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Oshkosh Corporation (OSK)
:OSK
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Oshkosh
(NYSE:OSK)77Outperform
Positive Factors
Guidance and Revenue Outlook
Management released guidance for 2025 that is ahead of estimates, providing confidence despite a decline in backlog and bookings.
Vocational Segment Performance
The vocational segment outperformed expectations, showing significant year-over-year growth and strong margins, particularly led by the firetruck segment.
Negative Factors
USPS Contract Uncertainty
Shares of Oshkosh Corporation fell 5% due to concerns over potential cancellation of USPS contracts for building a large battery electric vehicle fleet.
Oshkosh (OSK) vs. S&P 500 (SPY)
Market Cap
$6.29B
Dividend Yield1.94%
Average Volume (3M)829.25K
Price to Earnings (P/E)9.4
Beta (1Y)1.34
Revenue Growth11.36%
EPS Growth13.78%
CountryUS
Employees18,500
SectorIndustrials
Sector Strength66
IndustryIndustrial Machinery
Share Statistics
EPS (TTM)10.35
Shares Outstanding64,524,506
10 Day Avg. Volume702,637
30 Day Avg. Volume829,250
Financial Highlights & Ratios
PEG Ratio0.68
Price to Book (P/B)N/A
Price to Sales (P/S)0.59
Price to Cash Flow (P/CF)2.00
P/FCF Ratio2.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$129.11Price Target Upside31.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Oshkosh Business Overview & Revenue Model
Company DescriptionOshkosh Corporation (OSK) is a leading global manufacturer and marketer of specialty vehicles and vehicle bodies. The company operates through several segments, including Access Equipment, Defense, Fire & Emergency, and Commercial. Oshkosh's core products include aerial work platforms, military trucks and armored vehicles, fire apparatus, and refuse collection vehicles. With a focus on innovation and quality, Oshkosh serves a diverse range of customers, including government agencies, businesses, and private sector clients worldwide.
How the Company Makes MoneyOshkosh Corporation generates revenue primarily through the sale of its specialty vehicles and vehicle bodies across its various segments. The Access Equipment segment provides a significant portion of the revenue through the sale of aerial work platforms and telehandlers. The Defense segment contributes by supplying military and tactical vehicles to government defense departments, primarily the U.S. Department of Defense. The Fire & Emergency segment earns revenue through the production and sale of fire apparatus and emergency vehicles to municipal and industrial customers. The Commercial segment focuses on refuse collection vehicles and other specialty trucks for commercial applications. Additionally, Oshkosh benefits from aftermarket parts and service sales, which provide a steady revenue stream. The company's earnings are bolstered by strategic partnerships and long-term contracts, particularly within the defense sector, where reliability and performance standards are critical.
Oshkosh Financial Statement Overview
Summary
Oshkosh exhibits strong revenue and profit growth, with improvements in profitability margins. The balance sheet is healthy, with manageable debt levels, although the increase in total debt poses potential future risk. Operating cash flow is robust despite a decline in free cash flow due to increased capital expenditures.Income Statement
Oshkosh demonstrates strong revenue growth of 16.48% in the latest year, with substantial improvements in profitability. The gross profit margin improved to 18.40%, and the net profit margin rose to 6.20%, illustrating enhanced operational efficiency. The EBIT and EBITDA margins also saw significant improvements, reaching 8.75% and 10.25%, respectively. This indicates a robust trajectory in profitability and growth.85
Very Positive
Balance Sheet
The company's balance sheet shows a stable equity base with an equity ratio of 40.58%. The debt-to-equity ratio stands at 0.29, which is relatively low, indicating manageable leverage. Return on equity has significantly improved to 16.13%, showcasing effective use of shareholder funds. However, the increase in total debt raises a potential risk for future leverage.78
Positive
Cash Flow
Oshkosh's operating cash flow remained strong, closely aligning with net income, though free cash flow decreased by 14.72% due to increased capital expenditures. The operating cash flow to net income ratio is favorable, indicating efficient cash conversion. However, the decline in free cash flow suggests potential pressures on liquidity if capital expenditure continues to rise.72
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Sep 2021 | Sep 2020 | Sep 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 10.37B | 9.65B | 8.28B | 7.74B | 6.86B | 8.38B | Gross Profit |
| 1.90B | 1.77B | 1.05B | 1.22B | 1.12B | 1.52B | EBIT |
| 1.04B | 843.80M | 372.30M | 544.70M | 488.70M | 797.00M | EBITDA |
| 1.22B | 988.70M | 444.30M | 650.10M | 602.60M | 920.30M | Net Income Common Stockholders |
| 682.50M | 598.00M | 173.90M | 472.70M | 324.50M | 579.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 159.90M | 125.40M | 805.90M | 1.38B | 582.90M | 448.40M | Total Assets |
| 5.03B | 9.13B | 7.73B | 6.89B | 5.82B | 5.57B | Total Debt |
| 818.30M | 1.08B | 604.70M | 818.80M | 823.10M | 819.00M | Net Debt |
| 658.40M | 952.30M | -201.20M | -557.00M | 240.20M | 370.60M | Total Liabilities |
| 2.62B | 5.42B | 4.54B | 3.64B | 2.97B | 2.97B | Stockholders Equity |
| 2.41B | 3.71B | 3.19B | 3.25B | 2.85B | 2.60B |
| Cash Flow | Free Cash Flow | ||||
| -255.70M | 274.30M | 321.60M | 1.11B | 197.10M | 394.10M | Operating Cash Flow |
| 79.40M | 599.60M | 601.30M | 1.22B | 327.30M | 589.10M | Investing Cash Flow |
| -1.14B | -1.29B | -300.40M | -245.60M | -77.60M | -173.80M | Financing Cash Flow |
| 845.30M | 3.40M | -485.00M | -180.40M | -115.50M | -421.60M |
Oshkosh Technical Analysis
Negative
98.34
Price Trends
100.25
Negative
103.11
Negative
103.72
Negative
Market Momentum
-1.67
Positive
41.33
Neutral
32.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OSK, the sentiment is Negative. The current price of 98.34 is below the 20-day moving average (MA) of 104.11, below the 50-day MA of 100.25, and below the 200-day MA of 103.72, indicating a bearish trend. The MACD of -1.67 indicates Positive momentum. The RSI at 41.33 is Neutral, neither overbought nor oversold. The STOCH value of 32.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OSK.
