Private Value Greater Than Current Market Price Attracts Activist
Perceptron, Inc. (PRCP), develop and sells automated industrial measuring products and solutions in the Americas, Europe, and Asia. It offers 3D machine vision solutions, robot guidance, coordinate measuring machines, and laser scanning.
The manufacturing industry use Perceptron's products for dimensional gauging, inspection and 3D scanning. Further, it offers value added services consisting of training, field services, calibration, launch support services, consulting services, equipment,software maintenance agreements and repairs. Their largest end use market is the automotive industry. Perceptron has 346 employees, founded in 1981 and headquartered in Michigan.
Perceptron continues to struggle, I believe more than accounted for in its negative stock returns potentially creating an investable opportunity.
In 2013, Perception set a new strategic direction. One is to sustain its auto sector leadership. Additionally , new small acquisitions include the Coord3 and the Next Metrology providing important revenue diversification. More importantly than revenue diversification is an immediate focus on profitability and cash flow.
During the Q2 2016 conference call CEO stated revenue and profitability for the prior six months were short of expectations, but "that said elements supporting Perceptron's long-term potential can be seen in the results. Bookings were a record for second quarter. Backlog is about $40 million for only the fourth time in our history.On an optimistic note bookings were a record for second quarter. Backlog is about $40 million for only the fourth time in our history." Negative foreign exchange translation has been a head wind. dragging down results.
"The board remains confident that Perceptron will be able to achieve double-digit revenue growth over the longer term while also improving profitability and cash flow."CEO
The low market price, horrific stock returns continue to attract value investors.MOAB CAPITAL PARTNERS has taken a activist 13D position adding more share, 213,028 shares from their 13D filed 3/15/16 to 4/19/16.
See table below for other value institutions, Royce, Ariel, Kennedy Capital, and others.
Price per share on 04/29/16 = $4.61
Market Cap: 43.10M , Enterprise Value: 34.62M
Price/Sales (ttm): 0.61 , Price/Book (mrq): 0.78
Revenue (ttm): 71.90M ,Qtrly Revenue Growth (yoy): -27.00%
Gross Profit (ttm): 28.27M versus Enterprise value of 34.62M
Total Cash (mrq): 8.68M, Total Cash Per Share (mrq): 0.93
Current Ratio (mrq): 2.01 , Book Value Per Share (mrq): 6.05
52-Week Change: -62.12%
52-Week High: 12.70 , 52-Week Low: 4.54
% Held by Insiders: 4.51% , % Held by Institutions: 68.90%
Note the valuation improvements for P/B, EV/Revenue, 63% drop in market cap from 2014,