One-glance verdict
Overvalued
$-5.29 our estimate vs market $23.03
Wall Street consensus: $14.00 (-364.4% lower than our fair-value estimate)
535% below our estimate, beyond the bull case
Fundamentals snapshot
The Manitowoc Company, Inc.
MTW · NYQ · Industrials · Farm & Heavy Construction Machinery
Current price
$23.03
52-week range
$9.70 - $23.17
Market cap
$830.51M
Balance sheet
Stretched
1.56x Concerning
Net debt $442.20M. 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 3.5% last year.
- Reward Free cash flow was positive in 3/10 years.
- Risk Stock trades 52.1% above its 5-year average P/E.
- Risk Net debt grew 23.0% over 3 years.
What this company does
The Manitowoc Company, Inc.
Manitowoc builds and sells the massive cranes used for major construction projects like skyscrapers, bridges, and energy plants. The company makes money not only from the initial sale of these machines but also by providing parts and maintenance services for them over time, which matters because this creates a more reliable income stream than just relying on large, one-time sales. Because its products are essential for big infrastructure projects, the company's success is closely linked to the overall health of the global construction industry.
How the company got here
Founded in 1902 as a shipbuilding company, Manitowoc entered the crane business in the 1920s. Over the years, it grew by acquiring other crane companies, like Potain for tower cranes and Grove for mobile cranes, to become a major player in the lifting industry. A key turning point was in 2016 when it sold off its foodservice equipment business to focus entirely on cranes and lifting solutions. This move made it the specialized crane company it is today.
What it actually does
Manitowoc builds and sells very large cranes used for major construction and industrial projects. Think of the towering cranes you see building skyscrapers, bridges, airports, or wind farms; there's a good chance Manitowoc made them. They don't just sell new machines; a big part of their business is providing parts, service, and support for the cranes already in use around the world. Their customers are typically other businesses like construction contractors, crane rental companies, and government bodies.
New Crane Sales
This is the company's traditional core business, involving the design, manufacturing, and sale of new lifting equipment. They produce several types of cranes under well-known brand names like Grove, Potain, and the flagship Manitowoc brand. This includes everything from mobile cranes that can drive on roads to massive crawler cranes that move on tracks and stationary tower cranes used for building tall structures. Sales of new equipment are cyclical (meaning they go up and down with the health of the overall construction and energy industries).
Aftermarket Services (Non-New Machine Sales)
This part of the business focuses on supporting cranes after they are sold and is a growing priority for the company. It includes selling spare parts, providing maintenance and repair services, training operators, and even remanufacturing (rebuilding) old cranes. This segment provides a more stable and often more profitable source of revenue (money the company earns) because cranes need service and parts throughout their long lives, regardless of whether new cranes are being sold. This business is a key part of their strategy to be less dependent on the cycles of the construction market.
What management is betting on now
Management is heavily focused on a strategy called 'CRANES+50,' which aims to significantly grow its aftermarket (parts and services) business. The goal is to make the company more resilient by relying less on the fluctuating sales of new machines and more on the steady income from servicing the vast number of Manitowoc cranes already operating worldwide. They are also investing in new technologies, like telematics (systems that monitor crane performance remotely), and expanding their service network to be closer to customers. This strategy is about transforming from just a manufacturer into a full-service lifting solutions provider for the entire lifecycle of a crane.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-52.90M
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
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
Revenue
$524.80M
Net income
$-7.00M
Diluted EPS
-0.20
Operating cash flow
$-43.60M
Free cash flow
$-52.90M
Fetching…
Sources
Is it cheap or expensive?
Fair value $-5.29 vs current price $23.03
Wall Street consensus is the average analyst price target: $14.00 (-364.4% lower than our fair-value estimate).
Our most-likely fair value is $-5.29 a share — about 123.0% below today's price of $23.03, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $442.2M. Interest coverage 1.6x.
Net debt
$442.20M
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 $538.00M Interest coverage 1.56x This is the baseline the peer rows are being compared against.
Total debt $2.69B Interest coverage 2.68x +72% vs MTW Carries about 1.7x more debt cushion than MTW.
Total debt $1.33B 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 3.5% last year.
-
Free cash flow was positive in 3/10 years.
Risks
-
Stock trades 52.1% above its 5-year average P/E.
-
Net debt grew 23.0% over 3 years.
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)
41.12x
Forward P/E
25.14x
P/B
1.18x
P/S
0.36x
EV/EBITDA
9.00x
PEG ratio
2.88x
Profitability
How much profit each dollar creates
Gross margin
18.7%
Operating margin
5.7%
Net margin
0.9%
ROE
2.9%
ROA
2.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.77x
Current ratio
2.11x
Quick ratio
0.70x
Total debt
$538.00M
Total cash
$95.80M
Growth
How the business has been compounding
Revenue TTM
$2.32B
Revenue 5Y CAGR
6.8%
EPS TTM
0.56
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$112.40M
Free CF TTM
$-15.30M
FCF margin
-0.7%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2015-11-24