On August 14, 2017, CVD Equipment Corporation reported revenue for Q2 2017 of $10.8 million, an increase of 12.2% over the prior quarter and 189.3% from the same period last year. During the quarter, the Company received approximately $6 million in new orders. Backlog as of June 30, 2017, was $24.8 million. Net income for the second quarter was $1.3 million compared to $1 million in the prior quarter and a loss of ($496,000) a year ago. Net earnings per diluted share increased to $0.20 from $0.16 in the first quarter and a net loss of ($0.08) in the second quarter of 2016.
Leonard Rosenbaum, President and Chief Executive Officer said, “Solid execution of our growth strategy led to record revenue and strong profitability in the quarter. As we deliver and execute on our large aviation project and rebuild our core business pipeline, we are achieving exceptional results. The strong performance of our systems in the field and our ongoing development of additional coating products will generate future demand in a variety of new and adjacent markets.” You can find out more about this company here.
CVD Equipment Corporation Chart
CVV has formed a good setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at $11.58. Right above this resistance zone may be a good entry point. There is a support zone below the current price at $11.13, a stop order could be placed below this zone. We notice that large players showed an interest for CVV in the last couple of days, which is a good sign. A Pocket Pivot signal also happened today which is another positive sign.
CVV has many of the technical signals that I wrote about in this lesson on how to find stocks here.
The stock screener I used to find CVV is the one I created for GuerillaStockTrading readers on Chartmill, under the Shared Screens tab, called GST Positive Divergence. I did a video on the GST Positive Divergence stock screener here. I also did a stock trading lesson on Pocket Pivots and large players volume here.
CVD Equipment Corporation Review
CVV's Return On Assets of 6.37% is among the best of the industry. CVV does better than the industry average Return On Assets of 3.62%. CVV's Profit Margin of 9.07% is among the best in the industry. CVV does better than the industry average Profit Margin of 3.11%. The Piotroski-F score of CVV is 8. This is a very strong score and indicates great health and profitability for CVV.CVV has a Return On Equity of 8%. This is below the industry average of 10.90%.
The low PEG Ratio, which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company. When comparing the price book ratio of CVV to the average industry price book ratio of 2.34, CVV is valued rather cheaply. With a Price/Earnings Ratio of 23.96, CVV is valuated on the expensive side. CVV's Price/Earning Ratio is inline with the industry average which is at 32. With a price book ratio of 1.94, CVV is valued correctly.
CVV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 683.33%, which is very impressive. CVV shows a strong growth in Earnings Per Share. Measured over the last 5 years, the EPS has been growing by 46.35% yearly. Looking at the last year, CVV shows a quite strong growth in Revenue. The Revenue has grown by 18.5% in the last year. Measured over the past 5 years, CVV shows a small growth in Revenue. The Revenue has been growing by 8.09% on average per year.
CVV has a Current Ratio of 4.46. This indicates that CVV is financially healthy and has no problem in meeting its short term obligations. CVV is better placed than average in its industry to meet its short term obligations. Its Current Ratio is much better than the industry average of 2.57. A Quick Ratio of 4 indicates that CVV has no problem at all paying its short term obligations. The Quick Ratio of CVV is much better than the industry average of 1.79. CVV has better rating than 85% of its industry peers. An Altman-Z score of 6.49 indicates that CVV is not in any danger for bankruptcy at the moment. CVV has one of the better Altman-Z scores in its industry. It is much better than the industry average of 3.30. CVV has better score than 85% of its industry peers. The Piotroski-F score of CVV is 8. This is a very strong score and indicates great health and profitability for CVV. The Debt to Equity ratio of CVV is inline with the industry averages.