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Yahoo
15-06-2025
- Business
- Yahoo
With 77% ownership of the shares, The Manitowoc Company, Inc. (NYSE:MTW) is heavily dominated by institutional owners
Institutions' substantial holdings in Manitowoc Company implies that they have significant influence over the company's share price 51% of the business is held by the top 13 shareholders Insiders have bought recently This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. If you want to know who really controls The Manitowoc Company, Inc. (NYSE:MTW), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 77% ownership. Put another way, the group faces the maximum upside potential (or downside risk). Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute. Let's take a closer look to see what the different types of shareholders can tell us about Manitowoc Company. Check out our latest analysis for Manitowoc Company Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. Manitowoc Company already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Manitowoc Company, (below). Of course, keep in mind that there are other factors to consider, too. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Manitowoc Company. Our data shows that BlackRock, Inc. is the largest shareholder with 12% of shares outstanding. With 9.3% and 5.9% of the shares outstanding respectively, Front Street Capital Management, Inc. and The Vanguard Group, Inc. are the second and third largest shareholders. In addition, we found that Aaron Ravenscroft, the CEO has 1.0% of the shares allocated to their name. A closer look at our ownership figures suggests that the top 13 shareholders have a combined ownership of 51% implying that no single shareholder has a majority. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. We can report that insiders do own shares in The Manitowoc Company, Inc.. It has a market capitalization of just US$397m, and insiders have US$14m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling. The general public, who are usually individual investors, hold a 20% stake in Manitowoc Company. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. It's always worth thinking about the different groups who own shares in a company. But to understand Manitowoc Company better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Manitowoc Company you should be aware of, and 1 of them shouldn't be ignored. Ultimately the future is most important. You can access this free report on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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. Sign in to access your portfolio
Yahoo
25-05-2025
- Business
- Yahoo
Estimating The Fair Value Of The Manitowoc Company, Inc. (NYSE:MTW)
Using the 2 Stage Free Cash Flow to Equity, Manitowoc Company fair value estimate is US$10.58 Manitowoc Company's US$10.33 share price indicates it is trading at similar levels as its fair value estimate The US$11.05 analyst price target for MTW is 4.4% more than our estimate of fair value In this article we are going to estimate the intrinsic value of The Manitowoc Company, Inc. (NYSE:MTW) by taking the forecast future cash flows of the company and discounting them back to today's value. This will be done using the Discounted Cash Flow (DCF) model. Believe it or not, it's not too difficult to follow, as you'll see from our example! We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$27.2m US$28.3m US$29.4m US$30.5m US$31.5m US$32.5m US$33.6m US$34.6m US$35.6m US$36.7m Growth Rate Estimate Source Est @ 4.77% Est @ 4.22% Est @ 3.84% Est @ 3.57% Est @ 3.38% Est @ 3.25% Est @ 3.16% Est @ 3.09% Est @ 3.05% Est @ 3.01% Present Value ($, Millions) Discounted @ 10% US$24.6 US$23.2 US$21.9 US$20.5 US$19.2 US$17.9 US$16.8 US$15.6 US$14.6 US$13.6 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$188m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.9%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 10%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$37m× (1 + 2.9%) ÷ (10%– 2.9%) = US$505m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$505m÷ ( 1 + 10%)10= US$187m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$375m. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of US$10.3, the company appears about fair value at a 2.4% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Manitowoc Company as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 10%, which is based on a levered beta of 1.730. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Manitowoc Company Strength Earnings growth over the past year exceeded the industry. Debt is well covered by cash flow. Weakness Interest payments on debt are not well covered. Opportunity Annual earnings are forecast to grow for the next 3 years. Good value based on P/E ratio and estimated fair value. Threat Annual earnings are forecast to grow slower than the American market. Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For Manitowoc Company, we've put together three relevant factors you should further research: Risks: To that end, you should learn about the 2 warning signs we've spotted with Manitowoc Company (including 1 which is significant) . Future Earnings: How does MTW's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
MTW Q1 Earnings Call: Tariff Pressures, Order Momentum, and Aftermarket Strategy in Focus
