Morningstar Rating

Stock Research and Analysis

by Todd Wenning

Bulls Say

Synalloy's ability to build pipe up to 40 feet long without making circumferential welds is a rare capability that helps the company generate higher margins when demand is strong.
The relatively new management team has reinvigorated the business and has the company pointed in the right direction.
If Synalloy and domestic peers win an anti-dumping case against stainless steel pressure pipes from Malaysia, Thailand, and Vietnam, it could improve the domestic pricing environment in the coming years. Read more 

Bears Say

The significant expansion of nickel pig iron production over the last five years means that the record-high nickel prices the company enjoyed in 2007 are unlikely to return anytime soon.
Synalloy's acquisition strategy to diversify the business and reduce cyclicality may not be in shareholders' best interest, as investors can diversify in their own portfolios at a lower cost.
Synalloy generally lacks pricing power in its stainless steel pipe business and usually needs to reduce its prices to retain market share in periods of higher than usual foreign imports. Read more 

Management

Before becoming CEO in January 2011, Craig Bram served on Synalloy's board for six years. Bram's background includes founding a capital management firm followed by a CEO position at a document management company. We're encouraged by the board's recent   Read more 

Profile

Synalloy manufactures metal piping, piping systems, and fiberglass and steel tanks used in the chemical, paper, power, water, and liquefied natural gas industries, among   Read more 

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