Columbus Mckinnon (CMCO) has disclosed a new risk, in the Accounting & Financial Operations category.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Columbus McKinnon faces a potential business risk related to the impairment of goodwill and other intangible assets from its acquisitions of montratec, Dorner Mfg. Corp, and Garvey Corporation, which are part of its Precision Conveyance reporting unit. Although a recent quantitative test indicated that the goodwill was not impaired, the narrow margin between the unit’s book and fair value suggests vulnerability to future impairment. Should the business underperform or market assumptions change unfavorably, significant impairment charges could arise, adversely affecting the company’s operating results and potentially impacting its stock trading price. Investors should be mindful of these risks as they could have material implications for Columbus McKinnon’s financial health.
Overall, Wall Street has a Hold consensus rating on CMCO stock based on 1 Hold.
To learn more about Columbus Mckinnon’s risk factors, click here.