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Manitowoc Company (MTW)
NYSE:MTW
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Manitowoc Company
(NYSE:MTW)
65Neutral
Positive Factors
Long-term Optimism
Management expressed long-term optimism on interest rate cuts, megaprojects, and Middle East activity.
Middle East Activity
The level of activity in the Middle East remains very strong, with Saudi projects and residential construction in Dubai moving forward.
Negative Factors
Financial Performance
EPS and EBITDA came in below consensus with persistent European tower crane softness a continued headwind.
Guidance
Adjusted EBITDA was guided to the low end of the previously issued $125-140 million range.
Orders and Backlog
Orders were down 20% year/year to $424.7 million, with book-to-bill at 0.82x.
Manitowoc Company (MTW) vs. S&P 500 (SPY)
Market Cap
$286.02M
Dividend YieldN/A
Average Volume (3M)248.27K
Price to Earnings (P/E)5.2
Beta (1Y)1.91
Revenue Growth-2.24%
EPS Growth42.13%
CountryUS
Employees4,800
SectorIndustrials
Sector Strength61
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)1.56
Shares Outstanding35,442,130
10 Day Avg. Volume296,936
30 Day Avg. Volume248,268
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)N/A
Price to Sales (P/S)0.15
Price to Cash Flow (P/CF)0.70
P/FCF Ratio0.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.33Price Target Upside35.92% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering3
Manitowoc Company Business Overview & Revenue Model
Company DescriptionThe Manitowoc Company, Inc. provides engineered lifting solutions in the Americas, Europe, Africa, the Middle East, and the Asia Pacific. It designs, manufactures, and distributes crawler-mounted lattice-boom cranes under the Manitowoc brand; a line of top-slewing and self-erecting tower cranes under the Potain brand; mobile hydraulic cranes under the Grove, Shuttlelift, and National Crane brands; and hydraulic boom trucks under the National Crane brand. The company also provides crane product parts and services; and crane rebuilding, remanufacturing, and training services. Its crane products are used in various applications, including energy production/distribution and utilities; petrochemical and industrial projects; infrastructure, such as road, bridge, and airport construction; and commercial and high-rise residential construction. The company serves a range of customers, including dealers, rental companies, contractors, and government entities in the petrochemical, industrial, commercial construction, power and utilities, infrastructure, and residential construction end markets. The Manitowoc Company, Inc. was founded in 1902 and is headquartered in Milwaukee, Wisconsin.
How the Company Makes MoneyManitowoc Company generates revenue through the sale of its crane products and related services. The company's primary revenue stream comes from manufacturing and selling a wide array of cranes to industries worldwide. In addition to product sales, Manitowoc also earns income from offering aftermarket support services, including crane maintenance, parts supply, and equipment upgrades. The company benefits from its extensive global distribution network and strong customer relationships, which contribute to its sales and service revenue. Strategic partnerships and joint ventures in key markets also play a role in enhancing Manitowoc's market presence and financial performance.
Manitowoc Company Financial Statement Overview
Summary
Manitowoc Company exhibits moderate financial health with stable profitability and a balanced capital structure. While the company has improved net margins and return on equity, revenue growth is a concern. Cash flow generation needs enhancement to support sustainable growth.Income Statement
The company's income statement reveals a stable gross profit margin of approximately 17.2% TTM, with a slight decrease from the previous year. Net profit margin improved to 2.6% TTM from 1.8% last year, indicating better cost management. However, revenue decreased by 2.2% compared to the previous year, reflecting a contraction. EBIT and EBITDA margins are modest at 2.8% and 4.6% TTM, respectively, showing limited operational efficiency.65
Positive
Balance Sheet
The balance sheet demonstrates moderate leverage with a debt-to-equity ratio of 0.68, indicating a balanced capital structure. Return on equity improved to 8.7% TTM, reflecting enhanced profitability. The equity ratio stands at 38.6% TTM, providing a stable financial base, but there's room for improvement in asset utilization.70
Positive
Cash Flow
Cash flow analysis shows a positive shift with a free cash flow turnaround to $1.9 million TTM from negative in the previous year. However, the operating cash flow to net income ratio is low at 0.85, indicating challenges in cash conversion. The free cash flow to net income ratio is significantly lower, reflecting high capital expenditure needs.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.18B | 2.23B | 2.03B | 1.72B | 1.44B | Gross Profit |
| 375.00M | 425.20M | 364.50M | 307.20M | 254.70M | EBIT |
| 51.80M | 92.40M | 84.80M | 46.50M | 38.60M | EBITDA |
| 112.90M | 139.20M | -23.50M | 94.40M | 81.50M | Net Income Common Stockholders |
| 55.80M | 39.20M | -123.60M | 11.00M | -19.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 48.00M | 34.40M | 64.40M | 75.40M | 128.70M | Total Assets |
| 1.66B | 1.71B | 1.62B | 1.78B | 1.60B | Total Debt |
| 414.50M | 419.30M | 419.90M | 436.40M | 339.30M | Net Debt |
| 389.20M | 384.90M | 355.50M | 361.00M | 210.60M | Total Liabilities |
| 1.02B | 1.10B | 1.08B | 1.11B | 960.00M | Stockholders Equity |
| 2.86B | 603.30M | 537.80M | 662.40M | 643.50M |
| Cash Flow | Free Cash Flow | |||
| 3.50M | -14.40M | 15.10M | 35.80M | -61.40M | Operating Cash Flow |
| 49.20M | 63.00M | 76.90M | 76.20M | -35.10M | Investing Cash Flow |
| -40.40M | -71.80M | -58.00M | -226.30M | -25.80M | Financing Cash Flow |
| 6.70M | -21.40M | -29.90M | 100.90M | -14.80M |
Manitowoc Company Technical Analysis
Negative
7.60
Price Trends
9.65
Negative
9.65
Negative
9.95
Negative
Market Momentum
-0.29
Positive
35.15
Neutral
11.86
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTW, the sentiment is Negative. The current price of 7.6 is below the 20-day moving average (MA) of 8.84, below the 50-day MA of 9.65, and below the 200-day MA of 9.95, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 35.15 is Neutral, neither overbought nor oversold. The STOCH value of 11.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MTW.
