Moab Cap Reports 5.1% KSW Stake, Says Shrs Are Undervalued
Last update: 8/3/2007 6:58:42 AMDOW JONES NEWSWIRES Moab Capital Partners LLC on Friday reported holding a 5.1% stake in KSW Inc. (KSW) and said it believes the company's shares are "significantly undervalued."
Moab Capital beneficially owns 313,266 shares of KSW, a Queens, N.Y., furnisher and installer of heating, ventilating and air conditioning systems and process piping systems.
The New York-based investor said it purchased the shares because KSW's "highly-regarded management" team has created a "unique value-engineering business proposition" which is driving the company's superior growth in backlog, revenue and earnings margins. Furthermore, Moab believes KSW's shares are significantly undervalued based on the free cash flow the company generates, and on a relative basis to its publicly traded peers, including Comfort Systems USA Inc. (FIX) and Emcor Group Inc. (EME).
As of July 30, KSW had the highest Ebitda margins of the peers, the smallest capitalized expenditures and predominantly operates in the rapidly growing New York City construction market where it has no exposure to the declining single-family homebuilding cycle.
Moab also believes KSW is "well capitalized and poised to expand its business into major metropolitan markets beyond the New York City market." KSW's shares closed Thursday at $7.22 each.
