Genlyte is growing at 19% and has a clean balance sheet. Earnings have grown every year for the last 14 years.
Genlyte makes lighting fixtures...a ho-hum, non-sexy business. But its catalyst is going to be the wave of changeouts from inefficient incandescent bulbs to compact fluorescents or LEDs as state-mandated phaseouts begin to force consumers to choose energy efficient bulbs. A 39.7% gross profit margin for 2006 and a 25% ROE points the way to Genlyte having a nice moat.
With 38 specialty brands, this company is pretty diversified across the lighting spectrum, with products serving outdoor, roadway and residential lighting. The stock may have lost favor because of its housing industry tie-in, but the most recent quarterly report reveals the residential business is only 11% of sales and 11% of profits.
$82.03 (07/03/07)
