One-glance verdict
Overvalued
$-5.92 our estimate vs market $18.81
Wall Street consensus: $10.50 (-277.5% lower than our fair-value estimate)
418% below our estimate, beyond the bull case
Fundamentals snapshot
The Manitowoc Company, Inc.
MTW · NYQ · Industrials · Farm & Heavy Construction Machinery
Current price
$18.81
52-week range
$9.09 - $19.80
Market cap
$675.46M
Balance sheet
Stretched
1.56x Concerning
Net debt $444.80M. 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 24.2% above its 5-year average P/E.
- Risk Net debt grew 23.0% over 3 years.
What this company does
The Manitowoc Company, Inc.
The Manitowoc Company builds and sells the very large cranes used in major construction projects like building bridges, skyscrapers, and energy facilities. The company makes money not only when it sells a new crane but also from its aftermarket services (providing spare parts, repairs, and maintenance), which is important because this essential equipment always needs upkeep. This business model matters because demand for construction and infrastructure repair can signal how the broader economy is doing.
How the company got here
Founded in 1902 as a shipbuilding company in Wisconsin, Manitowoc entered the crane manufacturing business in the 1920s. Over the years, it grew by acquiring other crane companies, including notable brands like Potain and Grove in the early 2000s. A major turning point came in 2016 when the company spun off its foodservice equipment division to focus entirely on cranes and lifting solutions. This move solidified its identity as a specialized, pure-play crane manufacturer.
What it actually does
Manitowoc designs and builds very large cranes used for major construction and industrial projects. Think of the towering cranes you see building skyscrapers, the mobile ones on trucks at road construction sites, or the heavy-duty crawlers used to assemble wind turbines. Beyond selling new machines, the company also provides a significant amount of support services, including parts, maintenance, and repairs for the equipment it sells. Its customers are typically other businesses, like construction contractors, rental companies, and government entities.
New Machine Sales
This is the company's largest business area, focused on designing, manufacturing, and selling new cranes. It includes a variety of crane types sold under well-known brand names like Grove (mobile cranes), Potain (tower cranes), and the flagship Manitowoc brand (heavy-duty crawler cranes). Customers like construction firms and rental companies buy these machines for large-scale projects such as building infrastructure (like bridges and airports), energy projects, and commercial buildings. This segment represents the majority of the company's revenue.
Aftermarket Services
This part of the business provides parts, service, and support for cranes after the initial sale. It's like the service and parts department at a car dealership, but for massive lifting equipment. This includes selling spare parts, performing field repairs, offering technical support, and even remanufacturing (rebuilding) older cranes to factory standards. This is a crucial business because it provides a more stable and often more profitable source of revenue (money a company receives from its business activities) compared to the cyclical nature of new equipment sales.
What management is betting on now
Management's current strategy, called "CRANES+50," is heavily focused on growing its aftermarket business—the parts, services, and support it provides after a crane is sold. The goal is to make the company less dependent on the ups and downs of new crane sales, which can be very cyclical (business activity that rises and falls in patterns). They are also investing in new technologies, like digital tools that allow customers to monitor their cranes remotely, and expanding their direct-to-customer service and rental operations. This strategy aims to build stronger, long-term relationships with customers and create more predictable revenue streams.
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 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 $-5.92 vs current price $18.81
Wall Street consensus is the average analyst price target: $10.50 (-277.5% lower than our fair-value estimate).
Our most-likely fair value is $-5.92 a share — about 131.5% below today's price of $18.81, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $444.8M. Interest coverage 1.6x.
Net debt
$444.80M
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 $540.60M 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 $1.34B 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 24.2% 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)
33.59x
Forward P/E
20.74x
P/B
0.97x
P/S
0.29x
EV/EBITDA
8.02x
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
0.68x
Total debt
$540.60M
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