NasdaqGS:CMCO

Stock Analysis Report

Executive Summary

Columbus McKinnon Corporation designs, manufactures, and markets hoists, actuators, rigging tools, digital power control systems, motion control products, and other technologies and systems for commercial and industrial applications worldwide.

Rewards

Trading at 48.1% below its fair value

Earnings are forecast to grow 19.37% per year

Earnings grew by 151.6% over the past year

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months



Snowflake Analysis

Very undervalued with solid track record.


Similar Companies

Share Price & News

How has Columbus McKinnon's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CMCO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.3%

CMCO

0.09%

US Machinery

0.3%

US Market


1 Year Return

33.4%

CMCO

21.3%

US Machinery

18.5%

US Market

Return vs Industry: CMCO exceeded the US Machinery industry which returned 21.3% over the past year.

Return vs Market: CMCO exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

CMCOIndustryMarket
7 Day2.3%0.09%0.3%
30 Day6.7%-1.0%1.5%
90 Day12.0%9.6%5.7%
1 Year34.3%33.4%23.6%21.3%21.1%18.5%
3 Year58.6%56.0%39.8%30.9%45.9%36.4%
5 Year69.8%64.2%69.9%49.8%71.4%52.5%

Price Volatility Vs. Market

How volatile is Columbus McKinnon's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Columbus McKinnon undervalued compared to its fair value and its price relative to the market?

48.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CMCO ($42.03) is trading below our estimate of fair value ($80.98)

Significantly Below Fair Value: CMCO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CMCO is good value based on its PE Ratio (18.2x) compared to the Machinery industry average (22.1x).

PE vs Market: CMCO is good value based on its PE Ratio (18.2x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: CMCO is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: CMCO is good value based on its PB Ratio (2.1x) compared to the US Machinery industry average (2.5x).


Next Steps

Future Growth

How is Columbus McKinnon forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

19.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMCO's forecast earnings growth (19.4% per year) is above the savings rate (1.7%).

Earnings vs Market: CMCO's earnings (19.4% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: CMCO's earnings are forecast to grow, but not significantly.

Revenue vs Market: CMCO's revenue (0.6% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: CMCO's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CMCO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Columbus McKinnon performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMCO has high quality earnings.

Growing Profit Margin: CMCO's current net profit margins (6.3%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: CMCO's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: CMCO's earnings growth over the past year (151.6%) exceeds its 5-year average (10.8% per year).

Earnings vs Industry: CMCO earnings growth over the past year (151.6%) exceeded the Machinery industry 13.5%.


Return on Equity

High ROE: CMCO's Return on Equity (11.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Columbus McKinnon's financial position?


Financial Position Analysis

Short Term Liabilities: CMCO's short term assets ($361.1M) exceed its short term liabilities ($209.1M).

Long Term Liabilities: CMCO's short term assets ($361.1M) do not cover its long term liabilities ($398.5M).


Debt to Equity History and Analysis

Debt Level: CMCO's debt to equity ratio (60.6%) is considered high.

Reducing Debt: CMCO's debt to equity ratio has increased from 49.2% to 60.6% over the past 5 years.

Debt Coverage: CMCO's debt is well covered by operating cash flow (31.9%).

Interest Coverage: CMCO's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet

Inventory Level: CMCO has a high level of physical assets or inventory.

Debt Coverage by Assets: CMCO's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

What is Columbus McKinnon's current dividend yield, its reliability and sustainability?

0.57%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: CMCO's dividend (0.57%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: CMCO's dividend (0.57%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: CMCO is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: CMCO is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CMCO is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CMCO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Columbus McKinnon's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Mark Morelli (55yo)

2.8yrs

Tenure

US$3,599,678

Compensation

Mr. Mark D. Morelli has been the Chief Executive Officer and President of Columbus McKinnon Corporation since February 28, 2017. Mr. Morelli served as an Executive in Residence at Battery Ventures. Mr. Mor ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD3.60M) is above average for companies of similar size in the US market ($USD2.63M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.9yrs

Average Tenure

58yo

Average Age

Experienced Management: CMCO's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

63yo

Average Age

Experienced Board: CMCO's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: CMCO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$277,04422 Nov 19
Kurt Wozniak
EntityIndividual
Role
Other Key Executive
Vice President of Industrial Products
Shares6,989
Max PriceUS$39.64
SellUS$801,27813 Jun 19
Peter McCormick
EntityIndividual
Role
Other Key Executive
Vice President of Crane Solutions
Shares20,609
Max PriceUS$38.88
SellUS$375,41311 Jun 19
Peter McCormick
EntityIndividual
Role
Other Key Executive
Vice President of Crane Solutions
Shares9,700
Max PriceUS$38.75
SellUS$219,39331 May 19
Peter McCormick
EntityIndividual
Role
Other Key Executive
Vice President of Crane Solutions
Shares5,990
Max PriceUS$36.76

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Peter McCormick (59yo)

    Vice President of Crane Solutions

    • Tenure: 2.9yrs
    • Compensation: US$1.08m
  • Mark Morelli (55yo)

    President

    • Tenure: 2.8yrs
    • Compensation: US$3.60m
  • Alan Korman (58yo)

    VP of Corporate Development

    • Tenure: 8.9yrs
    • Compensation: US$1.02m
  • Greg Rustowicz (59yo)

    VP of Finance

    • Tenure: 8.3yrs
    • Compensation: US$1.38m
  • Kurt Wozniak (55yo)

    Vice President of Industrial Products

    • Tenure: 9.4yrs
    • Compensation: US$1.04m
  • Bert Brant (58yo)

    Vice President of Global Manufacturing Operations

    • Tenure: 1.8yrs
  • Mark Paradowski (49yo)

    Vice President of Information Services

    • Tenure: 6.4yrs
  • Mario Ramos

    Vice President of Global Product Development

    • Tenure: 1.5yrs
  • Appal Chintapalli

    Vice President of Engineered Products

    • Tenure: 0.8yrs

Board Members

  • R. Trumbull (70yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$196.53k
  • Rick Fleming (72yo)

    Independent Chairman of the Board

    • Tenure: 1.4yrs
    • Compensation: US$236.53k
  • Ernie Verebelyi (71yo)

    Chairman Emeritus

    • Tenure: 1.4yrs
    • Compensation: US$176.53k
  • Nicholas Pinchuk (72yo)

    Independent Director

    • Tenure: 12.9yrs
    • Compensation: US$176.53k
  • Kathy Roedel (58yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$176.53k
  • Aziz Aghili (60yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$176.53k
  • Heath Mitts (48yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$196.53k
  • Mark Morelli (55yo)

    President

    • Tenure: 2.8yrs
    • Compensation: US$3.60m
  • Liam McCarthy (63yo)

    Independent Director

    • Tenure: 11.1yrs
    • Compensation: US$191.53k

Company Information

Columbus McKinnon Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Columbus McKinnon Corporation
  • Ticker: CMCO
  • Exchange: NasdaqGS
  • Founded: 1875
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$943.896m
  • Shares outstanding: 23.67m
  • Website: https://www.cmworks.com

Number of Employees


Location

  • Columbus McKinnon Corporation
  • 205 Crosspoint Parkway
  • Getzville
  • New York
  • 14068
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMCONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1996
VC3DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1996

Biography

Columbus McKinnon Corporation designs, manufactures, and markets hoists, actuators, rigging tools, digital power control systems, motion control products, and other technologies and systems for commercial  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 23:33
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.