Taylor Devices (TAYD) AI Stock Analysis

• Market Cap: $217.25M
• Dividend Yield: N/A
• Average Volume (3M): 5.81K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 1.04
• 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: 0.68
• Enterprise Value/Revenue: 3.11
• Enterprise Value/Gross Profit: 6.75
• Enterprise Value/Ebitda: 11.18
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: $78.00 ▲(59.48% Upside)

The score is driven primarily by strong financial performance (high profitability, solid TTM growth, and a zero-debt balance sheet), supported by bullish technical trends (price above major moving averages with positive momentum). Valuation is a moderating factor with a P/E of 22.374 and no dividend yield provided, while the corporate event is positive but modest in impact.

Positive Factors

High Profitability & Margins

Sustained high gross and operating margins reflect engineered, high-value product pricing and manufacturing efficiency. Durable margin profiles support reinvestment in R&D, buffer against cyclical revenue swings, and signal persistent competitive advantage in motion-control solutions.

Zero Debt, Strong Equity Base

A zero-debt balance sheet materially lowers financing risk and increases strategic optionality. This financial conservatism lets the company fund uneven project timing, pursue selective capex or development, and maintain operations through downturns without relying on external borrowing.

Robust Cash Generation

Strong and improving free cash flow generation provides durable internal funding for product development, working capital needs, and potential shareholder returns. High conversion of earnings to FCF enhances resilience and reduces dependence on external capital in project-driven markets.

Negative Factors

Lumpy Revenue Pattern

Dependence on project and retrofit orders drives uneven revenue timing, making multi-period forecasting and capacity planning challenging. Persistent lumpy demand can cause margin and earnings volatility, complicating investment decisions and long-term resource allocation.

Uneven Cash-Flow Conversion Historically

Historic working-capital swings and episodic weaker operating cash conversion reduce predictability of free cash flow. This intermittency can constrain the timing of reinvestment or dividends and necessitate larger cash buffers, limiting efficient capital deployment.

Limited Recurring Revenue Streams

Revenue is largely project-based with no clear recurring service or maintenance revenue disclosed. Lack of steady annuity-like income increases sensitivity to construction cycles and capital spending, raising long-term revenue cyclicality and forecasting risk.

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%) supported by a very conservative, zero-debt balance sheet and growing equity. Key risk is variability: growth and cash-flow conversion have been uneven across periods.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	46.29M	44.58M	40.20M	30.87M	22.51M
Gross Profit	21.48M	20.84M	16.07M	9.63M	3.17M
EBITDA	12.76M	11.18M	8.98M	3.82M	370.76K
Net Income	9.41M	9.00M	6.29M	2.24M	1.06M
Balance Sheet
Total Assets	71.62M	63.08M	57.88M	49.22M	45.93M
Cash, Cash Equivalents and Short-Term Investments	35.99M	30.96M	28.09M	23.61M	21.68M
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	9.57M	11.83M	7.79M	5.96M	5.13M
Stockholders Equity	62.04M	51.25M	50.09M	43.26M	40.80M
Cash Flow
Free Cash Flow	4.87M	11.77M	4.35M	1.92M	5.41M
Operating Cash Flow	7.47M	13.22M	7.71M	3.31M	7.03M
Investing Cash Flow	-9.27M	-5.07M	-26.78M	-1.39M	-1.65M
Financing Cash Flow	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: Negative
• RSI: Negative
• STOCH: Negative

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 62.91, below the 50-day MA of 53.86, and above the 200-day MA of 44.40, indicating a bullish trend. The MACD of 4.70 indicates Negative momentum. The RSI at 73.36 is Negative, neither overbought nor oversold. The STOCH value of 93.04 is Negative, 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	80 Outperform	$217.25M	23.89	15.12%	―	-3.64%	-4.12%
TWIN	66 Neutral	$245.89M	709.05	0.22%	0.95%	14.24%	-96.24%
BWEN	65 Neutral	$91.30M	18.21	8.20%	―	-1.47%	52.65%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CVV	53 Neutral	$32.40M	-157.56	-0.73%	―	19.84%	95.71%
BURU	35 Underperform	$85.76M	-0.14	―	―	-98.20%	93.77%

Taylor Devices Corporate Events

Taylor Devices Approves Key Proposals at Shareholders Meeting

On October 17, 2025, Taylor Devices, Inc. held its annual shareholders meeting where several key proposals were approved. Shareholders elected Robert Carey as a Class 3 Director for a term ending in 2028, ratified Lumsden & McCormick, LLP as the independent public accounting firm for the fiscal year ending May 31, 2026, and approved the 2025 Stock Option Plan. These decisions are expected to impact the company’s governance and financial oversight positively.

The most recent analyst rating on (TAYD) stock is a Buy with a $48.00 price target. To see the full list of analyst forecasts on Taylor Devices stock, see the TAYD Stock Forecast page.