NasdaqGS:CMCO

Stock Analysis Report

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Market Cap

US$1.3b

Last Updated

2021/08/04 23:06 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CMCO's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-2.7%

CMCO

1.7%

US Machinery

0.9%

US Market


1 Year Return

28.9%

CMCO

48.8%

US Machinery

34.7%

US Market

Return vs Industry: CMCO underperformed the US Machinery industry which returned 48.8% over the past year.

Return vs Market: CMCO underperformed the US Market which returned 34.7% over the past year.


Shareholder returns

CMCOIndustryMarket
7 Day-2.7%1.7%0.9%
30 Day-7.0%0.6%0.2%
90 Day-13.3%-2.5%4.7%
1 Year29.6%28.9%51.9%48.8%36.8%34.7%
3 Year10.0%8.0%60.2%50.8%62.5%52.4%
5 Year173.5%165.9%137.7%112.9%123.1%98.4%

Long-Term 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?

17.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CMCO ($44.61) is trading below our estimate of fair value ($53.95)

Significantly Below Fair Value: CMCO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CMCO is poor value based on its PE Ratio (228.4x) compared to the US Machinery industry average (31.7x).

PE vs Market: CMCO is poor value based on its PE Ratio (228.4x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: CMCO is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: CMCO is good value based on its PB Ratio (1.7x) compared to the US Machinery industry average (2.8x).


Future Growth

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

63.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMCO's forecast earnings growth (63.7% per year) is above the savings rate (2%).

Earnings vs Market: CMCO's earnings (63.7% per year) are forecast to grow faster than the US market (14.9% per year).

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

Revenue vs Market: CMCO's revenue (10.2% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: CMCO's revenue (10.2% 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


Past Performance

How has Columbus McKinnon performed over the past 5 years?

8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMCO has a large one-off loss of $31.8M impacting its June 30 2021 financial results.

Growing Profit Margin: CMCO's current net profit margins (0.7%) are lower than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: CMCO's earnings have grown by 8.6% per year over the past 5 years.

Accelerating Growth: CMCO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CMCO had negative earnings growth (-87.4%) over the past year, making it difficult to compare to the Machinery industry average (6.8%).


Return on Equity

High ROE: CMCO's Return on Equity (0.7%) is considered low.


Financial Health

How is Columbus McKinnon's financial position?


Financial Position Analysis

Short Term Liabilities: CMCO's short term assets ($382.2M) exceed its short term liabilities ($245.2M).

Long Term Liabilities: CMCO's short term assets ($382.2M) do not cover its long term liabilities ($611.0M).


Debt to Equity History and Analysis

Debt Level: CMCO's debt to equity ratio (63.8%) is considered high.

Reducing Debt: CMCO's debt to equity ratio has reduced from 86.8% to 63.8% over the past 5 years.

Debt Coverage: CMCO's debt is not well covered by operating cash flow (17.7%).

Interest Coverage: CMCO's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Dividend

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

0.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CMCO's dividend (0.54%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: CMCO's dividend (0.54%) is low compared to the top 25% of dividend payers in the US market (3.54%).


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

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

3.5yrs

Average management tenure


CEO

David Wilson (52 yo)

1.17yrs

Tenure

US$5,572,610

Compensation

Mr. David J. Wilson serves as President, Chief Executive Officer and Director at Columbus McKinnon Corporation since June 1, 2020. Mr. Wilson served as President of Flowserve Corporation Pumps Division fro...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD5.57M) is above average for companies of similar size in the US market ($USD3.69M).

Compensation vs Earnings: Insufficient data to compare David's compensation with company performance.


Leadership Team

Experienced Management: CMCO's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: CMCO's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.9%.


Top Shareholders

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$1.267b
  • Shares outstanding: 28.40m
  • Website: https://www.columbusmckinnon.com

Number of Employees


Location

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

Listings


Biography

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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/04 23:06
End of Day Share Price2021/08/04 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.