Manitowoc Co. Inc. (NYSE: MTW).
The Company
is a diversified industrial manufacturer of three principal market products: Cranes and
Related Products (Crane); Foodservice Equipment (Foodservice) and Marine. The
Crane business designs, manufactures and markets a line of crawler cranes,
mobile telescopic cranes, tower cranes, and boom trucks. The Crane products are
marketed under the Manitowoc, Grove, Potain, National, and CraneCare brand names
and are used in a wide variety of applications, including energy, petrochemical
and industrial projects, infrastructure development such as road, bridge and
airport construction, commercial and high-rise residential construction, mining
and dredging.
The Foodservice business designs, manufactures and markets ice making machines,
walk-in and reach-in refrigerators and freezers, fountain beverage delivery
systems and other foodservice refrigeration products for the lodging,
restaurant, healthcare, convenience store, soft-drink bottling, and
institutional foodservice markets. The Foodservice products are marketed under
the Manitowoc, SerVend, Multiplex, Kolpak, Harford-Duracool, McCall, Koolaire,
Flomatic, Icetronic, Kyees, RDI, and other brand names.
The Marine business provides new construction, ship repair and maintenance
services for freshwater and saltwater vessels from four shipyards on the U.S.
Great Lakes. The Marine segment is also a provider of Great Lakes and oceangoing
mid-sized commercial, research and military vessels. The Marine segment serves
the Great Lakes maritime market consisting of both U.S. and Canadian fleets,
inland waterway operations, and ocean going vessels that transit the Great Lakes
and St. Lawrence Seaways.
Manitowoc's
revenues rose 22% to $2.25B for the fiscal year ended 31 December 2005. Net income
from continuing operations rose 55%% to $59.1M. The
Stock's price gained 67.8% over the past 3 months; 103.7% over the past
6 months; and 165.2% over the past 12 months.
Manitowoc is classified as a mid-cap value company. The Stock is rated to
significantly outperform the market over the next six months. The Company was
founded in 1902 and has its corporate offices in
Manitowoc, Wisconsin. The Company has
approximately 8,000 employees.
Sector: Capital Goods; Industry: Construction &
Agricultural Machinery; Ticker:MTW; Exch:
NYSE;
04/17/06 Closing Price: $47.01)
STOCK GRADE (ASG: 43.90)
BUSINESS & FINANCIAL SUMMARY
(Yahoo)
EXPANDED BUSINESS DESCRIPTION
(Reuters)
STOCK INFO/RESEARCH
(MSN)
OWNERSHIP
(MSN)
KEY DEVELOPMENTS
(MSN),
RECENT NEWS
(MSN) &
HEADLINES (Yahoo)
HISTORICAL PRICES (Yahoo)
&
PRICE CHART
(IQChart)
COMPANY'S WEB SITE
STOCK'S CORE
STRENGTHS (SEE: Table Below)
| Management's Effectiveness (12 Mo.) | . . . | Return on Equity: | 11.29% |
| Profitability (12 Mo.) | . . . | Profit Margin: | 2.62% |
| Stock's Growth Record (12 Mo.) | . . . | Revenue: | 22.18% |
| . . . | EPS: | 38.03% | |
| . . . | Price: | 148.42% | |
| . . . | Dividend: | 0.00% | |
| PE & EPS (12 Mo.) | . . . | Price/Earnings: | 48.37 |
| . . . | Earnings/Share: | 0.96 | |
| Price / Share (Closing) | . . . | 04/17/2006: | $47.01 |
MANITOWOC CO. INC. -
EVALUATION
Manitowoc's
stock emerged as an ACE'S selection based on the evaluation results of the
criteria listed below. The evaluation results are encapsulated as one value in
ASG (short for ACE'S Stock Grade). ASG
is proprietary variable that was devised by ACE'S to measure the
quality of a stock for investment. Manitowoc's ASG value of 43.90 is
GOOD.
A. MANAGEMENTS EFFECTIVENESS - POOR
B. PRODUCTS & SERVICES, SET OF - EXCELLENT
C. SALES - GOOD
D. CASH FLOW, FREE -
GOOD
E. PROFITABILITY - AVERAGE
F. PRICE-EARNINGS RATIO (P/E) - POOR
G.
