Manitowoc Company (MTW) AI Stock Analysis

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Manitowoc Company

(NYSE:MTW)

65Neutral

Manitowoc Company's overall stock score reflects moderate financial health with improved profitability metrics but declining revenue and cash flow challenges. The mixed earnings call sentiment highlights successes in non-new machine sales and safety but also underscores market challenges and reduced backlog. Attractive valuation metrics suggest potential upside, though technical indicators point to cautious near-term sentiment.

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

$262.98M

Dividend YieldN/A

Average Volume (3M)243.43K

Price to Earnings (P/E)4.6

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. Volume265,201

30 Day Avg. Volume243,432

Financial Highlights & Ratios

PEG Ratio0.11

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

$10.33

Price Target Upside28.00% Upside

Rating ConsensusModerate Sell

Number of Analyst Covering3

Manitowoc Company Business Overview & Revenue Model

Company DescriptionThe Manitowoc Company, Inc. (MTW) is a leading global manufacturer of cranes and lifting solutions. Established in 1902 and headquartered in Milwaukee, Wisconsin, the company operates primarily in the heavy equipment industry, focusing on the design, manufacture, and support of a comprehensive range of cranes, including mobile telescopic cranes, tower cranes, and lattice-boom crawler cranes. Manitowoc serves a diverse clientele across various sectors such as construction, energy, infrastructure, and industrial markets, providing innovative and reliable lifting solutions.

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

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Neutral

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Negative

Last Price8.07

Price Trends

50DMA

9.69

Negative

100DMA

9.68

Negative

200DMA

9.97

Negative

Market Momentum

MACD

-0.29

Positive

RSI

35.15

Neutral

STOCH

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 8.07 is below the 20-day moving average (MA) of 8.93, below the 50-day MA of 9.69, and below the 200-day MA of 9.97, 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
TEX	78 Outperform	$2.43B	7.41	19.13%	2.11%	-0.47%	-34.74%
DE	74 Outperform	$114.90B	18.76	27.91%	1.50%	-20.93%	-34.33%
CMI	73 Outperform	$40.85B	10.45	41.27%	2.67%	0.14%	444.36%
PCAR	70 Outperform	$46.27B	11.15	24.93%	1.42%	-4.29%	-9.76%
OSK	68 Neutral	$5.76B	8.60	17.34%	2.39%	11.36%	13.78%
MTW	65 Neutral	$262.98M	4.63	8.98%	―	-2.24%	42.13%
Sector *	62 Neutral	$7.67B	13.25	3.04%	3.47%	3.63%	-13.99%

* Industrials Sector Average

Performance Comparison

MTW

Manitowoc Company

8.07

-5.51

-40.57%

CMI

Cummins

296.55

0.14

0.05%

Deere

452.59

45.79

11.26%

OSK

Oshkosh

89.05

-32.49

-26.73%

PCAR

Paccar

93.93

-20.29

-17.76%

TEX

Terex

36.73

-26.73

-42.12%

Manitowoc Company Earnings Call Summary

Earnings Call Date: Feb 12, 2025 | % Change Since: -17.40% | 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.