This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Rofin-Sinar, a Cheap Tech Name or Value Trap?

Stocks in this article: RSTI

NEW YORK (TheStreet) -- The drought in availability of cheap stocks is man-made as investors continue bidding up valuations. But there are still value stocks to be found, such as Rofin-Sinar Technologies (RSTI) trading recently at $23.18.

The laser-solutions company is trading inexpensively relative to its net current assets value. The new double net -- trading at between one and two times its NCAV -- is certainly not a well-known name. Rofin-Sinar has significant operations in Germany, and remained profitable through the last recession.

On the negative side, Rofin-Sinar's revenue stagnated in recent years, falling from $598 million in 2011, to $540 million in 2012, and recovering somewhat to $560 million this past year. Its first quarter results for 2014 showed a 15% revenue decline. Profit margins have been declining as well. The company bottom-lined 10.1% of revenue in 2011; that fell to 6.2% in 2013.

RSTI Revenue (TTM) ChartRSTI Revenue (TTM) data by YCharts

While that may not paint a rosy picture for this cyclical company, it is also the reason that the company currently trades at just 1.98 times NCAV, and less than 1.2 times book value per share. The balance sheet is solid, and the company ended its latest quarter with $145 million or $5.13 per share in cash and short-term marketable securities, and just $19 million in total debt.

RSTI Chart
RSTI data by YCharts

A deeper examination of the 10K filing reveals Rofin-Sinar owns the land and buildings for five of its manufacturing facilities in New Jersey, Florida, Finland, Spain and China, for a total of 194,000 square feet of space. In addition, it owns a 175,000 square foot facility in Hamburg, Germany, on leased land.

Time will tell whether Rofin-Sinar is a true bargain, or just another technology company in decline, but it's good to have another double net on the radar for further scrutiny.

At the time of publication the author is long LF.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs