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Columbus Mckinnon (CMCO)
:CMCO

Columbus Mckinnon (CMCO) AI Stock Analysis

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Columbus Mckinnon

(NASDAQ:CMCO)

61Neutral
Columbus McKinnon shows solid revenue growth and strategic positioning with its recent acquisition, yet faces challenges in profitability and cash flow. Technical indicators suggest bearish momentum, and valuation metrics point to potential overvaluation. While strategic moves offer long-term potential, short-term economic and operational pressures remain significant.

Columbus Mckinnon (CMCO) vs. S&P 500 (SPY)

Columbus Mckinnon Business Overview & Revenue Model

Company DescriptionColumbus McKinnon Corporation designs, manufactures, and markets intelligent motion solutions to ergonomically move, lift, position, and secure materials worldwide. The company offers electric, air-powered, lever, and hand hoists; hoist trolleys, explosion-protected and custom engineered hoists, and winches; crane systems, such as crane components and kits, enclosed track rail systems, mobile and jib cranes, and fall protection systems, as well as material handling solutions; rigging equipment comprising below-the-hook lifting devices, shackles, chains and chains accessories, forestry and hand tools, lifting slings, lashing systems, and tie-downs and load binders; rotary unions and swivel joints; and mechanical and electromechanical actuators. It also provides power and motion technology products, including AC motor controls and line regenerative systems, automation and diagnostics, brakes, cable and festoon systems, collision avoidance systems, conductor bar systems, DC motor and magnet control systems, elevator drives, inverter duty motors, mining drives, pendant pushbutton stations, radio controls, and wind inverters; power delivery subsystems; overhead aluminum light rail workstations; and low profile, flexible chain, large scale, sanitary, and vertical elevation conveyor systems, as well as pallet system conveyors and accumulation systems. The company serves market verticals, including general industries, transportation, energy and utilities, process industries, industrial automation, construction and infrastructure, food and beverage, entertainment, life sciences, consumer packaged goods, and e-commerce/supply chain/warehousing. It offers its products to end users directly, as well as through distributors, independent crane builders, material handling specialists and integrators, government agencies, original equipment manufacturers, and engineering procurement and construction firms. The company was founded in 1875 and is headquartered in Buffalo, New York.
How the Company Makes MoneyColumbus McKinnon generates revenue primarily through the sale of its material handling products and systems. The company's key revenue streams include the distribution of hoists, cranes, actuators, and rigging tools, which are sold directly to end-users and through a network of distributors and industrial dealers. Additionally, Columbus McKinnon offers aftermarket services such as maintenance, repair, and parts replacement, which contribute to its recurring revenue. Significant partnerships with industrial and construction companies enhance its market reach and sales potential. The company's earnings are also influenced by its strategic focus on innovation, operational efficiency, and expanding its product portfolio to meet evolving customer needs in various sectors.

