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Reuters Company Research: Manitowoc Company, Inc. (MTW)
Reuters Company Research: Manitowoc Company, Inc. (MTW)
Reuters Company Research: Manitowoc Company, Inc. (MTW)
2000 2010
Share Price Summary Overview Percent Price Change MTW S&P 500
Close Price on 2/1/10........................................... $11.44 Float (mil)........................................................... 125.300 Year to Date................................14.74........... -2.32
Absolute Price Change on 2/1/10.............................. 0.57 10 Day Average Volume (mil)................................... 3.500 One Year...................................125.64.......... 31.95
Percent Change..................................................... 4.95% 1 Day Volume Change on 2/1/10.........................-45.15% Two Years................................. -70.79......... -21.95
Off 52-Week High...............................................-21.66% Market Capitalization (mil)......................................$1,494 Three Years............................... -58.40......... -24.80
Over 52-Week Low............................................ 388.89% TTM Price/Earnings......................................................NA Five Years................................... 22.03........... -8.72
Beta....................................................................... 2.620 Price/Earnings Current Fiscal Year Estimate.............. 33.39 Ten Years................................... 65.27......... -22.70
Table of Contents
Reuters Rating ....................................... 2 General Sentiment ..................................5 Footprints of Success ............................. 8
Getting Acquainted ................................. 3 Stock Price Rationale ..............................6
Share Price Trends .................................4 Expectations and Credibility .....................7
This research report is provided for informational purposes only and on the condition that it will not form the sole basis for any investment decision. Reference to any company is not a recommendation
to buy or sell the shares of such company. The information used for, or presented in, this report has been obtained from sources believed to be reliable, but Reuters makes no representation as to the
accuracy or completeness of such information. This report in intended only for users in the United States. Reuters has no obligation to update, modify or amend this report or to otherwise notify a reader
thereof in the event that any matter stated herein becomes inaccurate. Reuters and/or its affiliates/investors may hold securities positions in the companies discussed in this report and may frequently
trade in such positions. Such investments may be inconsistent with the quantitative analysis provided in this report.
This report was generated using a proprietary quantitative model that leverages widely accepted statistical methods and financial concepts to rank and rate a universe of more than 4700 US companies
and US-listed ADRs with a market capitalization greater than $50mm based on a series of financial attributes. These ratings are not intended as an indication of how an individual's investment will
perform. As used in this report, "Outperform" designates the companies that rank in the top 30% of companies covered by Reuters, "Neutral" designates the middle 40%, and the bottom 30% are
designated "Underperform". All ratings are relative to the universe of companies covered by Reuters and not to any specific benchmark.
© Reuters 2004. All rights reserved. This report may not be reproduced, modified, distributed or published without the prior written authorization of Reuters. Reuters and the sphere logo are the
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Manitowoc Company, Inc. (NYSE:MTW) -- Constr. & Agric. Machinery/Capital Goods Reuters Company Research
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MTW shares are presently rated OUTPERFORM. Value Catch-up 24%
No forecast is made for the stock market as a whole. Value Operational
However, we do believe that whichever way the market Catch-up Trends
moves, stocks rated OUTPERFORM have, in the
aggregate, a higher probability of performing better than "Under" = Underperform Technical Factors: Outperform
most others.
This rating is based on analyses of share price
movements over a variety of time periods. We
Fundamental Quality Component: Neutral compare performance characteristics of individual
This rating is based on characteristics traditionally associated with "good" companies. We focus on how each company stocks with those of all the others we rate.
measures up against others, and give careful attention to recent improvement or slippage relative to other companies. Generally speaking, our goal is to favor up-trending
TTM = Trailing Twelve Months. shares that have experienced recent corrections
and de-emphasize down-trending shares
Very Negative Negative Neutral Positive Very Positive
experiencing uncharacteristic periods of strength.
TTM Return on Investment Here is how MTW shares performed during the
Improvement in TTM Return on Investment various periods we examined.
