KSW .Inc (KSW)

[no_pump_no_bash]

KSW undervalued on P/E basis.

P/E of comparable competitors:
In January 2008 Trane Inc. (TT) had a ttm P/E of 18.30, Johnson Controls Inc. (JCI) had 17.62 in January while KSW had a ttm P/E of 12.48 , which was 30% lower.
Today TT has 15.84 and JCI has 14.81 while KSW is at 10.03 which is again 35% lower than the average of his two bigger competitors (15.33).
Adding FIX (P/E 16.13) to the mix brings the avg. ttm P/E of the competitors to 15.6, so KSW is by any means valued at least 35% lower than its comparable competitors.

Looking at the most recent numbers,
TT had 34% less revenues and 47% less net income;
FIX had a 28% drop of revenues and 24% less net income;
JCI had 7.4% more revenue and 22% more net income;
KSW had stagnant revenues but 32% more net income than the year before.

None of the competitors has been as successful as KSW increasing the bottom line over the last FY.

Using todays average P/E of comparable competitors, KSW's fair value becomes 15.6 x 0.59 = $9,20
(Fair value last January: $9.72 )