NYSE:HY

Stock Analysis Report

Hyster-Yale Materials Handling

Executive Summary

Hyster-Yale Materials Handling, Inc., through its subsidiaries, designs, engineers, manufactures, sells, and services a line of lift trucks, attachments, and aftermarket parts worldwide.

Rewards

Earnings are forecast to grow 77.13% per year

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record



Snowflake Analysis

Moderate growth potential and slightly overvalued.

Share Price & News

How has Hyster-Yale Materials Handling's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.3%

HY

-0.6%

US Machinery

-0.3%

US Market


1 Year Return

-0.1%

HY

21.2%

US Machinery

18.6%

US Market

Return vs Industry: HY underperformed the US Machinery industry which returned 21.2% over the past year.

Return vs Market: HY underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

HYIndustryMarket
7 Day2.3%-0.6%-0.3%
30 Day8.0%-0.4%2.2%
90 Day10.1%11.9%5.6%
1 Year2.2%-0.1%23.5%21.2%21.1%18.6%
3 Year-6.2%-11.4%39.6%30.7%45.6%36.2%
5 Year-8.4%-16.7%70.1%49.9%71.1%52.2%

Price Volatility Vs. Market

How volatile is Hyster-Yale Materials Handling's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hyster-Yale Materials Handling undervalued compared to its fair value and its price relative to the market?

32.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HY ($60.59) is trading above our estimate of fair value ($48.7)

Significantly Below Fair Value: HY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HY is poor value based on its PE Ratio (32.3x) compared to the Machinery industry average (22.1x).

PE vs Market: HY is poor value based on its PE Ratio (32.3x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: HY is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: HY is good value based on its PB Ratio (2x) compared to the US Machinery industry average (2.5x).


Next Steps

Future Growth

How is Hyster-Yale Materials Handling forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

77.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HY's forecast earnings growth (77.1% per year) is above the savings rate (1.7%).

Earnings vs Market: HY's earnings (77.1% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: HY's revenue (5.8% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: HY'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: Insufficient data to determine if HY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hyster-Yale Materials Handling performed over the past 5 years?

-26.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HY has high quality earnings.

Growing Profit Margin: HY's current net profit margins (0.9%) are lower than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: HY's earnings have declined by -26.9% per year over the past 5 years.

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

Earnings vs Industry: HY had negative earnings growth (-6.9%) over the past year, making it difficult to compare to the Machinery industry average (13.5%).


Return on Equity

High ROE: HY's Return on Equity (5.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hyster-Yale Materials Handling's financial position?


Financial Position Analysis

Short Term Liabilities: HY's short term assets ($1.2B) exceed its short term liabilities ($838.7M).

Long Term Liabilities: HY's short term assets ($1.2B) exceed its long term liabilities ($457.0M).


Debt to Equity History and Analysis

Debt Level: HY's debt to equity ratio (61.2%) is considered high.

Reducing Debt: HY's debt to equity ratio has increased from 5.3% to 61.2% over the past 5 years.

Debt Coverage: HY's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: HY's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: HY's debt is covered by short term assets (assets are 3.5x debt).


Next Steps

Dividend

What is Hyster-Yale Materials Handling's current dividend yield, its reliability and sustainability?

2.10%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: HY's dividend (2.1%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: HY's dividend (2.1%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

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

Growing Dividend: HY's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.8%), HY's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Hyster-Yale Materials Handling's salary, the management and board of directors tenure and is there insider trading?

7.3yrs

Average management tenure


CEO

Al Rankin (78yo)

7.3yrs

Tenure

US$4,469,254

Compensation

Mr. Alfred Marshall Rankin, Jr., also known as Al, serves as the Non-Executive Chairman of NACCO Industries, Inc. since September 2017 and since prior to 2013 Chairman of NACCO’s principal subsidiary, Nort ...


CEO Compensation Analysis

Compensation vs Market: Al's total compensation ($USD4.47M) is above average for companies of similar size in the US market ($USD2.63M).

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


Management Age and Tenure

7.3yrs

Average Tenure

58.5yo

Average Age

Experienced Management: HY's management team is seasoned and experienced (7.3 years average tenure).