TTM Pretax Margin
Improvement in TTM Pretax Margin Price Change
Depreciation in Excess of Capital Spending Needs Past 7 days -0.3%
Past 30 days 14.7%
Issuance/Repurchase of Common Shares Past 60 days 18.5%
Common Shares Dilution
Presence/Absence of Unusual Income Items
Change for Past 180 Days: 76.3%
Value Catch-up Component: Neutral
This rating measures the extent to which the share price adequately reflects improving or eroding fundamentals, and favors $11.44
shares whose prices have been slower to "catch up" to improving performance measures. TTM = Trailing Twelve Months.
$6.49
Very Negative Negative Neutral Positive Very Positive
Open on 8/6/09 Close on 2/1/10
Price Catch-up with TTM Earnings
Price Catch-up to TTM Sales
Price Catch-up to TTM Free Cash Flow Change Between 60 and 30 Days Ago: 3.3%
Price Catch-up to MRQ Book Value
Getting Acquainted
Start your analysis by learning what the company does, how well it does it, where it stands relative to peers, and whether aspects of the corporate structure or capitalization are
bothersome to you.
Financial Trends
TTM = Trailing Twelve Months, * = Most Recent Quarter.
Historic Growth Rates
Fiscal Year Ending 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 TTM 3 Year 5 Year 10 Year
Sales (mil) $1,844.9 $2,254.1 $2,650.8 $3,684.0 $4,503.0 $4,160.4 25.94 25.13 NA
EPS (GAAP) $0.35 $0.48 $1.27 $2.47 $0.61 ($5.63) 8.46 49.93 NA
Dividends/Share $0.07 $0.07 $0.07 $0.08 $0.07 $0.07 0.00 0.00 NA
Book Value/Share $4.33 $4.47 $6.23 $10.39 $9.97 * $4.92 30.62 28.85 NA
Tangible Book Value/Sh. ($0.73) ($0.22) $1.23 $5.22 ($12.27) * ($11.86) NA NA NA
Cash Flow/Share $0.83 $1.00 $1.83 $3.14 $1.30 ($4.73) 9.40 19.88 NA
Free Cash Flow/Share $0.06 $0.35 $1.75 $0.95 $1.14 $1.62 47.95 1.76 NA
Key Ratios
Historic Averages
Fiscal Year Ending 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 TTM 3 Year 5 Year 10 Year
% Sales Growth 25.7 22.2 17.6 39.0 22.2 (4.0) 26.3 25.3 21.1
% EPS Growth 330.2 38.0 163.7 95.0 (75.2) (375.4) 61.2 110.3 45.9
% Gross Margin 20.4 18.7 23.1 23.4 22.6 21.3 23.0 21.6 23.7
% Operating Margin 5.6 5.5 10.4 12.6 3.0 (15.9) 8.7 7.4 8.9
% Tax Rate 19.0 20.0 32.0 27.9 1.9 NA 20.6 20.2 26.8
% Return on Assets 2.2 3.0 7.6 12.4 1.7 (18.4) 7.2 5.4 5.9
% Return on Investment 3.3 4.6 12.4 20.4 2.5 (27.1) 11.8 8.7 9.2
% Return on Equity 9.3 11.1 24.1 29.6 6.0 (66.4) 19.9 16.0 17.3
Asset Turnover 1.0 1.2 1.3 1.4 1.0 1.0 1.2 1.2 1.2
Receivables Turnover 7.5 9.2 10.0 10.5 8.8 9.1 9.8 9.2 9.1
Inventory Turnover 5.7 5.9 5.0 5.2 4.6 4.1 4.9 5.3 5.6
Peer Comparison
This table gives an indication of how Manitowoc Company, Inc. stands in key respects compared with companies in the Constr. & Agric. Machinery Industry
Current Fiscal Current Fiscal P/E Based on
Last Fiscal Year Year Projected Projected Year Projected Current Year EPS % Growth EPS % Growth
Company Name (Ticker) Revenue (mil) Revenue (mil) Price/Sales Operating EPS EPS Estimates Previous 5 Years Next 5 Years
