Source: AOBC Investor Presentation Sept 2017
American Outdoor Brands Corporation (AOBC) is a good buy at the current price ($12.46) despite the seemingly moderate to high P/E multiple at first glance. First, the company produces good quality products that are recognized and well received by its loyal customers. Second, the P/E multiples are not truly representative of the company's intrinsic valuation given the cyclical nature of the company's business model.
AOBC Has Good Quality Products And Outstanding Financials
The company manufactures good quality handguns and firearms. Smith & Wesson has one of the highest brand recognition among gun owners and enthusiasts along with Ruger (NYSE:RGR) and Glock.