FINANCIAL HEALTH -
GOOD
H.
MARKET CAPITALIZATION - EXCELLENT
I.
TRADED VOLUME -
GOOD
J.
PRICE GROWTH - EXCELLENT
A. MANAGEMENTS EFFECTIVENESS - POOR
How well a company performs
generally - in its
business operations, controlling costs, the success of its products and
services in the market place, profitability, and the like - depends on its
management's efficiency. Return on Equity ( ROE) is used by ACE'S as a general indication
of the company's efficiency.
Manitowoc's ROE (ttm) of 12.1% is lower (by 69.42% and
33.06%
correspondingly) than the Industry's ROE of 20.5% and the S&P 500's ROE of 16.1%.
(Ref.:
MSN Finance\Key Ratios).
ACE'S gives a preferential rating to a company that has a
comparable or relatively higher ROE than the Industry. ACE'S rating of
Manitowoc's Management's Effectiveness: POOR.
^ Back to Evaluation
B. PRODUCTS & SERVICES, SET OF -
EXCELLENT
Products and services are the elements that enables a company to have a presence
in its target market and generate sales. The set of products and services that a company has and how successful those products and services performs in the
target market are very important factors in considering a company's stock for
investment.
Manitowoc's line-up of products and services: Cranes and
Related Products; Foodservice Equipment and Marine Services
Lattice-boom cranes, tower cranes, top slewing tower cranes, luffing jib
tower cranes, topless tower cranes, self-erecting tower cranes, mobile
telescopic cranes, rough terrain cranes, all-terrain cranes, truck mounted
cranes, industrial cranes, and boom trucks. Three main brands carried;
-
Grove cranes
-
National cranes
-. Potain cranes
Commercial ice cube machines; ice flaker machines; storage bins; walk-in
refrigerators and freezers; reach-in refrigerators and freezers; beverage dispensers.
- Beverage equipment. Ice & beverage dispensing equipments. Three main
brands carried: Servend,
Multiplex and Manitowoc Beverage Systems, Inc. (MBS) is a systems integrator with
nationwide
distribution of beverage dispensing and backroom equipment and support system
components. MBS serves the needs of major beverage and bottler customers,
restaurants, convenience stores and other outlets.
- Ice machines.
- Refrigeration systems. Three (3) main brands carried:
Kolpac, McCall and Harford.
McCall is a full
line of Reach-in and Undercounter refrigeration equipment for the foodservice
industry. Harford
are walk-in coolers and freezers and refrigeration systems for the foodservice
industry.
MARINE SERVICES
Provides construction, conversion, maintenance, and ship repair service for the
Great Lakes maritime industries. Services provided: floating drydock and graving
dock facilities, voyage repairs, mechanical & electricl repairs, hull &
propulsion repairs, boiler & turbine repairs, survey & inspection services,
fabrication & installation of self-unloading equipment, repower, retrofit &
conversion services, design & engineering; and complete outfitting. Operates
four shipyards located in Marinette, Wisconsin; Sturgeon Bay, Wisconsin; Toledo,
Ohio; and Cleveland, Ohio.
ACE'S
gives a preferential rating to a company who have
a variety of product
and services that have present and continued utility in a broad and
dynamic market.
An estimation of the latter products' utility, distinctive qualities and competitiveness would be subjective assessments.
However, there is one objective data that indicates how well the subjective
elements of Manitowoc's products and services
are assessed and used by its target market - the company's
sales.
ACE'S rating of
Manitowoc's line-up of Products & Services: EXCELLENT
^ Back to Evaluation
C. SALES - GOOD
Sales is an important indicator on how a company's products and services
performs in its target market. Generally, a high sales figure is preferred than a lower figure.
Also, a steady and appreciable growth in a company's total sales from one year to the next is a key indicator on how a
company is able (or unable) to sustain and improve the utility of its products and services in the marketplace.
Manitowoc's annual sales was $1,116.6M in 12/2001, $1,406.6M in 12/2002, $1,593.2M in 12/2003,
$1,964.1M in 12/2004 and $2,254.1M in 12/2005. Relative to 12/2001, the
Company's sales increased 25.97% in 2002, 42.68% in2003, 75.90% in 2004 and
101.87% in 2005,
(Ref.:
MSN Money\Financials).
