Daily Stock Analysis: Compx International

Compx International Inc bears the ticker symbol (CIX), and this is my first mention of CIX for my new Viking Portfolio, or for any of my previous Dog of The Week Portfolios.

Image Compx

Compx International Inc is a manufacturer of security products. Those security products are primarily used in recreational transportation, postal, office & institutional furniture, cabinetry, tool storage, healthcare, and a variety of other industries.

Also,Compx is engaged in the manufacturing of stainless steel exhaust systems, gauges, throttle controls, and trim tabs for the recreational marine industry.

The company's operating segment includes Security Products and Marine Components. It generates maximum revenue from the Security Products segment, which manufactures mechanical and electrical cabinet locks and other locking mechanisms.

Its geographical segments are the United States, Canada, Mexico, and others, of which the United States accounts for the vast majority of revenue.

The company sells its products directly to original equipment manufacturers, as well as through distributors.

The company was incorporated in 1993 and is based in Dallas, Texas. CompX International Inc. is a subsidiary of NL Industries, Inc.

Three key data points gauge Compx International Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

CIX Price

Compx’s price per share was $18.04 at Wednesday’s market close. And, in the past year, CIX’s share price fell by $4.61 or about 40%.

If Compx’s stock trades in the range of $15.00 to $25.00 this next year, its recent $18.04 share price might reach $20.00 by next year. My upside estimate of $1.96 is exactly $6.25 short of the one year target estimate from one analyst covering CIX for a broker.

CIX Dividends

Compx’s most recent Quarterly dividend of 0.25 equates to an annual dividend of $1.00 to cast an annual yield of 5.54%.

CIX Returns

Adding the $1.00 annual estimated CIX dividend to my one-year price upside estimate of $1.96 reveals a $2.96 potential gross gain per share.

At Wednesday’s $18.04 closing price, a little over $1000 would buy 55 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.18 per share.

Subtract that maybe $0.18 brokerage cost from my estimated $2.96 gross gain makes a net gain of $2.78 X 55 shares = $152.90 for a 15.3% net gain including a 5.54% annual dividend yield.

In one year our $1K investment in shares of Compx International Inc would generate $55.40 in cash dividends. Of course, a single share of CIX stock at Wednesday's $18.04 price is over 3X less than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a good time to buy CIX shares based on their dividends for the coming year 2023. The current dividend from $1K invested is about 3.07 times greater than Compx’s single share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of Compx International Inc. Only time and money invested in this stock will determine its future market value.


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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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