Board Age and Tenure

7.9yrs

Average Tenure

67.5yo

Average Age

Experienced Board: HY's board of directors are considered experienced (7.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$57,81206 Nov 19
Theodore Taplin
EntityIndividual
Shares1,018
Max PriceUS$56.79
SellUS$113,37927 Aug 19
Martha Kelly
EntityIndividual
Shares2,100
Max PriceUS$53.99
SellUS$94,41327 Aug 19
Susan Sichel
EntityIndividual
Shares1,750
Max PriceUS$53.95
SellUS$55,31006 Aug 19
Theodore Taplin
EntityIndividual
Shares1,000
Max PriceUS$55.31
BuyUS$45,61115 Mar 19
Clara Williams
EntityIndividual
Shares711
Max PriceUS$64.99
SellUS$159,15715 Mar 19
Theodore Taplin
EntityIndividual
Shares2,500
Max PriceUS$65.25
BuyUS$4,96715 Mar 19
Thomas Rankin
EntityIndividual
Shares79
Max PriceUS$62.87
BuyUS$10,23715 Mar 19
Thomas Rankin
EntityIndividual
Shares158
Max PriceUS$64.99
BuyUS$30,40815 Mar 19
Clara Rankin
EntityIndividual
Shares474
Max PriceUS$64.99
BuyUS$91,03015 Mar 19
Bruce Rankin
EntityIndividual
Shares1,419
Max PriceUS$64.99
BuyUS$10,07015 Mar 19
Alison Rankin
EntityIndividual
Shares158
Max PriceUS$64.59
BuyUS$80,42915 Mar 19
Victoire Rankin
EntityIndividual
Shares1,262
Max PriceUS$64.59
BuyUS$41,00915 Mar 19
Victoire Rankin
EntityIndividual
Shares631
Max PriceUS$64.99
BuyUS$60,68715 Mar 19
Alfred Rankin
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares946
Max PriceUS$64.99
BuyUS$45,61115 Mar 19
Helen Butler
EntityIndividual
Shares711
Max PriceUS$64.99
BuyUS$30,80213 Mar 19
Clara Williams
EntityIndividual
Shares474
Max PriceUS$64.98
BuyUS$41,00513 Mar 19
Victoire Rankin
EntityIndividual
Shares631
Max PriceUS$64.98
BuyUS$41,00313 Mar 19
Victoire Rankin
EntityIndividual
Shares631
Max PriceUS$64.98
BuyUS$5,13413 Mar 19
Thomas Rankin
EntityIndividual
Shares79
Max PriceUS$64.98
BuyUS$5,13313 Mar 19
Thomas Rankin
EntityIndividual
Shares79
Max PriceUS$64.98
BuyUS$20,53513 Mar 19
Clara Rankin
EntityIndividual
Shares316
Max PriceUS$64.98
BuyUS$61,47413 Mar 19
Bruce Rankin
EntityIndividual
Shares946
Max PriceUS$64.98
BuyUS$10,26713 Mar 19
Alison Rankin
EntityIndividual
Shares158
Max PriceUS$64.98
BuyUS$20,47013 Mar 19
Alfred Rankin
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares315
Max PriceUS$64.98
BuyUS$20,46913 Mar 19
Alfred Rankin
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares315
Max PriceUS$64.98
BuyUS$30,80213 Mar 19
Helen Butler
EntityIndividual
Shares474
Max PriceUS$64.98
BuyUS$12,46011 Mar 19
Clara Williams
EntityIndividual
Shares192
Max PriceUS$64.89
BuyUS$66,09011 Mar 19
Victoire Rankin
EntityIndividual
Shares1,024
Max PriceUS$64.89
BuyUS$8,26111 Mar 19
Thomas Rankin
EntityIndividual
Shares128
Max PriceUS$64.89
BuyUS$24,91911 Mar 19
Bruce Rankin
EntityIndividual
Shares384
Max PriceUS$64.89
BuyUS$16,61311 Mar 19
Alfred Rankin
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares256
Max PriceUS$64.89
BuyUS$4,15311 Mar 19
Alison Rankin
EntityIndividual
Shares64
Max PriceUS$64.89
BuyUS$16,43311 Mar 19
Alfred Rankin
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares256
Max PriceUS$64.19
BuyUS$24,78411 Mar 19
Helen Butler
EntityIndividual
Shares384
Max PriceUS$64.89
BuyUS$12,47806 Mar 19
Clara Williams
EntityIndividual
Shares192
Max PriceUS$64.99
BuyUS$33,27506 Mar 19
Victoire Rankin
EntityIndividual
Shares512
Max PriceUS$64.99
BuyUS$8,31906 Mar 19
Clara Rankin
EntityIndividual
Shares128
Max PriceUS$64.99
BuyUS$4,15906 Mar 19
Thomas Rankin
EntityIndividual
Shares64
Max PriceUS$64.99
BuyUS$24,95606 Mar 19
Bruce Rankin
EntityIndividual
Shares384
Max PriceUS$64.99
BuyUS$4,15906 Mar 19
Alison Rankin
EntityIndividual
Shares64
Max PriceUS$64.99
BuyUS$16,63706 Mar 19
Alfred Rankin
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares256
Max PriceUS$64.99
BuyUS$12,47806 Mar 19
Helen Butler
EntityIndividual
Shares192
Max PriceUS$64.99
BuyUS$6,23805 Mar 19
Clara Williams
EntityIndividual
Shares96
Max PriceUS$64.98
BuyUS$4,15905 Mar 19
Clara Rankin
EntityIndividual
Shares64
Max PriceUS$64.98
BuyUS$12,47605 Mar 19
Bruce Rankin
EntityIndividual
Shares192
Max PriceUS$64.98
BuyUS$16,70005 Mar 19
Victoire Rankin
EntityIndividual
Shares257
Max PriceUS$64.98
BuyUS$8,31805 Mar 19
Alfred Rankin
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares128
Max PriceUS$64.98
BuyUS$2,07905 Mar 19
Thomas Rankin
EntityIndividual
Shares32
Max PriceUS$64.98
BuyUS$6,23805 Mar 19
Helen Butler
EntityIndividual
Shares96
Max PriceUS$64.98