Manitowoc's ttm annual sales of $2,254.1M was 104.94% less than the Industry's
sales of $4,619.5M.
Manitowoc's ttm Sales growth rate of14.80% was 2.6% points higher than the
Industry's rate of 12.20%.
(Ref.:
MSN Money\Research).
ACE'S gives a preferential rating to a company that have demonstrated the ability to
sustain a high and progressively increasing level of sales from year-to-year. Manitowoc's
year-to-year annual sales - from 2001 to 2005 - have progressively increased. In terms of sales
volume, the Companies past 12 month sales is 104.94% less than the Industry.
In terms of growth rate,
Manitowoc's rate surpasses the Industry by 2.6% points. ACE'S rating of
Manitowoc's Sales Growth Rate: GOOD.
^ Back to Evaluation
D. CASH FLOW, FREE -
GOOD
Cash flow is crucial to the operation and survival of companies. A company
having ample ready cash ensures that creditors, employees, and others can be
paid on time.
Cash flow could be considered as a better measure of a business's profitability
than earnings, because a company can show positive net earnings and have insufficient cash flow (that is, the company
is not able to pay its debts). Cash Flow
thus can be used as an indicator of a company's financial strength.
Manitowoc's cash flow during the past 4 years: $106.6M in 12/2001;
$94.5M in 12/2002; $150.9M in 12/2003; $57.0M in 12/2004; and $106.7M in
12/2005.
(Ref.:
MSN Money\Financials).
ACE'S
gives a preferential rating to a company that have demonstrated the ability to
sustain a positive and appreciable cash flow from year-to-year. Manitowoc's
year-to-year cash flow - from 2001 to 2005 - have been positive and appreciable,
averaging $103.14M annually. ACE'S rating of
Manitowoc's Cash Flow: GOOD.
^ Back to Evaluation
E. PROFITABILITY - AVERAGE
Making a profit is the ultimate goal of every company. A useful gauge of a
company's profitability is its net income (also referred to as "earnings"). Related to a company's outstanding shares of common stocks, the company's total earnings is transformed
to "earnings per share" (or "EPS" for short). EPS is a very popular indicator of a company's profitability and a
powerful variable that influences the price of a company's stock.
Manitowoc's annual Net Income, for the past 12 months, of $361.8M is
26.39% less than the
Industry's Income of $491.5M). For the past 5 years, Manitowoc's annual Net Income are:
$45.6M
in 12/2001; -$20.5M in 12/2002; $3.5M in 12/2003; $39.1M in 12/2004; and $65.8M in
12/2005. In terms of growth, Manitowoc's Net Income have grown
73.50%
during the past 12 months (vs. the Industry's 45.20% growth rate).
(Refs.
MSN Money\Financials\Statements;
MSN Money\Wizard)
ACE'S gives a preferential rating to a company that have demonstrated the ability to
sustain a positive, appreciable and increasing net income..Manitowoc's
year-to-year annual Net Income was on the plus side in2001 and was -$20.5M in 2002
(a -143.64% change). In 2003, net income
rebounded to the plus side. Relative to 2003, Net Income gained 1017.14% in
2004; and 1,780% in 2005. In terms of
income growth rate,
Manitowoc's 73.50% rate surpasses the Industry by 28.30% points.
In terms of the 5-year period 2001 - 2005,
Manitowoc's average annual net income
was +$26.7M. ACE'S rating of
Manitowocs Profitability: AVERAGE.
F. PRICE-EARNINGS RATIO (P/E) - POOR
A stock's Price-Earnings ratio tells us roughly how much investors are willing
to pay per dollar of earnings. Price-Earnings
is a ratio of a company's current share price compared to its per-share
earnings. The P/E ratio is a much better indicator
of the value of a stock than the market price alone.
In general, a high P/E means high projected earnings in the future. As such, the
P/E ratio could be interpreted as the reflection of the market's optimism concerning a firm's growth prospects. To
determine whether a particular P/E is high
or low, take into account a company's growth rates; and the P/Es of other
companies in the same industry. Historically,
the average P/E ratio in the market has been around 15-25.
