Noel Hendrickson Shares of Mettler-Toledo International Inc. ( NYSE: MTD ) have seen some real momentum as of late, having risen over 50% from the lows seen in the fall of last year. The weight instruments manufacturer has been a steady and long-term value creator, but slower growth and higher interest rates meant that shares fell from the highs of $1,700 in 2021, to levels just below the thousand mark late in 2023.
While this looked quite interesting, shares still traded at a demanding earnings multiple in their mid-twenties, with higher interest rates reducing the appeal of these earnings. While I was becoming more upbeat around the $1,000 mark, I have missed the boat as shares have seen a huge 50% rally over the past half a year, and frankly this feels somewhat of an overreaction. After all, the green shoots here are quite modest, not strong enough to justify such a move in my book as the very premium valuation has returned here.
About Mettler-Toledo Mettler-Toledo is a manufacturer and marketer of precision instruments, used in laboratory, industrial, and food applications. The laboratory segment is responsible for over half of sales, complemented by nearly 40% exposure in industrial sales, with the food retail segment being responsible for just a mid-single digit percentage of sales. The company is truly a global business with some 40% of sales generated in the Americas, some 30% of sales generated in Europe, and the rest within Asia/Rest of the world.
The company has se.