Tuesday, July 31, 2007

Atrion Corporation

Atrion Corporation is a NASDAQ listed security that has been trading in a range between $67.37 and $110.50 over the past year. With 1,887,610 shares outstanding, a recent price of $107.63 gives a total market capitalization of $194,952,358. While there are certainly larger companies, Atrion Corporation has definitely earned its place in the pack. Last year, Atrion Corporation created $6.02 in earnings for every share outstanding.

Atrion Corporation is currently priced by the market at 18.10 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price over $50 a share and earnings per share in excess of $1 a share, Atrion Corporation could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.

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