MTW  Manitowoc Company Inc.

Exchange

NYSE

Sector

Capital Goods

Industry

Construction/Ag Equipment/Trucks

Market Cap.

912.49M

Vuru Grade

52.67/100

Current Price

$6.57
-0.06 (-0.90%)

Growth Price

$6.74
Fairly valued

Stability Price

$19.66
Undervalued by 199.19%

Company Metrics

  • P/E 13.12
  • P/S 0.57
  • P/B 1.56
  • EPS -2.73
  • Cash ROIC 2.13%
  • Cash Ratio 0.07
  • Dividend 0 / 0%
  • Avg. Vol. 1.92M
  • Shares 138.89M
  • Market Cap. 912.49M

Company Description

The Manitowoc Company, Inc. engages in the manufacture and sale of cranes and related products, and foodservice equipment. The company operates through two segments, Cranes and Related Products, and Foodservice Equipment. The Cranes and Related Products segment designs, manufactures, and markets a range of lattice-boom crawler cranes, mobile telescopic cranes, tower cranes, and boom trucks. Its cr... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Insider Trading Activity Manitowoc Company, Inc. (The) (NYSE:MTW) – Insider ...
Market Exclusive - Feb 21, 2017
Aaron H Ravenscroft , Insider of Manitowoc Company, Inc. (The) (NYSE:MTW) reportedly Bought 5,000 shares of the company's stock at an average price of 6.57 for a total transaction amount of $32,850.00 SEC Form.
Impact Score Of Manitowoc Company, Inc. (The) (NYSE:MTW) At 95 - Stock Observer
Just the Facts on The Manitowoc Company, Inc. (MTW) - StockNewsJournal
Manitowoc Company Inc. (The) (MTW) Soars 6.78% on February 15
Equities.com - Feb 15, 2017
Manitowoc Company Inc. (The) (MTW) had a good day on the market for Wednesday February 15 as shares jumped 6.78% to close at $6.77.
Dividend Growth of Manitowoc Company, Inc. (The)(MTW) - Highland Mirror
Manitowoc Company, Inc. (The) (MTW) SVP Thomas G. Musial Sells 23000 Shares - The Cerbat Gem
Manitowoc Company Inc. (The) (MTW) Moves Higher on Volume Spike for January 27
Equities.com - Jan 27, 2017
Manitowoc Company Inc. (The) (MTW) traded on unusually high volume on Jan. 27, as the stock gained 7.45% to close at $7.50.
Manitowoc Company, Inc. (The) (MTW) Lifted to “Hold” at Zacks Investment Research - The Cerbat Gem
analysts Estimates and Ratings: The Manitowoc Company, Inc. (NYSE:MTW) - News Oracle
Manitowoc Company Inc. (The) (MTW) Moves Higher on Volume Spike for January 25
Equities.com - Jan 25, 2017
Manitowoc Company Inc. (The) (MTW) traded on unusually high volume on Jan. 25, as the stock gained 4.52% to close at $6.71.
Q2 2017 EPS Estimates for Manitowoc Company, Inc. (The) Lifted by Analyst (MTW) - Sports Perspectives
Stock Returns: China Yuchai International Limited (NYSE:CYD) versus The ... - CML News
Trading Covered Calls: The Manitowoc Company Inc (NYSE:MTW) : Covered Calls ...
CML News - 7 hours ago
As we look at The Manitowoc Company Inc we note that a covered call is one of the most common implementations of an option strategy, but the analysis completed when employing the covered call often times lacks the necessary rigor especially surrounding ...
Manitowoc Company Inc. (The) (MTW) Plunges 5.2% on January 30
Equities.com - Jan 30, 2017
Manitowoc Company Inc. (The) (MTW) had a rough trading day for Monday January 30 as shares tumbled 5.2%, or a loss of $-0.39 per share, to close at $7.11.
The Manitowoc Company (MTW) in Focus: Stock Gains 7.5% - Nasdaq
Manitowoc -5% following dismal Q4 results, weak 2017 consensus - Seeking Alpha
Forward Earnings Estimate of Manitowoc Company, Inc. (The)(MTW)
Highland Mirror - Feb 10, 2017
Manitowoc Company, Inc. (The) will release next earnings on May 03, 2017 with an estimated EPS consensus of $-0.15. Based on the consensus of stock financial advisors the stock has a price target of $5.35.
Trader's Watch List: The Manitowoc Company, Inc. (NYSE:MTW)
TopChronicle - Feb 6, 2017
The Manitowoc Company, Inc. (NYSE:MTW) traded with the volume of 1.93 Million in the previous trading session. The Stock opened its session at $6.55 and closed at $6.51 by showing decrease of -2.84 percent.
Manitowoc Company, Inc. (The) (MTW) PT Raised to $7.25 at Jefferies Group LLC - The Cerbat Gem
Popular Industrial Goods stock to Watch: The Manitowoc Company, Inc.'s (MTW) - Is stories
Trading Scope: Checking on Shares of The Manitowoc Company, Inc. (NYSE:MTW)
Baldwin Journal - 10 hours ago
Many investors may be looking to track stock price momentum by looking at different historical information. The Manitowoc Company, Inc. (NYSE:MTW) currently has a 6 month price index of 1.35583. The six month price index is simply measured by dividing ...
Option Market: The Manitowoc Company Inc Risk Hits An Elevated Level
CML News - Feb 18, 2017
We're going to look at a proprietary risk rating for the next 30-days built by Capital Market Laboratories (CMLviz) based on a large number of interactions of data points, many of which come directly from the option market for The Manitowoc Company Inc ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for MTW to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate MTW's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$6.57 Current Price

