.71%
BURU	35 Underperform	$48.30M	-0.08	―	―	-98.20%	93.77%