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.
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.
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.
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:
- 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.
- 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.
- 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.
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What are the risks and opportunities for Manitex International?
Earnings are forecast to grow 115.36% per year
Does not have a meaningful market cap ($79M)
Has less than 1 year of cash runway
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