Crane and lifting equipment company Manitowoc (NYSE:MTW) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 4.9% year on year to $470.9 million. Its non-GAAP loss of $0.16 per share was 72.7% below analysts' consensus estimates. Is now the time to buy MTW? Find out in our full research report (it's free). Revenue: $470.9 million vs analyst estimates of $482 million (4.9% year-on-year decline, 2.3% miss) Adjusted EPS: -$0.16 vs analyst expectations of -$0.09 (72.7% miss) Adjusted EBITDA: $21.7 million vs analyst estimates of $16.14 million (4.6% margin, 34.4% beat) Operating Margin: 1.3%, down from 3.1% in the same quarter last year Free Cash Flow was $2.1 million, up from -$42.8 million in the same quarter last year Backlog: $793.7 million at quarter end, down 18.3% year on year Market Capitalization: $416.8 million Manitowoc's Q1 performance was shaped by ongoing global trade dynamics and shifting demand across key regions. Management attributed the quarter's results to tariff-related cost pressures, mixed demand trends in North America and Europe, and the continued growth of aftermarket sales. CEO Aaron Ravenscroft specifically highlighted the impact of new tariffs, stating the company is modeling $60 million in incremental costs this year, with plans to mitigate 80% to 90%. He also pointed to the successful integration of artificial intelligence into operational processes, which is expected to improve efficiency. Looking ahead, management's guidance is supported by a strong backlog and optimism regarding a recovery in the European tower crane business. Ravenscroft emphasized that the company's CRANES+50 strategy, which prioritizes aftermarket sales and customer service, is central to navigating current market uncertainties. The team expressed cautious optimism, noting that evolving tariff negotiations and macroeconomic factors will continue to influence demand patterns and pricing in the coming quarters. Management's remarks focused on the interplay between macroeconomic uncertainty, evolving trade policy, and Manitowoc's aftermarket-driven strategy. The quarter's performance deviated from expectations due to tariff-related costs, regional demand variability, and investments in product and market development. Tariff Impact and Mitigation: Management outlined $60 million in expected tariff costs for 2025, with mitigation plans including price increases, alternative sourcing, and cost-sharing with vendors. These actions are expected to offset most, but not all, of the incremental costs. Aftermarket Sales Growth: Non-new machine sales increased 11% year over year, driven by expanded field service coverage and a focus on rebuilt and used equipment. This supports the CRANES+50 strategy, which aims to reduce earnings volatility by growing less cyclical business lines. European Tower Crane Recovery: Orders for European tower cranes rose nearly 70% year over year, marking the third consecutive quarter of growth and indicating a potential market rebound. This trend is underpinned by historically low dealer inventory and increased infrastructure investment in Germany. Operational Efficiency Initiatives: Manitowoc integrated artificial intelligence into its improvement process, automating repetitive IT tasks to save an estimated 2,000 man hours and $400,000 in costs. Management views this as an important step in ongoing operational efficiency efforts. Market-Specific Demand Trends: While North American dealer orders increased, management remains cautious due to tariff uncertainty. In the Middle East and India, demand remains stable to strong, while Korean and Australian markets are in a holding pattern due to local political and currency factors. Management's outlook for the remainder of the year is shaped by external trade policy, regional economic conditions, and execution of the company's aftermarket growth strategy. Tariff Resolution and Pricing: The company's ability to mitigate ongoing and potential new tariffs will be key to maintaining margins. Management expects price increases and sourcing changes to offset most cost impacts, but notes the situation remains dynamic. Aftermarket Expansion: Continued investment in service capabilities, used equipment, and parts is expected to drive more stable revenue streams, reducing exposure to the cyclical nature of new crane sales. European Infrastructure Recovery: Anticipated infrastructure spending in Europe, particularly in Germany, could support further growth in tower crane demand, though timing and magnitude depend on government rollout and customer confidence. Jerry Revich (Goldman Sachs): Asked how much mitigation of tariff costs would come from pricing versus supply changes. Management replied that mitigations include price increases, vendor cost sharing, and alternative sourcing, but benefits depend on evolving currency and trade dynamics. Jerry Revich (Goldman Sachs): Inquired about the share of China-related tariffs in the $45 million estimate and underlying tariff assumptions. Management stated the figure includes both China tariffs and Section 232 steel and aluminum tariffs, and that the mix will depend on production and sourcing flexibility. Jerry Revich (Goldman Sachs): Sought detail on the drivers of increased European tower crane orders and whether current momentum matches prior cycle highs. Management said the recovery is broad-based, driven by low dealer inventory and utilization, but market levels are still well below historical peaks. Steven Fisher (UBS): Asked if higher steel and aluminum costs are included in the $45 million tariff impact. Management confirmed that raw material cost increases are factored into the estimate. Steven Fisher (UBS): Requested color on visibility for continued non-new machine sales growth. Management responded that growth is broad-based, driven by new locations, increased field service technicians, and expansion in used and rebuilt equipment offerings. Looking forward, the StockStory team will be monitoring (1) the evolution of global tariff negotiations and their impact on Manitowoc's cost structure and pricing, (2) sustained growth in aftermarket sales as the company expands its service and used equipment business, and (3) the pace of recovery in the European tower crane market, particularly as government infrastructure funding in Germany moves from announcement to implementation. Progress on operational efficiency initiatives and further adoption of AI tools may also influence future margin trends. Manitowoc currently trades at a forward P/E ratio of 15.8×. Should you load up, cash out, or stay put? Find out in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
10-04-2025
- Business
- Yahoo
Manitowoc (MTW): Buy, Sell, or Hold Post Q4 Earnings?