Manitowoc Compa... (MTW) $4,503.0 $3,817.9 0.4 $0.61 $0.34 33.4 49.9 (40.0)
Hitachi Construction Ma... (6305) NA NA NA NA NA NA NA NA
SUMITOMO CORPORATION (8053) NA NA NA NA NA NA NA NA
Kobelco Eco-Solutions C... (6299) NA NA NA NA NA NA NA NA
Terex Corporation (TEX) $9,889.6 $5,092.1 0.4 $0.72 ($2.18) NM NA 4.7
Fushun Special Steel Co... (600399) NA NA NA NA NA NA NA NA
Sany Heavy Industry Co.... (600031) NA NA NA NA NA NA NA NA
Sichuan Changhong Elect... (600839) NA NA NA NA NA NA NA NA
High: 14.60
$14.60
10.60
6.60
2.60
Low: 2.34
Volume (mil)
Average Volume
4.54
Feb' 09 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan' 10
$51.00 $51.00
41.00 41.00
31.00 31.00
21.00 21.00
11.00 11.00
0.03 0.05
2001 2002 2003 2004 2005 2006 2007 2008 2009 Vol (bil) 2005 2006 2007 2008 2009 Vol (bil)
$14.00
$14.00
12.10 13.10
10.20 12.20
8.30 11.30
10.40
6.40
5.03 4.42
Aug' 09 Sep Oct Nov Dec Jan' 10 Vol (mil) Jan' 10 Vol (mil)
General Sentiment
You can follow popular opinion or choose a contrarian's strategy. Either way, you should know whether the Street is bullish or bearish. Investor sentiment is typically positive when
the 50-day moving average is rising, especially if it's also above the 200-day moving average. Additionally, changes in price trend can be deemed more definitive if supported by
higher than normal volume.
$14.60
10.60
6.60
Volume (mil)
Average Volume
4.55
Feb' 09 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan' 10
Price History
Calendar Year 2001 2002 2003 2004 2005 2006 2007 2008 2009
High Price 8.21 11.10 7.95 9.96 13.50 31.33 51.49 48.90 12.24
Low Price 5.58 5.53 4.18 6.90 8.58 12.41 25.67 4.56 2.34
Year End Price 7.78 6.38 7.80 9.41 12.56 29.72 48.83 8.66 9.97
Fiscal Year Ending 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09E 12/31/10E
Sales/Share $13.15 $13.74 $16.85 $18.32 $21.11 $28.90 $34.66 $29.38 $25.18
Price/Sales NA NA NA 0.74 1.32 1.54 0.27 0.39 0.45
EPS (GAAP) $0.40 $0.08 $0.35 $0.48 $1.27 $2.47 $0.61 $0.34 $0.24
P/E (GAAP) NA NA NA 28.41 22.05 18.00 15.49 33.39 48.60
EPS (Normalized) $0.48 $0.12 $0.37 $0.56 $1.34 $2.55 $0.86 $0.34 $0.24
P/E (Normalized) NA NA NA 24.35 20.77 17.42 10.97 33.39 48.60
Dividend Yield (%) NA NA NA 0.51 0.25 0.17 0.74 0.68 0.61
Price/EPS (Est.) for Current FY Price/EPS (Est.) for Next FY Long Term Growth Estimate Next FY P/E over LT Growth
Manitowoc Company, Inc. 33.39 48.60 (40.00) NA
Constr. & Agric. Machinery 21.16 15.50 21.51 0.91
S&P 500 16.12 13.45 10.23 1.84
Estimates In Context
Below are the present consensus revenue and EPS estimates. Notice whether analysts expect recent year-to-year growth trends to persist, or are forecasting sharp improvement or
deterioration. The sharper the predicted change, the greater the level of uncertainty in the forecast. (GAAP = Generally Accepted Accounting Principles)
Annual Growth EPS (%) Sales (%) Quarterly Growth EPS (%) Sales (%) Quarterly EPS Estimate Revisions
5 year Estimate (40.0) NA 03/10 qtr. Estimate NA (23.4)