$6.74 Growth Price (DCF)

Fairly valued


Growth Rate Assumed by Market: -19.53%


Future Free Cash Flow Growth Rate: -13.4%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$19.66 Stability Price (EPV)

Undervalued by 199.19%


Discount Rate: 15.0%

$19.00 Book Price

Undervalued by 189.20%


Poor Cash Return on Invested Capital over the past 5 years

MTW has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

MTW has only created $2.13 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow -49.30M 89.40M 212.40M 13.50M 29.90M
divided by
Invested Capital 2.79B 2.84B 2.80B 2.74B 2.50B
Cash ROIC -1.77% 3.15% 7.60% 0.49% 1.20%

Inconsistent Return on Equity over the past 5 years

MTW has generated adequate returns with capital that shareholders have invested. However, there has been some inconsistency from year-to-year. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

MTW has generated $11.86 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income -17.00M 92.60M 167.60M 148.40M 63.50M
divided by
Stockholders' Equity 483.40M 600.30M 775.50M 824.10M 819.50M
Return on Equity -3.52% 15.43% 21.61% 18.01% 7.75%

Excellent Business Performance over the past 10 years

MTW has been able to maintain profitability in good times and bad. This could mean MTW has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

MTW has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 226.50M 118.60M 158.70M 266.10M 173.20M -49.30M 89.40M 212.40M 13.50M 29.90M

Weak Balance Sheet

MTW's financial position is not ideal. The key is to check whether MTW is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 176.10M 366.40M 175.60M 108.40M 86.40M 71.30M 76.10M 54.90M 68.00M 63.40M
Current Assets 1.14B 1.58B 2.13B 1.26B 1.16B 1.24B 1.33B 1.26B 1.19B 1.01B
Total Assets 2.22B 2.87B 6.07B 4.28B 4.01B 3.97B 4.06B 3.98B 3.82B 3.45B
Current Liabilities 935.40M 1.07B 1.62B 1.14B 1.03B 1.10B 1.15B 1.13B 1.01B 883.60M
Total Liabilities 1.45B 1.52B 4.77B 3.67B 3.53B 3.48B 3.46B 3.20B 2.99B 2.63B
Stockholder' Equity 774.50M 1.35B 1.30B 607.90M 481.90M 483.40M 600.30M 775.50M 824.10M 819.50M
Current Ratio 1.22 1.47 1.32 1.10 1.13 1.12 1.16 1.12 1.17 1.15
TL-to-TA 0.65 0.53 0.79 0.86 0.88 0.88 0.85 0.80 0.78 0.76

Consistent Reinvestment of Profits over the past 10 years

MTW has consistently retained profits. This may put MTW in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, MTW can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 587.40M 903.80M 882.70M 188.70M 104.70M 113.60M 222.10M 353.20M 486.90M 539.50M
Retained Earnings Growth - 53.86% -2.33% -78.62% -44.52% 8.50% 95.51% 59.03% 37.85% 10.80%

Highly Competitive Industry over the past 10 years

It's likely that MTW is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely MTW invests heavily in R&D and Sales, General & Administrative expenses.

Only $0.44 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 166.20M 336.70M -10.70M -706.70M -76.10M -17.00M 92.60M 167.60M 148.40M 63.50M
divided by
Revenue 2.93B 4.01B 4.50B 3.78B 3.14B 3.65B 3.93B 4.05B 3.89B 3.44B
Net Profit Margin 5.67% 8.41% -0.24% -18.68% -2.42% -0.47% 2.36% 4.14% 3.82% 1.85%

Inconsistent Gross Profit Margins over the past 10 years

MTW has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$31.22 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 647.30M 911.60M 1.02B 824.60M 765.40M 3.65B 934.40M 1.02B 986.10M 833.20M
divided by
Revenue 2.93B 4.01B 4.50B 3.78B 3.14B 3.65B 3.93B 4.05B 3.89B 3.44B
Gross Margin 22.07% 22.76% 22.56% 21.80% 24.36% 100.00% 23.79% 25.24% 25.37% 24.25%

High Capital Intensity over the past 10 years

MTW spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

64.23% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 67.60M 119.60M 150.30M 72.50M 36.10M 64.90M 72.90M 110.70M 84.80M 68.10M
divided by
Net Income 166.20M 336.70M -10.70M -706.70M -76.10M -17.00M 92.60M 167.60M 148.40M 63.50M
Capital Expenditure Ratio 40.67% 35.52% -1,404.67% -10.26% -47.44% -381.76% 78.73% 66.05% 57.14% 107.24%

Very Strong Dividend History over the past 10 years

MTW has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests MTW is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid 8.60M 9.50M 10.40M 10.50M 10.60M 10.60M 10.60M 10.70M 10.80M 10.90M
divided by
Shares Outstanding 125.43M 127.54M 129.93M 130.27M 130.58M 133.38M 133.32M 135.33M 137.35M 137.43M
Dividend Paid Per Share 0.07 0.07 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08
Price at Year End 28.59 47.33 7.98 9.88 12.77 9.19 15.22 23.33 22.34 15.25
Dividend Yield 0.24% 0.16% 1.00% 0.82% 0.64% 0.86% 0.52% 0.34% 0.35% 0.52%

History of Stock Buybacks over the past 10 years

MTW has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 125.43M 127.54M 129.93M 130.27M 130.58M 133.38M 133.32M 135.33M 137.35M 137.43M
Stock Bought Back - -1.65% -1.84% -0.26% -0.24% -2.10% 0.05% -1.49% -1.47% -0.06%
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