Ampco-Pittsburgh: I'm Taking The Bait And Turning Bullish

Andres Veurink 2.4K Followers Follow Summary Ampco-Pittsburgh is upgraded to Buy as a turnaround accelerates, with demand and backlogs surging, especially in the Air and Liquid Processing segment. Despite rising net debt and thin liquidity, AP’s backlog reached $358 million, with a book-to-bill ratio of 1.27x, signaling robust forward demand. Adjusted EBITDA margin improved to 9.49%, and incremental margins in ALP hit 55.4%, supporting reinvestment over debt repayment as the optimal capital allocation. Valuation at 6x FWD EV/EBITDA is attractive versus sector medians, and reinvestment in capacity is expected to drive outsized EPS growth relative to debt reduction. industryview/iStock via Getty Images Investment Thesis I always found Ampco-Pittsburgh ( AP ) to be a really interesting business to look at. It’s in the midst of a turnaround as it’s exiting some areas which were a drag on the results This article was written by Andres Veurink 2.4K Followers Follow With over a decade of institutional investment experience, I specialize in identifying growth opportunities at the intersection of technological disruption and macro-thematic energy shifts. I've spent the majority of that time at a hedge fund here in Rotterdam, working my way up as an analyst. My work reflects rigorous standards as I myself have a very high standard as to what I invest my money in. My primary coverage spans the technology sector—with a focus on SaaS and cloud infrastructure—and the energy and minerals markets. I tend to be very data and trend driven in my work, analyzing unit economics and supply chain gaps among a number of other often overlooked areas in business and industries.I find these offer incredible growth opportunities and are also very fun to research and follow. It's a very active space with plenty of news coming out each week. Work is my own thoughts and research is done only by myself. Analyst’s Disclosure: I/we have a beneficial long position in the shares of AP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.