One-glance verdict
Overvalued
$-7.11 our estimate vs market $22.03
Wall Street consensus: $14.00 (-297.0% lower than our fair-value estimate)
410% below our estimate, beyond the bull case
Fundamentals snapshot
The Manitowoc Company, Inc.
MTW · NYQ · Industrials · Farm & Heavy Construction Machinery
Current price
$22.03
52-week range
$10.29 - $25.22
Market cap
$795.44M
Balance sheet
Stretched
1.56x Concerning
Net debt $482.70M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 6.2% last year.
- Reward Free cash flow was positive in 3/10 years.
- Risk Net debt grew 23.0% over 3 years.
- Risk Stock trades 14.8% above its 5-year average P/E.
What this company does
The Manitowoc Company, Inc.
The Manitowoc Company designs and makes large cranes used in building things like bridges and power plants, with most of its money coming from selling these cranes and providing repair and maintenance services afterward. This matters because their ability to sell these specialized machines and services directly impacts their profit margins (the percentage of each sales dollar left after paying for the cranes' materials and manufacturing).
How the company got here
The Manitowoc Company was founded in 1902 in Manitowoc, Wisconsin, by Charles West and Elias Gunnell, initially as a shipbuilding and ship-repair company. Over the years, the company grew and diversified, entering the crane manufacturing business in the mid-1920s. A significant turning point was its acquisition of the Grove Crane company in 2002, which expanded its product offerings. In 2016, Manitowoc made a strategic decision to spin off its food service equipment operations, becoming a standalone crane company focused on engineered lifting solutions. This move allowed the company to concentrate its resources and expertise solely on the crane industry.
What it actually does
Manitowoc designs, manufactures, and distributes a wide range of engineered lifting solutions, primarily focusing on cranes. These machines are essential tools used in various industries, including construction, energy production, infrastructure development, and industrial applications. The company's products help lift and move heavy materials, making them critical for building everything from skyscrapers and bridges to power plants and factories.
Manitowoc Cranes
This is the core of Manitowoc's business, encompassing the design, manufacturing, and sale of various types of cranes. These include large lattice-boom crawler cranes, used for heavy-duty construction and infrastructure projects; tower cranes, essential for high-rise buildings; and mobile hydraulic cranes, which are versatile and used across many applications. The company also produces boom trucks, which are crane-equipped vehicles. Manitowoc's crane products are sold globally under well-known brands like Grove, Potain, and National Crane.
Aftermarket Services and Support
Beyond selling new cranes, Manitowoc offers a comprehensive suite of aftermarket services. This includes providing spare parts, technical support, field service, routine maintenance, and training for crane operators and technicians. The company also engages in crane and component remanufacturing, giving older equipment a new life. These services are crucial for ensuring that customers' equipment remains operational, safe, and efficient throughout its lifespan, and they represent a significant and growing part of Manitowoc's business.
What management is betting on now
Manitowoc's current strategy, known as CRANES+50, focuses on transforming the company from a product-centric to a customer-centric business. A key part of this strategy is to significantly grow its non-new machine sales, which include aftermarket services, parts, and rentals. These offerings are generally less capital-intensive, more profitable, and less affected by the cyclical nature of the crane industry compared to new equipment sales. By expanding its service footprint, offering more value-added solutions, and leveraging digital technologies, Manitowoc aims to achieve more consistent and sustainable financial returns for its shareholders.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$101.10M
FY2025 Q1
$2.10M
FY2025 Q2
$-73.70M
FY2025 Q3
$-22.00M
FY2025 Q4
$78.30M
FY2026 Q1
$19.20M
FY2026 Q2
$-6.10M
FY2026 Q3
$-42.10M
Revenue
$613.80M
Net income
$11.00M
Diluted EPS
0.30
Operating cash flow
$-33.20M
Free cash flow
$-42.10M
Fetching…
Sources
Revenue
$594.90M
Net income
$14.20M
Diluted EPS
0.39
Operating cash flow
$8.00M
Free cash flow
$-6.10M
Fetching…
Sources
Revenue
$494.60M
Net income
$-6.00M
Diluted EPS
-0.17
Operating cash flow
$27.40M
Free cash flow
$19.20M
Fetching…
Sources
Revenue
$677.10M
Net income
$7.00M
Diluted EPS
0.20
Operating cash flow
$91.10M
Free cash flow
$78.30M
Fetching…
Sources
Revenue
$553.40M
Net income
$5.00M
Diluted EPS
0.14
Operating cash flow
$-14.10M
Free cash flow
$-22.00M
Fetching…
Sources
Revenue
$539.50M
Net income
$1.50M
Diluted EPS
0.04
Operating cash flow
$-67.70M
Free cash flow
$-73.70M
Fetching…
Sources
Revenue
$470.90M
Net income
$-6.30M
Diluted EPS
-0.18
Operating cash flow
$12.90M
Free cash flow
$2.10M
Fetching…
Sources
Revenue
$596.00M
Net income
$56.70M
Diluted EPS
1.60
Operating cash flow
$112.40M
Free cash flow
$101.10M
Fetching…
Sources
Is it cheap or expensive?
Fair value $-7.11 vs current price $22.03
Wall Street consensus is the average analyst price target: $14.00 (-297.0% lower than our fair-value estimate).
Our most-likely fair value is $-7.11 a share — about 132.3% below today's price of $22.03, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $482.7M. Interest coverage 1.6x.
Net debt
$482.70M
Interest coverage
1.56x
The Manitowoc Company, Inc.'s profit covers its interest bill about 1.6 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
MTW
BASELINE
The Manitowoc Company, Inc.
Total debt $547.40M Interest coverage 1.56x This is the baseline the peer rows are being compared against.
Total debt $2.58B Interest coverage 2.68x +72% vs MTW Carries about 1.7x more debt cushion than MTW.
Total debt $1.15B Interest coverage 22.75x +1,361% vs MTW Carries about 14.6x more debt cushion than MTW.
Total debt $1.10B Interest coverage 8.04x +416% vs MTW Carries about 5.2x more debt cushion than MTW.
What you should know
The case for and against MTW
2 Rewards
2 Risks
Rewards
-
Revenue grew 6.2% last year.
-
Free cash flow was positive in 3/10 years.
Risks
-
Net debt grew 23.0% over 3 years.
-
Stock trades 14.8% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
31.03x
Forward P/E
26.48x
P/B
1.12x
P/S
0.33x
EV/EBITDA
8.25x
PEG ratio
2.88x
Profitability
How much profit each dollar creates
Gross margin
19.1%
Operating margin
5.3%
Net margin
1.1%
ROE
3.8%
ROA
3.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.77x
Current ratio
2.11x
Quick ratio
0.64x
Total debt
$547.40M
Total cash
$64.70M
Growth
How the business has been compounding
Revenue TTM
$2.38B
Revenue 5Y CAGR
6.8%
EPS TTM
0.71
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$93.30M
Free CF TTM
$-15.30M
FCF margin
-0.6%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2015-11-24