Evaluating No-Dig Companies for Potential Investment

摘要

No-dig technologies have seen substantial growth over the past two decades. Yet, the most profitable years are in the making while the industry is going through a shake out, consolidation, mergers, and acquisitions. As engineers, planners, contractors, manufacturers, public officials, often we tend to focus mostly on the technical aspects of such technologies. Rarely, we look at No-Dig technologies as possible investment opportunities, given the myriad of publicly trading companies encompassing what we eat, drink, wear, live-in, drive, use in our daily lives. And often as professionals in the business of No-Dig technologies we tend to go more only with the advice of our trusted investment advisor. In the financial services industry, little analyst coverage exists for the companies in the No-Dig discipline. Therefore, the stocks in No-Dig companies are not as groovy as those of Internet flavor and often trade thin given a rather small audience. This paper provides a concise summary of the criteria to use to identify investment opportunities among No-Dig companies. Sales, profit margins, earnings, debt, liquidity, research and development, growth rates, price/sales ratio, price/earnings ratio, PEG, current ratio, quick ratio, cash flow are some of the factors commonly used in such evaluations. Some guidance is provided on how to apply these terms to No-Dig businesses. The paper will also provide an assessment of future outlook for various No-Dig technologies and how to use the above investment tools to identify those, which are likely to grow to provide a good return on the investment.