Columbus McKinnon (NasdaqGS:CMCO) - Share price, News & Analysis

CMCO fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	4/6
Financial Health	3/6
Dividends	2/6

CMCO Stock Overview

Columbus McKinnon Corporation designs, manufactures, and markets intelligent motion solutions to ergonomically move, lift, position, and secure materials worldwide.

Rewards

Trading at 70.3% below our estimate of its fair value

Earnings are forecast to grow 35.08% per year

Earnings grew by 225.7% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

Significant insider selling over the past 3 months

Columbus McKinnon Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Columbus McKinnon
Historical stock prices
Current Share Price	US$30.69
52 Week High	US$54.20
52 Week Low	US$27.18
Beta	1.17
1 Month Change	0.79%
3 Month Change	-34.01%
1 Year Change	-36.01%
3 Year Change	-26.88%
5 Year Change	20.73%
Change since IPO	97.20%

Shareholder Returns

	CMCO	US Machinery	US Market
7D	6.5%	1.5%	6.6%
1Y	-36.0%	-20.1%	-18.4%

Return vs Industry: CMCO underperformed the US Machinery industry which returned -20.6% over the past year.

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

Price Volatility

Is CMCO's price volatile compared to industry and market?
CMCO volatility
CMCO Average Weekly Movement	6.9%
Machinery Industry Average Movement	6.1%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.2%

Stable Share Price: CMCO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CMCO's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1875	3,224	David Wilson	https://www.columbusmckinnon.com

Columbus McKinnon Corporation designs, manufactures, and markets intelligent motion solutions to ergonomically move, lift, position, and secure materials worldwide. The company offers electric, air-powered, lever, and hand hoists; hoist trolleys, explosion-protected and custom engineered hoists, and winches; crane systems, such as crane components and kits, enclosed track rail systems, mobile and jib cranes, and fall protection systems, as well as material handling solutions; rigging equipment comprising below-the-hook lifting devices, shackles, chains and chains accessories, forestry and hand tools, lifting slings, lashing systems, and tie-downs and load binders; rotary unions and swivel joints; and mechanical and electromechanical actuators. It also provides power and motion technology products, including AC motor controls and line regenerative systems, automation and diagnostics, brakes, cable and festoon systems, collision avoidance systems, conductor bar systems, DC motor and magnet control systems, elevator drives, inverter duty motors, mining drives, pendant pushbutton stations, radio controls, and wind inverters; power delivery subsystems; overhead aluminum light rail workstations; and low profile, flexible chain, large scale, sanitary, and vertical elevation conveyor systems, as well as pallet system conveyors and accumulation systems.

Columbus McKinnon Fundamentals Summary

How do Columbus McKinnon's earnings and revenue compare to its market cap?
CMCO fundamental statistics
Market Cap	US$876.22m
Earnings (TTM)	US$29.66m
Revenue (TTM)	US$906.56m

29.5x

P/E Ratio

1.0x

P/S Ratio

Is CMCO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CMCO income statement (TTM)
Revenue	US$906.56m
Cost of Revenue	US$587.32m
Gross Profit	US$319.23m
Other Expenses	US$289.57m
Earnings	US$29.66m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.04
Gross Margin	35.21%
Net Profit Margin	3.27%
Debt/Equity Ratio	65.7%

How did CMCO perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

24%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is CMCO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CMCO?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CMCO. This is calculated by dividing CMCO's market cap by their current preferred multiple.
What is CMCO's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$876.22m

CMCO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.4x
Enterprise Value/EBITDA	10.2x
PEG Ratio	0.8x

Price to Earnings Ratio vs Peers

How does CMCO's PE Ratio compare to its peers?

CMCO PE Ratio vs Peers

The above table shows the PE ratio for CMCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	26.6x

Forward PE

Price-To-Earnings vs Peers: CMCO is expensive based on its Price-To-Earnings Ratio (29.5x) compared to the peer average (26.6x).

Price to Earnings Ratio vs Industry

How does CMCO's PE Ratio compare vs other companies in the U.S. Machinery Industry?

Price-To-Earnings vs Industry: CMCO is expensive based on its Price-To-Earnings Ratio (29.5x) compared to the US Machinery industry average (21.7x)

Price to Earnings Ratio vs Fair Ratio

What is CMCO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CMCO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	29.5x
Fair PE Ratio	26.7x

Price-To-Earnings vs Fair Ratio: CMCO is expensive based on its Price-To-Earnings Ratio (29.5x) compared to the estimated Fair Price-To-Earnings Ratio (26.7x).

Share Price vs Fair Value

What is the Fair Price of CMCO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CMCO ($30.69) is trading below our estimate of fair value ($103.28)

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

Price to Earnings Growth Ratio

PEG Ratio: CMCO is good value based on its PEG Ratio (0.8x)

Discover undervalued companies

Future Growth

How is Columbus McKinnon forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

35.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMCO's forecast earnings growth (35.1% per year) is above the savings rate (1.9%).

Earnings vs Market: CMCO's earnings (35.1% per year) are forecast to grow faster than the US market (14% per year).

High Growth Earnings: CMCO's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CMCO's revenue (5.8% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: CMCO's revenue (5.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CMCO's Return on Equity is forecast to be low in 3 years time (9.6%).

Discover growth companies

Past Performance

How has Columbus McKinnon performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

4.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CMCO has a large one-off loss of $28.3M impacting its March 31 2022 financial results.

Growing Profit Margin: CMCO's current net profit margins (3.3%) are higher than last year (1.4%).

Past Earnings Growth Analysis

Earnings Trend: CMCO's earnings have grown by 4.9% per year over the past 5 years.

Accelerating Growth: CMCO's earnings growth over the past year (225.7%) exceeds its 5-year average (4.9% per year).

Earnings vs Industry: CMCO earnings growth over the past year (225.7%) exceeded the Machinery industry 24%.

Return on Equity

High ROE: CMCO's Return on Equity (3.8%) is considered low.

Discover strong past performing companies

Financial Health

How is Columbus McKinnon's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CMCO's short term assets ($466.6M) exceed its short term liabilities ($249.6M).

Long Term Liabilities: CMCO's short term assets ($466.6M) do not cover its long term liabilities ($663.3M).

Debt to Equity History and Analysis

Debt Level: CMCO's net debt to equity ratio (50.6%) is considered high.

Reducing Debt: CMCO's debt to equity ratio has reduced from 125.4% to 65.7% over the past 5 years.

Debt Coverage: CMCO's debt is not well covered by operating cash flow (9.6%).

Interest Coverage: CMCO's interest payments on its debt are well covered by EBIT (4.4x coverage).

Balance Sheet

Discover healthy companies

Dividend

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

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.91%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CMCO's dividend (0.91%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: CMCO's dividend (0.91%) is low compared to the top 25% of dividend payers in the US market (4.24%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CMCO has been paying a dividend for less than 10 years.

Growing Dividend: CMCO's dividend payments have increased, but the company has only paid a dividend for 8 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (23.6%), CMCO's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (22.3%), CMCO's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure

CEO

David Wilson (52 yo)

2yrs

Tenure

US$4,075,929

Compensation

Mr. David J. Wilson serves as an Independent Director of Modine Manufacturing Company since May 09, 2022. He serves as President, Chief Executive Officer and Director at Columbus McKinnon Corporation since...

CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD4.08M) is about average for companies of similar size in the US market ($USD4.05M).

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

Leadership Team

Experienced Management: CMCO's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.

Board Members

Experienced Board: CMCO's board of directors are considered experienced (4.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31