Columbus Mckinnon Financial Statement Overview

Summary
Columbus Mckinnon demonstrates consistent revenue growth and operational efficiency but faces challenges in translating revenue into net profit, affecting overall profitability metrics. The balance sheet shows a robust equity position, yet increasing leverage warrants caution. Cash flow constraints highlight a need for improved cash generation.
Income Statement
78
Positive
Columbus Mckinnon has shown strong revenue growth with a notable increase from $809.2M in 2020 to $1,013.5M in 2024. The company has maintained solid gross profit margins, with a peak of 34.3% in 2023. However, net profit margin has shown fluctuations, decreasing to 0.95% in the latest TTM, which suggests some challenges in converting revenue to profit. EBITDA margin remains healthy, indicating operational efficiency.
Balance Sheet
75
Positive
The balance sheet reflects a stable equity position, with stockholders' equity growing from $463.6M in 2020 to $871.6M in TTM 2024. The debt-to-equity ratio has increased, reaching 0.56 in TTM, suggesting a higher leverage risk. However, the equity ratio remains strong at over 50%, indicating a solid financial foundation. Return on equity has seen a decline, mirroring the drop in net income.
Cash Flow
70
Positive
Operating cash flow has seen a decrease from $106.8M in 2020 to $48.6M in TTM 2024, reflecting pressure on cash generation capabilities. The free cash flow has contracted as well, with fluctuating growth rates. Despite these challenges, the company maintains a positive free cash flow, supporting ongoing capital needs.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
981.64M1.01B936.24M906.55M649.64M809.16M
Gross Profit
325.30M347.71M342.10M315.73M220.22M283.19M
EBIT
75.22M109.41M97.84M73.78M21.41M89.82M
EBITDA
102.87M145.43M146.72M105.57M56.29M128.68M
Net Income Common Stockholders
9.36M46.63M48.43M29.66M9.11M59.67M
Balance SheetCash, Cash Equivalents and Short-Term Investments
114.13M114.13M133.18M115.39M202.13M114.45M
Total Assets
1.83B1.83B1.70B1.69B1.15B1.09B
Total Debt
599.63M599.63M526.08M511.23M248.95M251.31M
Net Debt
485.50M485.50M392.91M395.84M46.83M136.86M
Total Liabilities
943.88M943.88M864.66M912.90M620.28M629.69M
Stockholders Equity
882.06M882.06M833.80M772.80M530.15M463.58M
Cash FlowFree Cash Flow
24.86M42.38M71.00M35.78M86.59M97.36M
Operating Cash Flow
48.61M67.20M83.64M48.88M98.89M106.80M
Investing Cash Flow
-21.62M-133.36M-13.93M-554.31M-5.55M-9.96M
Financing Cash Flow
-89.07M48.20M-49.99M420.70M-10.19M-51.55M

Columbus Mckinnon Technical Analysis

Technical Analysis Sentiment
Negative
Last Price17.04
Price Trends
50DMA
24.00
Negative
100DMA
30.63
Negative
200DMA
32.27
Negative
Market Momentum
MACD
-1.39
Negative
RSI
30.70
Neutral
STOCH
19.22
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMCO, the sentiment is Negative. The current price of 17.04 is below the 20-day moving average (MA) of 17.76, below the 50-day MA of 24.00, and below the 200-day MA of 32.27, indicating a bearish trend. The MACD of -1.39 indicates Negative momentum. The RSI at 30.70 is Neutral, neither overbought nor oversold. The STOCH value of 19.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMCO.

Columbus Mckinnon Risk Analysis

Columbus Mckinnon disclosed 24 risk factors in its most recent earnings report. Columbus Mckinnon reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Columbus Mckinnon Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TETEX
78
Outperform
$2.56B7.7619.13%1.77%-0.47%-34.74%
TRTRN
70
Neutral
$2.33B17.3114.57%4.01%3.21%29.59%
KMKMT
65
Neutral
$1.67B17.787.67%3.70%-2.46%-19.05%
MLMLR
64
Neutral
$485.37M7.7516.96%1.79%9.03%8.89%
62
Neutral
$8.05B13.604.04%3.11%3.70%-14.19%
61
Neutral
$487.56M53.651.07%1.64%-2.02%-80.76%
TWTWI
53
Neutral
$542.24M-1.15%1.32%-104.92%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CMCO
Columbus Mckinnon
16.93
-25.84
-60.42%
KMT
Kennametal
21.30
-2.32
-9.82%
MLR
Miller Industries
42.37
-6.59
-13.46%
TEX
Terex
37.78
-24.49
-39.33%
TWI
Titan International
8.39
-3.90
-31.73%
TRN
Trinity Industries
28.06
1.80
6.85%

