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Shyft Group, Inc. (SHYF)
NASDAQ:SHYF
Top Page
Shyft Group
(NASDAQ:SHYF)
57Neutral
Positive Factors
Customer Enthusiasm
Considerable customer enthusiasm was noted as soon as the deal was announced.
Financial Outlook
Financial and synergy details suggest considerable conservatism in the published projections, and a better long-term outlook than initially thought.
Negative Factors
EBITDA Margins
The resulting combined company will still only have approximately 10.5% EBITDA margins, below many peers.
Execution Risks
Execution risks are viewed as elevated due to the multi-continent nature of the merger and the absence of a CFO.
Shyft Group (SHYF) vs. S&P 500 (SPY)
Market Cap
$281.20M
Dividend Yield2.51%
Average Volume (3M)303.38K
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth-9.86%
EPS Growth-144.13%
CountryUS
Employees2,555
SectorIndustrials
Sector Strength70
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)-0.08
Shares Outstanding34,932,274
10 Day Avg. Volume396,157
30 Day Avg. Volume303,382
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.40
Price to Cash Flow (P/CF)6.10
P/FCF Ratio7.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.50Price Target Upside94.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Shyft Group Business Overview & Revenue Model
Company DescriptionShyft Group (SHYF) is a leading North American manufacturer specializing in the production of commercial vehicles and specialty vehicle chassis. The company operates across several sectors including last mile delivery, service and utility vehicles, and recreational vehicles. Shyft Group is renowned for its innovation in vehicle design and manufacturing, offering a diverse range of products and services to meet the needs of various industries.
How the Company Makes MoneyShyft Group makes money primarily through the sale of its commercial vehicles and chassis to businesses and organizations across diverse sectors. The company's revenue model is centered around manufacturing and selling vehicles designed for last mile delivery, service, and utility applications. Key revenue streams include direct sales to delivery fleet operators, government entities, and utility companies. Additionally, Shyft Group benefits from strategic partnerships with major logistics and delivery companies, enhancing its market reach and sales potential. The company’s focus on innovation and customization allows it to command a premium in the market, contributing significantly to its earnings.
Shyft Group Financial Statement Overview
Summary
The Shyft Group is experiencing revenue and profitability challenges, with a 15% revenue decline and a net loss in 2023. Despite a low debt-to-equity ratio indicating manageable leverage, equity has decreased, impacting return on equity. Cash flow remains positive, which is a positive indicator amidst these challenges.Income Statement
The Shyft Group has experienced a decline in revenue and profitability in recent years. From 2022 to 2023, total revenue decreased by approximately 15%, and the company reported a net loss in 2023 after posting positive net income in previous years. The gross profit margin decreased slightly, and both EBIT and EBITDA margins have weakened, indicating challenges in maintaining operational efficiency.55
Neutral
Balance Sheet
The balance sheet reveals a moderate level of financial stability. The debt-to-equity ratio is relatively low, indicating manageable leverage. However, the company's equity has decreased slightly, and total assets have increased marginally. Return on equity has been negatively impacted by recent net losses. Overall, the balance sheet reflects moderate stability with some concerns over declining equity and profitability.60
Neutral
Cash Flow
Cash flow generation remains relatively stable. Operating cash flow has decreased compared to the previous year, yet free cash flow remains positive, albeit lower. The free cash flow to net income ratio is not calculable due to net losses. Despite the challenges in revenue and profitability, the company maintains positive free cash flow, which is a positive indicator of its ability to generate cash.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 786.18M | 872.20M | 1.03B | 991.79M | 675.97M | Gross Profit |
| 157.19M | 150.36M | 180.43M | 199.26M | 146.28M | EBIT |
| 4.11M | 6.75M | 47.51M | 84.05M | 35.26M | EBITDA |
| 26.56M | 24.18M | 61.53M | 96.28M | 63.35M | Net Income Common Stockholders |
| -2.79M | 6.50M | 36.56M | 68.92M | 32.82M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 15.78M | 9.96M | 11.55M | 37.16M | 21.00M | Total Assets |
| 568.75M | 530.05M | 580.48M | 447.87M | 359.05M | Total Debt |
| 80.10M | 132.37M | 131.14M | 55.18M | 74.31M | Net Debt |
| 64.32M | 122.41M | 119.59M | 18.02M | 53.32M | Total Liabilities |
| 320.43M | 277.88M | 311.79M | 181.01M | 158.89M | Stockholders Equity |
| 248.32M | 252.17M | 268.59M | 266.75M | 200.33M |
| Cash Flow | Free Cash Flow | |||
| 16.39M | 35.51M | -39.41M | 51.01M | 49.80M | Operating Cash Flow |
| 30.06M | 56.24M | -18.84M | 74.01M | 64.33M | Investing Cash Flow |
| -61.20M | -21.11M | -20.42M | -22.08M | 14.92M | Financing Cash Flow |
| 36.96M | -36.72M | 13.65M | -35.77M | -77.60M |
Shyft Group Technical Analysis
Negative
7.97
Price Trends
9.87
Negative
11.13
Negative
11.92
Negative
Market Momentum
-0.56
Positive
28.99
Positive
8.23
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHYF, the sentiment is Negative. The current price of 7.97 is below the 20-day moving average (MA) of 8.64, below the 50-day MA of 9.87, and below the 200-day MA of 11.92, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 28.99 is Positive, neither overbought nor oversold. The STOCH value of 8.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SHYF.