Manitowoc Company Risk Analysis
Manitowoc Company disclosed 29 risk factors in its most recent earnings report. Manitowoc Company 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
Manitowoc Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.43B | 7.41 | 19.13% | 1.85% | -0.47% | -34.74% | |
74 Outperform | $122.84B | 20.06 | 27.91% | 1.36% | -20.93% | -34.33% | |
73 Outperform | $40.85B | 10.45 | 41.27% | 2.41% | 0.14% | 444.36% | |
70 Outperform | $49.31B | 11.88 | 24.93% | 1.42% | -4.29% | -9.76% | |
68 Neutral | $5.76B | 8.60 | 17.34% | 2.12% | 11.36% | 13.78% | |
65 Neutral | $286.02M | 5.16 | 8.98% | ― | -2.24% | 42.13% | |
62 Neutral | $7.68B | 13.06 | 3.21% | 3.34% | 3.62% | -14.40% |
* Industrials Sector Average
Performance Comparison
MTW
Manitowoc Company
7.60
-5.97
-43.99%
CMI
Cummins
281.75
-10.52
-3.60%
DE
Deere
444.19
52.73
13.47%
OSK
Oshkosh
84.49
-35.45
-29.56%
PCAR
Paccar
88.77
-24.76
-21.81%
TEX
Terex
34.18
-28.35
-45.34%
Manitowoc Company Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -22.21% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call revealed a mixed performance for The Manitowoc Company, Inc. in 2024. While there were significant achievements in non-new machine sales and safety, challenges persisted with a decreased backlog, reduced EBITDA, and market difficulties in Europe and Asia. The sentiment was cautiously optimistic with some positive indicators in specific regions, yet overshadowed by ongoing uncertainties and competitive pressures.Highlights
Record Non-New Machine Sales
Achieved a new record with $629 million in non-new machine sales, reflecting significant growth in this segment.
Growth in Field Service Technicians
Increased field service technician count by 7% to over 467 members, enhancing service capabilities.
Product Innovations
Launched thirteen new cranes including an EV self-erecting tower crane, expanding product offerings.
Free Cash Flow and Liquidity
Generated $100 million of free cash flow in Q4 and ended the year with $321 million in liquidity.
Safety Achievements
Ended the year with a recordable incident rate of 1.19, marking one of the safest years in company history.
Environmental Initiatives
Reduced greenhouse gas intensity by 6%, with a cumulative reduction of 36% since 2019.
Middle East Market Growth
Fourth-quarter orders in the Middle East were up over 44% year over year.
Lowlights
Decreased Backlog
Backlog at year-end was $650 million, a year-over-year decrease of 29%.
Decline in Adjusted EBITDA
Adjusted EBITDA for the year was $128 million, a decrease of 27% year over year.
Challenges in European and Asia Pacific Markets
Continued weakness in the European tower crane market and intense competition in Asia, particularly from Chinese exporters.
Fourth Quarter Revenue Flat
Net sales in the fourth quarter were $596 million, flat versus a year ago.
Reduced Full-Year Orders
2024 orders totaled $1.923 billion, an 8% decrease year over year.
Company Guidance
During The Manitowoc Company, Inc.'s fourth quarter and full-year 2024 earnings call, several key metrics and guidance for 2025 were provided. The company reported $2.2 billion in sales and $128 million in adjusted EBITDA for 2024, with $100 million in free cash flow generated during the fourth quarter and an ending liquidity of $321 million. Safety achievements included an RIR of 1.19, marking the second-best result in the company's history. Environmental initiatives led to a 6% reduction in greenhouse gas intensity, equating to $100,000 in savings. For 2025, the company expects net sales between $2.175 billion and $2.275 billion, with adjusted EBITDA ranging from $120 million to $145 million. Free cash flows, excluding any EPA settlement impact, are projected to be between $55 million and $85 million. Despite uncertainties, marginal improvements are expected in the US and European markets, while challenges persist in Asia.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.