Columbus McKinnon Corp. (CMCO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Federal Signal Corp.

Arcosa, Inc.

Columbus McKinnon Corp.

Lindsay Corp.

SiteOne Landscape Supply, Inc.

Alamo Group, Inc.

Terex Corp.

BWX Technologies, Inc.

Astec Industries, Inc.

Greenbrier Cos., Inc.

Trinity Industries, Inc.

Why is Columbus McKinnon Corp. ?

Poor Management Efficiency with a low ROCE of 6.99%

The company has been able to generate a Return on Capital Employed (avg) of 6.99% signifying low profitability per unit of total capital (equity and debt)

The company has declared Negative results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 38.22 MM
PRE-TAX PROFIT(Q) At USD -1.44 MM has Fallen at -111.95%
NET PROFIT(Q) At USD -1.7 MM has Fallen at -119.7%

With ROCE of 4.21%, it has a risky valuation with a 0.66 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -59.49%, its profits have fallen by -112.2%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -59.49% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Columbus McKinnon Corp. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Columbus McKinnon Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Columbus McKinnon Corp.

-56.15%

-0.79

70.12%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.45%

EBIT Growth (5y)

88.61%

EBIT to Interest (avg)

2.89

Debt to EBITDA (avg)

2.56

Net Debt to Equity (avg)

0.47

Sales to Capital Employed (avg)

0.71

Tax Ratio

6.67%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

6.99%

ROE (avg)

3.65%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.50

EV to EBIT

15.65

EV to EBITDA

8.32

EV to Capital Employed

0.66

EV to Sales

0.89

PEG Ratio

Dividend Yield

183.00%

ROCE (Latest)

4.21%

ROE (Latest)

-0.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 56.4 %

-23What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 38.22 MM

PRE-TAX PROFIT(Q)

At USD -1.44 MM has Fallen at -111.95%

NET PROFIT(Q)

At USD -1.7 MM has Fallen at -119.7%

ROCE(HY)

Lowest at -1.74%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.04 times

RAW MATERIAL COST(Y)

Grown by 13.77% (YoY

CASH AND EQV(HY)

Lowest at USD 82.41 MM

Here's what is working for Columbus McKinnon Corp.

Debt-Equity Ratio

Lowest at 56.4 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at USD 12.27 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Columbus McKinnon Corp.

Pre-Tax Profit

At USD -1.44 MM has Fallen at -111.95%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -1.7 MM has Fallen at -119.7%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 38.22 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debtors Turnover Ratio

Lowest at 5.04 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Cash and Eqv

Lowest at USD 82.41 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 13.77% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales