Often a company will get a premium valuation because of a strong brand. But, in the case of LoJack (NASDAQ:LOJN), the company's market cap of $142 million seems a bit low for its brand presence.

The company has more than just a strong brand -- it also has a thriving business. Yesterday, LoJack reported its quarterly results. Second-quarter revenues increased 15% to $35.9 million from the year-ago period, and net income surged 39% to $2.3 million.

The company's earnings are real; the cash balance increased from $4.7 million at the end of last year to $8 million currently.

The growth should continue. After all, a car is stolen every 25.3 seconds in the U.S., and of course, car theft is a problem worldwide. For example, LoJack secured the rights to operate its system in the People's Republic of China. In other words, there is a lot of room for growth still left for a company such as LoJack.

The company continues to invest in its technologies, as well as forge key strategic alliances, such as with Motorola (NYSE:MOT). There is even an antiterrorism angle. For example, LoJack recently announced it is offering discounts for companies that use its antitheft devices for fleets that haul hazardous materials.

Over the last year, LoJack's stock has performed strongly, up about 60%. But, as has been the case with most small caps, the stock has traded in a range so far during 2004.

In the meantime, LoJack is not waiting around. It is still focused on producing growth quarter by quarter.

Fool contributor Tom Taulli is the author of The EDGAR Online Guide to Decoding Financial Statements. He does not own shares in any of the stocks mentioned.