Manitowoc has a P/E ratio of 48.14 (ttm) which is
20.8%
points higher - or 76% greater -
than the
Industry's P/E of 27.34 (ttm).
(Ref.: Yahoo! Finance\Competitors)
ACE'S gives a preferential rating to a company that has a
comparable or relatively lower P/E than the Industry. ACE'S rating of
Manitowoc's P/E Ratio: POOR (76% MORE THAN INDUSTRY'S AVERAGE)
^ Back to Evaluation
G. FINANCIAL HEALTH - GOOD
The assumption of debt, i.e., financial leverage, are used by companies to
finance its assets. The magnitude of the debt's expense component affects the company's net income.
A company with significantly more debt than equity is considered to be highly
leveraged. A popular measure of financial
leverage is the "debt/equity ratio". A higher debt/equity
ratio generally means that a company has been aggressive in financing its growth
with debt. This higher ratio can result
in volatile or negative earnings as a result of the additional interest expense.
Thus, the Debt/Equity Ratio is popularly used
as a measure of a company's financial health.
Manitowoc's 0.87 Debt/Equity Ratio (latest 12 months) is 23.68% less than
the Industry's Ratio of
1.14, and 16.35% less than the S&P 500's Ratio 1.04. Manitowoc has a
GOOD debt ratio.
ACE'S gives a preferential rating to a company that has a
comparable or relatively lower debt ratio than the Industry. ACE'S rating of
Manitowoc's
Debt Ratio: GOOD (LOWER RATIO THAN INDUSTRY AVERAGE).^ Back to Evaluation
H. MARKET CAPITALIZATION - EXCELLENT
Market Capitalization (or market cap for short) is a measure of a company's
size. The market cap provides a broad gauge
of the growth-versus-risk potential of a company. Historically, large caps have
experienced slower growth with lower
risk; whereas small caps have experienced higher growth potential, but with
higher risk.
The market cap of a company is calculated by multiplying the number of its
outstanding shares by the shares' current market price. There are presently six classes of Market Cap: Mega Cap, Big/Large
Cap, Mid Cap, Small Cap, Micro Cap and Nano Cap. ACE'S assigns an
Excellent rating to Small Cap stocks; Good to Mid Caps; Average to Big/Large
Caps; and Below Average to Mega Caps. ACE'S excludes Micro
and Nano Caps in its stock picks.
Manitowoc is classified as a mid cap value company with a market
capitalization of $2,822.9M and with outstanding shares of 60.80
ACE'S gives a preferential rating to small and mid cap companies. ACE'S rating of
Manitowoc's
Market Cap: EXCELLENT.^ Back to Evaluation
I. TRADED VOLUME -
GOOD
A stock's price goes up or down based on the laws of supply and demand. Simply
stated, when a stock's price goes up, there must be significant buying demand
for the stock. Volume is the actual number of shares traded daily. Traded volume
could be used as a gauge of the demand for a stock.
Manitowoc has an 3-month Average Daily Volume of 852,027 shares; and
a 10-day Average Daily Volume of 648,550 shares.
(Refs.:
Yahoo! Finance\Statistics).
ACE'S assigns an Excellent rating for
+1,000,000 trading volumes; Good for 500,001-999,999 volumes; Average for
100,000 - 500,000 volumes; and Below Average for -100,000 volumes.
ACE'S gives a preferential rating to a company that sustains a
lively trade volume from week-to-week and month-to-month. ACE'S rating of
Manitowoc's Traded
Volume: GOOD.
J. PRICE GROWTH - EXCELLENT
Price growth is the 12-month increase in the price of a
stock (displayed as a percentage). As of 04/17/06, Manitowoc had a 3-month growth
rate of 67.8% (vs. the Industry's 24.6% rate), a 6-month rate of 103.7% (vs.
the Industry's 50.5% rate), and a 12-month rate of 165.2% (vs. the
Industry's 61.3% rate).
(Refs.:
MSN Money\Research). ACE'S gives a preferential rating to a company that have
demonstrated a solid capacity for high price growth and outperforming other
stocks in the Industry. ACE'S rating of
Manitowoc's
Price Growth: EXCELLENT.