Oshkosh Risk Analysis
Oshkosh disclosed 22 risk factors in its most recent earnings report. Oshkosh reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Oshkosh 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 | $2.68B | 8.15 | 19.13% | 1.68% | -0.47% | -34.74% | |
77 Outperform | $6.29B | 9.42 | 17.34% | 1.94% | 11.36% | 13.78% | |
74 Outperform | $126.89B | 20.72 | 27.91% | 1.25% | -20.93% | -34.33% | |
73 Outperform | $56.10B | 13.52 | 24.93% | 1.15% | -4.29% | -9.76% | |
72 Outperform | $47.41B | 12.16 | 41.27% | 2.07% | 0.14% | 444.36% | |
66 Neutral | $162.98B | 15.46 | 55.36% | 1.62% | -3.36% | 9.59% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% |
* Industrials Sector Average
Performance Comparison
OSK
Oshkosh
98.34
-15.05
-13.27%
CAT
Caterpillar
350.30
20.30
6.15%
CMI
Cummins
342.13
77.73
29.40%
DE
Deere
499.62
130.14
35.22%
PCAR
Paccar
110.06
0.50
0.46%
TEX
Terex
40.97
-16.70
-28.96%
Oshkosh Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: 3.32% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
Oshkosh Corporation delivered strong financial results for Fiscal 2024 with significant revenue and earnings growth, dividend increases, and notable product innovations. However, challenges in the Access and Defense segments, alongside higher interest expenses, present areas of concern. Overall, the company's performance is bolstered by its growth in the Vocational segment and strategic innovations.Highlights
Record Full-Year Revenue and EPS
Oshkosh Corporation reported full-year revenue of $10.8 billion and adjusted earnings per share of $11.74, reflecting strong financial performance.
Vocational Segment Growth
The Vocational segment achieved nearly 20% year-over-year revenue growth in Q4, with a robust adjusted operating income margin of 14%.
Dividend Increase
The company announced its 11th consecutive double-digit percent increase in the dividend, raising the quarterly dividend by $0.05 to $0.51 per share, nearly an 11% increase.
Innovative Product Launches
Oshkosh launched the Volterra ZFL eRCV, the industry's first purpose-built, fully integrated electric front-end loader refuse and recycling collection vehicle.
Dow Jones Sustainability World Index
Oshkosh was named to the Dow Jones Sustainability World Index for the sixth consecutive year, reflecting its commitment to sustainable business practices.
Lowlights
Access Segment Softness
The Access segment is experiencing softer near-term market conditions and is expected to have lower sales in 2025, particularly in the first half of the year.
Defense Segment Challenges
Defense results continue to be impacted by legacy fixed-price contracts, with expected improved pricing terms and production ramp-ups in 2025.
Interest Expenses Impact
Higher interest expenses on the revolving credit facility impacted adjusted earnings per share, despite higher operating income.
Company Guidance
During the Oshkosh Corporation Fiscal 2024 Fourth Quarter and Full Year Results Conference Call, the company provided robust guidance for 2025. They anticipate delivering adjusted earnings per share (EPS) in the range of $11, reflecting a balanced assessment of near-term outlook in their Access equipment segment and growth opportunities in their Vocational segment. Oshkosh expects 2025 consolidated sales of approximately $10.6 billion, with adjusted operating income around $1 billion. Despite a projected decline in Access sales to approximately $4.4 billion, the Vocational and Defense segments are expected to grow, with Vocational sales of roughly $3.8 billion and adjusted operating margin around 15%, and Defense sales near $2.3 billion with a 4% margin. The company aims to achieve full production rates of the Next Generation Delivery Vehicle (NGDV) by the end of 2025, supporting strong revenue growth into 2026.Oshkosh Corporate Events
Executive/Board Changes
Oshkosh Names Matthew Field as New CFO
Neutral
Dec 2, 2024
Oshkosh Corporation announced the appointment of Matthew Field as its new Chief Financial Officer, effective December 16, 2024. Field, who previously held senior financial roles at Joby Aviation and Ford Motor Company, brings extensive experience in the automotive and aviation sectors. He will receive a competitive compensation package, including a base salary, incentives, and equity awards, along with a sign-on bonus and restricted stock units, as he transitions from his previous role.
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.