Manitex International, Inc. (NASDAQ:MNTX) On The Verge Of Breaking Even

By
Simply Wall St
Published
March 03, 2021
NasdaqCM:MNTX

We feel now is a pretty good time to analyse Manitex International, Inc.'s (NASDAQ:MNTX) business as it appears the company may be on the cusp of a considerable accomplishment. Manitex International, Inc. provides engineered lifting solutions worldwide. The company’s loss has recently broadened since it announced a US$8.5m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$20m, moving it further away from breakeven. Many investors are wondering about the rate at which Manitex International will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Manitex International

Consensus from 2 of the American Machinery analysts is that Manitex International is on the verge of breakeven. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$6.7m in 2021. Therefore, the company is expected to breakeven roughly a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 112% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
NasdaqCM:MNTX Earnings Per Share Growth March 3rd 2021

Given this is a high-level overview, we won’t go into details of Manitex International's upcoming projects, but, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one issue worth mentioning. Manitex International currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Manitex International's case is 77%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Manitex International, so if you are interested in understanding the company at a deeper level, take a look at Manitex International's company page on Simply Wall St. We've also compiled a list of pertinent factors you should look at:

  1. Valuation: What is Manitex International worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Manitex International is currently mispriced by the market.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Manitex International’s board and the CEO’s background.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

Promoted
When trading Manitex International or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.


This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.


Simply Wall St character - Warren

Simply Wall St

Simply Wall St is a financial technology startup focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of equity analysts with a public, market-beating track record. Learn more about the team behind Simply Wall St.