Although the S&P 500 is down 7.7% over the past six months, Manitowoc's stock price has fallen further to $7.98, losing shareholders 13.7% of their capital. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation. Is now the time to buy Manitowoc, or should you be careful about including it in your portfolio? Get the full stock story straight from our expert analysts, it's free. Despite the more favorable entry price, we don't have much confidence in Manitowoc. Here are three reasons why you should be careful with MTW and a stock we'd rather own. Contracted by the United States Navy during WWII, Manitowoc (NYSE:MTW) provides cranes and lifting equipment. Investors interested in Construction Machinery companies should track backlog in addition to reported revenue. This metric shows the value of outstanding orders that have not yet been executed or delivered, giving visibility into Manitowoc's future revenue streams. Manitowoc's backlog came in at $650.2 million in the latest quarter, and it averaged 9.6% year-on-year declines over the last two years. This performance was underwhelming and shows the company is not winning new orders. It also suggests there may be increasing competition or market saturation. We track the long-term change in earnings per share (EPS) because it highlights whether a company's growth is profitable. Sadly for Manitowoc, its EPS declined by 26.5% annually over the last five years while its revenue grew by 3.5%. This tells us the company became less profitable on a per-share basis as it expanded. If you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills. Manitowoc broke even from a free cash flow perspective over the last five years, giving the company limited opportunities to return capital to shareholders. We see the value of companies helping their customers, but in the case of Manitowoc, we're out. Following the recent decline, the stock trades at 10.3× forward price-to-earnings (or $7.98 per share). This valuation is reasonable, but the company's shaky fundamentals present too much downside risk. There are better stocks to buy right now. Let us point you toward a safe-and-steady industrials business benefiting from an upgrade cycle. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
06-04-2025
- Business
- Yahoo
1 Industrials Stock with Impressive Fundamentals and 2 to Think Twice About
Even if they go mostly unnoticed, industrial businesses are the backbone of our country. Still, their generally high capital requirements expose them to the ups and downs of economic cycles, and the market seems to be baking in a prolonged downturn as the industry has shed 18.6% over the past six months. This performance was worse than the S&P 500's 11% decline. Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. With that said, here is one industrials stock boasting a durable advantage and two we're passing on. Market Cap: $275.1 million Contracted by the United States Navy during WWII, Manitowoc (NYSE:MTW) provides cranes and lifting equipment. Why Should You Dump MTW? Backlog has dropped by 9.6% on average over the past two years, suggesting it's losing orders as competition picks up Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term Poor free cash flow margin of -0.2% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends At $7.70 per share, Manitowoc trades at 10x forward price-to-earnings. If you're considering MTW for your portfolio, see our FREE research report to learn more. Market Cap: $2.05 billion Operating under the trade name TrinityRail, Trinity (NYSE:TRN) is a provider of railcar products and services in North America. Why Are We Hesitant About TRN? Flat sales over the last five years suggest it must find different ways to grow during this cycle Cash-burning history makes us doubt the long-term viability of its business model Short cash runway increases the probability of a capital raise that dilutes existing shareholders Trinity is trading at $25.52 per share, or 15.2x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than TRN. Market Cap: $71.35 billion With low-pressure heating systems as the first product, Trane (NYSE:TT) designs, manufactures, and sells HVAC and refrigeration systems, the former to commercial and residential building customers and the latter to commercial truck manufacturers. Why Is TT a Good Business? Impressive 11.4% annual revenue growth over the last two years indicates it's winning market share this cycle Operating margin improvement of 5.3 percentage points over the last five years demonstrates its ability to scale efficiently Share buybacks catapulted its annual earnings per share growth to 23.6%, which outperformed its revenue gains over the last two years Trane Technologies's stock price of $316.70 implies a valuation ratio of 25x forward price-to-earnings. Is now the right time to buy? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