Columbus Mckinnon Earnings Call Summary

Earnings Call Date: Feb 10, 2025 | % Change Since: -51.97% | Next Earnings Date: May 28, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a transformational acquisition with Kito Crosby that is expected to enhance scale and provide significant strategic and financial benefits. However, the company faced challenges with declining sales, economic uncertainty, and foreign exchange impacts. While the acquisition offers promising growth opportunities, near-term headwinds and macroeconomic pressures remain a concern.
Highlights
Transformational Acquisition
Columbus McKinnon has entered into an agreement to combine with Kito Crosby, creating a scaled intelligent motion platform with over $2 billion in sales and a pro forma adjusted EBITDA margin of 23%, with expected $70 million of net cost synergies by year 3.
Strategic Growth Opportunities
The combination positions Columbus McKinnon to benefit from global industry megatrends such as nearshoring, labor scarcity, and infrastructure investment, with a broader portfolio and geographic reach.
Strong Free Cash Flow and Debt Reduction
The combined entity is expected to generate significant free cash flow, with plans to reduce net leverage ratio to approximately 3 times by the end of year 2 after the deal closes.
Healthy Project Funnel and Quotation Activity
Project-related backlog was up 3%, driven by strength in precision conveyance and linear motion, with quotation activity increasing to near record levels.
Lowlights
Decline in Sales and Orders
Third quarter net sales were down 8% from the prior year, with a 9% decrease in short-cycle sales and a 4% decrease in orders year-over-year.
Impact of Unfavorable Foreign Exchange
Adjusted EPS of $0.56 included an $0.11 impact due to unfavorable foreign exchange compared to the prior year.
Economic Uncertainty and Tariff Concerns
The demand environment was negatively impacted by U.S. policy uncertainty and economic softness in Europe, with potential tariff impacts on sales if implemented.
Free Cash Flow Decrease
Free cash flow decreased by $16.9 million versus the prior year, driven by elevated inventory levels and costs for unbilled overtime revenue recognition.
Company Guidance
During the Columbus McKinnon Corporation Third Quarter 2025 Earnings Conference Call, the company provided guidance indicating an expected mid-single-digit sales decrease and a low teens decline in adjusted EPS for fiscal year 2025. The company is managing costs in response to a challenging macroeconomic environment, while also focusing on operational execution and expense management. The adjusted EPS for the third quarter was $0.56, impacted by a $0.11 unfavorable foreign exchange movement compared to the prior year. The company announced a transformational acquisition of Kito Crosby, expecting $70 million in net cost synergies by year three, and a pro forma adjusted EBITDA margin of 23%. Despite near-term pressures, Columbus McKinnon remains optimistic about benefiting from industry megatrends and plans to end fiscal 2025 with a net leverage ratio of approximately three times.

Columbus Mckinnon Corporate Events

M&A TransactionsBusiness Operations and Strategy
Columbus McKinnon to Present at J.P. Morgan Conference
Neutral
Mar 11, 2025

Columbus McKinnon Corporation announced its participation in the J.P. Morgan 2025 Industrials Conference on March 11, 2025, where it will present its strategic outlook and growth prospects. The company is in the process of acquiring Kito Crosby, a move expected to enhance its market position despite potential integration challenges and regulatory hurdles. This acquisition is part of Columbus McKinnon’s ongoing strategy to expand its capabilities and capitalize on industry trends, although it faces risks related to cost synergies, business integration, and market conditions.

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Columbus McKinnon to Acquire Kito Crosby for $2.7B
Positive
Feb 12, 2025

Columbus McKinnon announced an agreement to acquire Kito Crosby Limited in a $2.7 billion transaction, enhancing its scale and strategic positioning in the intelligent motion solutions market. The acquisition is expected to create significant synergies, including $70 million in annual cost savings and a substantial boost in revenue and EBITDA, while also supporting long-term growth and operational excellence. The deal is backed by committed debt financing and a preferred equity investment from CD&R, and is expected to close within the year, pending regulatory approvals.

Business Operations and StrategyFinancial Disclosures
Columbus McKinnon Reports Q3 FY2025 Sales Decline
Negative
Feb 10, 2025

Columbus McKinnon reported its third-quarter fiscal year 2025 results, showing a 7.9% decline in net sales compared to the prior year, largely due to a decrease in short-cycle orders and the impact of unfavorable foreign exchange rates. Despite ongoing challenges, including U.S. policy uncertainty and weakening European economies, the company continues to focus on cost reduction and operational improvements, such as its footprint simplification initiatives, to align capacity with demand and support its long-term strategic plans.

Executive/Board Changes
Columbus McKinnon Announces Senior VP Retirement
Neutral
Feb 7, 2025

Columbus McKinnon Corporation announced the retirement of Bert A. Brant, Senior Vice President, Global Operations, effective February 28, 2025. The retirement agreement ensures a smooth transition and outlines Mr. Brant’s continued employment until the retirement date, eligibility for incentive payouts, equity award vesting, and health coverage. It also includes non-disparagement, non-solicitation, and non-competition covenants.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.