Taking everything into account, MTW scores 3 out of 10 in our fundamental rating. MTW was compared to 132 industry peers in the Machinery industry. Both the profitability and financial health of MTW have multiple concerns. MTW does not seem to be growing, but still is valued expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year MTW was profitable.
In the past year MTW had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: MTW reported negative net income in multiple years.
MTW had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 2.99%, MTW is in line with its industry, outperforming 46.97% of the companies in the same industry.
MTW has a Return On Equity (8.33%) which is in line with its industry peers.
MTW's Return On Invested Capital of 3.47% is on the low side compared to the rest of the industry. MTW is outperformed by 65.15% of its industry peers.
MTW had an Average Return On Invested Capital over the past 3 years of 6.03%. This is below the industry average of 10.24%.

		Industry Rank	Sector Rank
ROA	2.99%
ROE	8.33%
ROIC	3.47%

ROA(3y)-0.66%

ROA(5y)-0.51%

ROE(3y)-2.59%

ROE(5y)-1.82%

ROIC(3y)6.03%

ROIC(5y)5.29%

1.3 Margins

Looking at the Profit Margin, with a value of 2.63%, MTW is in line with its industry, outperforming 40.91% of the companies in the same industry.
In the last couple of years the Profit Margin of MTW has remained more or less at the same level.
The Operating Margin of MTW (2.44%) is worse than 68.94% of its industry peers.
MTW's Operating Margin has declined in the last couple of years.
MTW's Gross Margin of 17.90% is on the low side compared to the rest of the industry. MTW is outperformed by 76.52% of its industry peers.
MTW's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	2.44%
PM (TTM)	2.63%
GM	17.9%

OM growth 3Y-13.61%

OM growth 5Y-16.67%

PM growth 3Y58.83%

PM growth 5Y0.17%

GM growth 3Y-1.21%

GM growth 5Y-1.7%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MTW is destroying value.
MTW has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, MTW has less shares outstanding
MTW has a worse debt/assets ratio than last year.

2.2 Solvency

MTW has an Altman-Z score of 2.01. This is not the best score and indicates that MTW is in the grey zone with still only limited risk for bankruptcy at the moment.
MTW has a Altman-Z score of 2.01. This is in the lower half of the industry: MTW underperforms 65.15% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that MTW is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.70, MTW is doing worse than 67.42% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.7
Debt/FCF	N/A
Altman-Z	2.01

ROIC/WACC0.3

WACC11.39%

2.3 Liquidity

MTW has a Current Ratio of 2.14. This indicates that MTW is financially healthy and has no problem in meeting its short term obligations.
MTW has a Current ratio (2.14) which is in line with its industry peers.
MTW has a Quick Ratio of 2.14. This is a bad value and indicates that MTW is not financially healthy enough and could expect problems in meeting its short term obligations.
MTW has a Quick ratio of 0.66. This is amonst the worse of the industry: MTW underperforms 84.85% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.14
Quick Ratio	0.66

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for MTW have decreased strongly by -60.00% in the last year.
MTW shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -26.49% yearly.
The Revenue has decreased by -0.83% in the past year.
MTW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.50% yearly.

EPS 1Y (TTM)-60%

EPS 3Y-22.18%

EPS 5Y-26.49%

EPS Q2Q%275%

Revenue 1Y (TTM)-0.83%

Revenue growth 3Y8.18%

Revenue growth 5Y3.5%

Sales Q2Q%5.45%

3.2 Future

Based on estimates for the next years, MTW will show a very strong growth in Earnings Per Share. The EPS will grow by 33.23% on average per year.
MTW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.74% yearly.

EPS Next Y-19.2%

EPS Next 2Y39.68%

EPS Next 3Y33.23%

EPS Next 5YN/A

Revenue Next Year-0.73%

Revenue Next 2Y2.65%

Revenue Next 3Y2.74%

Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 84.50, which means the current valuation is very expensive for MTW.
Compared to the rest of the industry, the Price/Earnings ratio of MTW indicates a slightly more expensive valuation: MTW is more expensive than 70.45% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MTW to the average of the S&P500 Index (27.21), we can say MTW is valued expensively.
MTW is valuated correctly with a Price/Forward Earnings ratio of 16.90.
Based on the Price/Forward Earnings ratio, MTW is valued a bit cheaper than the industry average as 78.03% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.26. MTW is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	84.5
Fwd PE	16.9

4.2 Price Multiples

MTW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MTW is cheaper than 91.67% of the companies in the same industry.