I have been following Atrion Corp. for more than 10 years. This Texas-based outfit manufactures medical products and components used in fluid delivery, cardiovascular, and ophthalmic. There is an "Other" segment that makes valves for self-inflating rafts and for life vests.
The company grows like clockwork. In the recent quarter, the company's gross profit margin reached 47.8% (a record) and the net profit margin after taxes reached 19.9%.
There are only 2 million shares outstanding and the market cap is around $325 million at the recent price in excess of $160/share. Management owns a considerable chunk approaching 20% of the shares, which trade daily in small numbers with a bid/ask spread that frequently is several points.
The company does not court Wall Street at all, and has manufacturing facilities in Texas and Florida that are owned outright. The Florida facility was built for on the order of $25 million several years ago and paid for with a combination of cash on hand, free cash flow, and a line of credit.
I welcome questions from my readers and fellow investors about this company after you guys have done a modicum of DD.
Jay Hains/alexalekhine
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