Shyft Group Risk Analysis
Shyft Group disclosed 41 risk factors in its most recent earnings report. Shyft Group 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
Shyft Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $271.84M | 4.91 | 8.98% | ― | -2.24% | 42.13% | |
62 Neutral | $7.62B | 13.01 | 3.19% | 3.32% | 3.77% | -14.28% | |
61 Neutral | $362.81M | 39.92 | 1.07% | 2.16% | -2.02% | -80.76% | |
57 Neutral | $281.20M | ― | -1.12% | 2.51% | -9.86% | -144.13% | |
53 Neutral | $450.60M | ― | -1.15% | ― | 1.32% | -104.92% | |
51 Neutral | $415.26M | ― | -76.95% | 3.26% | -23.25% | -232.48% |
* Industrials Sector Average
Performance Comparison
SHYF
Shyft Group
7.97
-3.15
-28.33%
CMCO
Columbus Mckinnon
12.96
-27.73
-68.15%
MTW
Manitowoc Company
7.67
-5.79
-43.02%
TWI
Titan International
7.13
-4.61
-39.27%
WNC
Wabash National
9.82
-16.16
-62.20%
Shyft Group Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -36.04% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed view with significant operational improvements and strategic achievements like the Blue Arc production, but also highlighted challenges such as sales declines in certain segments and a net loss impacted by merger costs. The need for additional orders for Blue Arc and market weakness in key areas also contribute to the balanced outlook.Highlights
Adjusted EBITDA Growth
The company achieved meaningful adjusted EBITDA growth with margins of 6.2%, up 160 basis points year-over-year.
Operational Improvements
Fleet Vehicles and Services business expanded margins to 7.2%, up 160 basis points year-over-year due to operational performance.
Blue Arc Production Achievement
Brought Blue Arc to production and successfully shifted EV trucks to FedEx, marking a significant milestone.
Workplace Safety Improvements
Reduced workplace injuries by 40% in 2024 through the Mission Zero initiative.
Specialty Vehicles Segment Performance
Specialty Vehicles segment showed strong EBITDA margins driven by demand for infrastructure truck bodies.
Lowlights
Sales Decline in Fleet Vehicles & Services
Sales for the Fleet Vehicles & Services segment were down 7% compared to the previous year, reflecting softness in walk-in vans.
Net Loss Due to Merger Costs
GAAP net loss of $3.4 million was negatively impacted by $8.5 million of transaction costs related to the pending merger.
Backlog Decrease
FVS backlog was $244.8 million at year-end, down 24.7% versus 2023, and Specialty Vehicles backlog was down 18.8%.
Need for Additional Orders
To meet the $50 million sales outlook for Blue Arc, additional orders are needed, as the current orders are insufficient.
Continued Market Weakness
Weakness persists in the motorhome market and parcel demand, impacting short-term outlook.
Company Guidance
During The Shyft Group's fourth quarter and full-year 2024 conference call, the company highlighted several key metrics and forward-looking guidance. The Shyft Group reported a year-over-year adjusted EBITDA margin improvement to 6.2%, up 160 basis points. The Fleet Vehicles & Services segment achieved a 7.2% margin, also up 160 basis points year-over-year. Despite a net loss of $3.4 million for the quarter, adjusted EBITDA for Q4 was $15.9 million, or 7.9% of sales, a significant increase from $2.3 million or 1.1% in 2023. The company's 2025 outlook includes expected sales between $870 million and $970 million, with adjusted EBITDA projected to range from $62 million to $72 million. Shyft anticipates a slow start to the year with low single-digit adjusted EBITDA in Q1, but expects approximately 70% of adjusted EBITDA to be realized in the second half of the year. The company plans to achieve adjusted EPS between $0.69 and $0.92 per share and generate free cash flow of $25 million to $30 million, despite $20 million in transaction-related cash expenses. These projections are set against a backdrop of ongoing improvements in operational efficiency and the strategic merger with Aebi Schmidt, which is expected to close by mid-2025.Shyft Group Corporate Events
Delistings and Listing ChangesM&A TransactionsRegulatory Filings and Compliance
Shyft Group Announces Merger with Aebi Schmidt
Positive
Apr 4, 2025
On April 4, 2025, The Shyft Group announced that Aebi Schmidt Group filed a registration statement on Form S-4 with the SEC for their proposed merger. The merger, expected to close in mid-2025, aims to create a combined company named Aebi Schmidt Group, which will be listed on Nasdaq under the symbol ‘AEBI’. This move is anticipated to enhance operational capabilities, drive growth, and create long-term shareholder value, with projected combined revenues of $1.9 billion and adjusted EBITDA of $148 million for 2024.
M&A TransactionsBusiness Operations and Strategy
Shyft Group Announces Merger with Aebi Schmidt
Positive
Jan 13, 2025
The Shyft Group has released an investor presentation regarding its proposed merger with Aebi Schmidt Group to create a leading specialty vehicles company. The merger aims to deliver significant value for shareholders through enhanced revenue, improved operations, and strategic growth, with Shyft shareholders owning 48% of the combined entity. The transaction, expected to close by mid-2025, will be tax-free for Shyft shareholders and has received unanimous board approval. The merger is projected to result in a pro forma revenue of $2.7 billion and an adjusted EBITDA of $315 million by 2028, with expectations of reaching $3 billion in revenue in the longer term.
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.