Ownership Breakdown

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


Management Team

  • Al Rankin (78yo)

    Chairman

    • Tenure: 7.3yrs
    • Compensation: US$4.47m
  • Kenneth Schilling (59yo)

    Senior VP & CFO

    • Tenure: 7.3yrs
    • Compensation: US$946.49k
  • Lauren Miller (64yo)

    Chief Marketing Officer & Senior VP

    • Tenure: 4.9yrs
  • Colin Wilson (65yo)

    President & CEO of Hyster-Yale Group Inc

    • Tenure: 5.3yrs
    • Compensation: US$2.74m
  • Suzy Taylor (56yo)

    Senior VP

    • Tenure: 3.6yrs
  • Rajiv Prasad (55yo)

    Chief Product & Operations Officer of Hyster-Yale Group Inc

    • Tenure: 7.9yrs
    • Compensation: US$1.52m
  • Chuck Pascarelli (59yo)

    Senior VP & President of Americas - Hyster-Yale Group

    • Tenure: 0yrs
    • Compensation: US$1.35m
  • Jennifer Langer (45yo)

    VP & Controller

    • Tenure: 7.3yrs
  • Brian Frentzko (58yo)

    VP & Treasurer

    • Tenure: 7.3yrs
  • Anthony Salgado (48yo)

    Chief Operating Officer of Hyster-Yale Group Inc.

    • Tenure: 0.4yrs

Board Members

  • Eugene Wong (84yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$207.22k
  • Al Rankin (78yo)

    Chairman

    • Tenure: 7.3yrs
    • Compensation: US$4.47m
  • John Butler (58yo)

    Director

    • Tenure: 7.9yrs
    • Compensation: US$203.62k
  • Dennis LaBarre (76yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$253.75k
  • Britton Taplin (62yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$195.11k
  • James Bemowski (65yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$138.97k
  • John Jumper (74yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$231.55k
  • Carolyn Corvi (67yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$243.11k
  • Clay Rankin (68yo)

    Director

    • Tenure: 7.9yrs
    • Compensation: US$195.11k
  • H. Poor (67yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$208.05k

Company Information

Hyster-Yale Materials Handling, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hyster-Yale Materials Handling, Inc.
  • Ticker: HY
  • Exchange: NYSE
  • Founded: 1991
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$955.681m
  • Shares outstanding: 16.67m
  • Website: https://www.hyster-yale.com

Number of Employees


Location

  • Hyster-Yale Materials Handling, Inc.
  • 5875 Landerbrook Drive
  • Suite 300
  • Cleveland
  • Ohio
  • 44124
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HYNYSE (New York Stock Exchange)YesClass A Common StockUSUSDSep 2012
HYEADB (Deutsche Boerse AG)YesClass A Common StockDEEURSep 2012

Biography

Hyster-Yale Materials Handling, Inc., through its subsidiaries, designs, engineers, manufactures, sells, and services a line of lift trucks, attachments, and aftermarket parts worldwide. It manufactures co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 00:23
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.