U.S. Capital Goods Undervalued over 20% based on DCF

Legence

Market Cap: US$7.6b

Provides engineering, installation, and maintenance services for mission-critical systems in buildings in the United States.

Terex

Market Cap: US$7.5b

Manufactures industrial equipment for materials processing machinery, waste and recycling solutions, mobile elevating work platforms, and equipment for the electric utility industry worldwide.

AeroVironment

Market Cap: US$7.1b

A defense technology provider, designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally.

Gates Industrial

Market Cap: US$6.8b

Manufactures and sells engineered power transmission and fluid power solutions in the United States, rest of North America, South America, the United Kingdom, Luxembourg, rest of Europe, the Middle East, Africa, India, East Asia, and Greater China.

Armstrong World Industries

Market Cap: US$6.7b

Engages in the design, manufacture, and sale of ceiling and wall solutions in the Americas.

Fortune Brands Innovations

Market Cap: US$6.1b

Provides home, security, and digital products for residential home repair, remodeling, new construction, and security applications in the United States and internationally.

Middleby

Market Cap: US$6.1b

Operates in the foodservice industry worldwide.

SOLV Energy

Market Cap: US$6.0b

Provides infrastructure services to the power industry in the United States.

Construction Partners

Market Cap: US$5.9b

A civil infrastructure company, constructs and maintains roadways in Alabama, Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee, and Texas.

VSE

Market Cap: US$5.7b

Engages in providing aviation aftermarket parts distribution and maintenance, repair, and overhaul services for air transportation assets for commercial and government markets.

Granite Construction

Market Cap: US$5.4b

Provides infrastructure solutions for public and private clients in the United States.

ESAB

Market Cap: US$5.4b

Engages in the formulation, development, manufacture, and supply of consumable products and equipment for use in cutting, joining, automated welding, and gas control equipment.

Herc Holdings

Market Cap: US$5.0b

Operates as an equipment rental supplier in the United States and internationally.

Primoris Services

Market Cap: US$4.9b

Provides infrastructure services primarily in the United States and Canada.

UFP Industries

Market Cap: US$4.8b

Designs, manufactures, and supplies wood and non-wood composites, and other materials in the United States and internationally.

CECO Environmental

Market Cap: US$4.7b

Provides critical solutions in industrial air quality, industrial water treatment, and energy transition solutions in the United States, the United Kingdom, the Netherlands, China, and internationally.

Trex Company

Market Cap: US$4.5b

Manufactures and sells composite decking and railing products in the United States.

Atmus Filtration Technologies

Market Cap: US$4.2b

Designs, manufactures, and sells filtration products under the Fleetguard brand in the United States and internationally.

Worthington Enterprises

Market Cap: US$2.7b

Operates as an industrial manufacturing company.

Centuri Holdings

Market Cap: US$2.7b

Operates as a utility infrastructure services company in North America.

Ducommun

Market Cap: US$2.6b

Provides engineering and manufacturing services for products and applications used in the aerospace and defense, industrial, medical, and other industries in the United States.

DXP Enterprises

Market Cap: US$2.6b

Engages in distributing maintenance, repair, and operating (MRO) products, equipment, and services in the United States, Canada, and internationally.

York Space Systems

Market Cap: US$2.5b

Operates as a space and defense prime providing a comprehensive suite of mission-critical solutions for national security, government and commercial customers in the United States.

Blue Bird

Market Cap: US$2.4b

Designs, engineers, manufactures, and sells school buses in the United States, Canada, and internationally.

Gorman-Rupp

Market Cap: US$2.1b

Designs, manufactures, and sells pumps and pump systems in the United States and internationally.

Midera Food Processing

Market Cap: US$2.0b

Manufactures preparation, cooking, packaging food handling and food safety equipment for the food processing industry in United States and Internationally.

Tennant

Market Cap: US$1.5b

Designs, manufactures, and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

Global Industrial

Market Cap: US$1.3b

Through its subsidiaries, operates as an industrial distributor of various industrial and maintenance, repair, and operation (MRO) products in the United States and Canada.

NPK International

Market Cap: US$1.2b

A temporary worksite access solutions company, manufactures, sells, and rents recyclable composite matting products in the United States and United Kingdom.

Lindsay

Market Cap: US$1.2b

Provides water management and road infrastructure products and services in the United States and internationally.

Douglas Dynamics

Market Cap: US$1.0b

Operates as a manufacturer and upfitter of commercial vehicle attachments and equipment in North America.

Array Technologies

Market Cap: US$979.9m

Engages in the manufacture and sale of solar tracking technology products in the United States, Spain, Brazil, Australia, and internationally.

Limbach Holdings

Market Cap: US$918.8m

Operates as a building systems solution company in the United States.

LSI Industries

Market Cap: US$857.7m

Manufactures, markets, and sells non-residential lighting and retail display solutions in the United States.

Insteel Industries

Market Cap: US$576.0m

Manufactures and markets steel wire reinforcing products for concrete construction applications.

Orion Group Holdings

Market Cap: US$558.2m

Operates as a specialty construction company for the infrastructure, industrial, and building sectors in the United States, Canada, and the Caribbean Basin.