2009 Estimate (44.1) (15.2) 12/09 qtr. Estimate (97.3) (27.8) 12/09 qtr.
Last 5 years 49.9 25.1 09/09 qtr. NA (20.4)
Last 3 years 8.5 25.9 06/09 qtr. (80.8) (20.7) $0.20
Last Year (75.2) 22.2 03/09 qtr. (76.9) (4.6) 0.18
Trailing 12 Months (375.4) (4.0) 12/08 qtr. (31.1) 8.8 0.15
0.13
Analyst Recommendation Trends May Aug Nov Feb
Difference of opinion is normal, so don't demand unanimity. Look for ratings clusters in a part of the best-to-worst scale and 03/10 qtr.
at Mean Rating scores. Also important is whether analyst sentiment is improving or declining over time. $0.18
0.16
Buy Outperform Hold Underperform Sell Mean
0.13
(Value 1) (Value 2) (Value 3) (Value 4) (Value 5) Rating
As of 2/1/10 4 0 5 2 0 2.45 0.11
As of 4 Weeks ago 4 0 5 2 0 2.45 May Aug Nov Feb
As of 8 Weeks ago 4 0 5 2 0 2.45 06/10 qtr.
As of 12 Weeks ago 4 0 5 2 0 2.45
$0.11
0.09
Bar Chart Key Mean Rating 0.06
12 Wks ago R 2/1 1.00 = Best 0.04
5.00 = Worst May Aug Nov Feb
0.49
6.30
0.41
2.60 0.33
FY 2004
Feb' 09 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan' 10
Footprints of Success
In many respects, business success requires subjective judgment. However, over time, good companies tend to leave good footprints, which become most visible when company data
is compared to industry/sector/market benchmarks. That's how you see when companies perform well, not just because a rising business tide lifts all boats, but because the company
is doing unique, good things. Look, too, at time-series comparisons, and take note of companies that are improving faster or suffering less than peers.
Capital Spending Growth for Past 5 Years 36.5 15.8 3.3 (2.6) 78
EPS Growth for Most Recent Quarter 65.0 (47.0) (9.9) 9.7 NA
EPS Growth for Trailing Twelve Months (375.4) (48.2) (23.2) (0.8) NA
EPS Growth for Past 5 Years 49.9 5.8 14.0 15.2 75
Worst R Best = Co. underperforming = Co. outperforming
Company Quality
Some companies excel in obtaining high margins (watch out for very low tax rates, which may reflect special benefits that often won't persist indefinitely) while others are highly
efficient. Still others are strong in both respects. These trade-offs are balanced in the Management Effectiveness returns, which combine both factors. TTM = Trailing Twelve Months.
Financial Strength
Quick Ratio (cash and marketable securities divided by current liabilities) and Current Ratio (all current assets divided by current liabilities) give a sense of how readily the company
could cover current obligations if the sales were to stop. Higher ratios indicate greater liquidity. Different businesses have different cash inflow-outflow characteristics, so compare
companies to industry averages. Similar comparisons are relevant for debt ratios (higher ratios indicate more debt and, hence, more financial risk) and interest coverage (lower
numbers signify greater risk).
Company Rank MTW MTW MTW
MTW Industry Sector S&P 500 in Industry vs. Industry vs. Sector vs. S&P 500
Quick Ratio 0.7 1.1 1.1 1.4 23
Current Ratio 1.3 2.4 2.0 2.0 20
Total Debt to Equity 372.1 304.9 132.2 77.0 4
Long Term Debt to Equity 344.7 217.2 113.8 69.8 4
Interest Coverage (1.1) 3.2 9.6 12.2 4
Worst R Best = Co. underperforming = Co. outperforming