**Taylor Devices, Inc. (TAYD)** has experienced a remarkable 74.4% surge in share price over the past six months, significantly outperforming the 17% growth observed in the broader manufacturing industry. The company’s growth is attributed to a strong focus on booming U.S. sales, which constituted 88% of total revenue for the first half of fiscal 2026, up from 82% the previous year. Defense-related demand, coupled with a 34% increase in sales from high-margin projects, has contributed to TAYD’s robust profitability and cash flow, with a gross margin of 46%.
The company’s balance sheet also appears strong, featuring nearly $39 million in short-term investments and $2 million in cash, while investing $1.5 million in capital expenditures this half-year. Despite its successes, Taylor Devices faces challenges, including a 32% decline in international sales and a 9% drop in revenue from long-term contracts year-over-year, which may pose risks to future performance. The stock currently trades at an EV/sales ratio of 4.35X, slightly above the industry average of 4.13X.
