MTW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. MTW has a bad profitability rating. Also its financial health evaluation is rather negative. MTW has a expensive valuation and it also scores bad on growth.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

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

1.2 Ratios

MTW's Return On Assets of 2.99% is in line compared to the rest of the industry. MTW outperforms 46.97% of its industry peers.
The Return On Equity of MTW (8.33%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 3.47%, MTW is not doing good in the industry: 65.15% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for MTW 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.
MTW's Profit Margin has been stable in the last couple of years.
MTW has a Operating Margin of 2.44%. This is in the lower half of the industry: MTW underperforms 68.94% of its industry peers.
In the last couple of years the Operating Margin of MTW has declined.
With a Gross Margin value of 17.90%, MTW is not doing good in the industry: 76.52% of the companies in the same industry are doing better.
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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MTW is destroying value.
The number of shares outstanding for MTW remains at a similar level compared to 1 year ago.
MTW has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MTW has a worse debt to assets ratio.

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 worse Altman-Z score (2.01) than 65.15% of its industry peers.
MTW has a Debt/Equity ratio of 0.70. This is a neutral value indicating MTW is somewhat dependend on debt financing.
The Debt to Equity ratio of MTW (0.70) is worse than 67.42% of its industry peers.

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

ROIC/WACC0.31

WACC11.38%

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 comparable to the rest of the industry.
A Quick Ratio of 0.66 indicates that MTW may have some problems paying its short term obligations.
MTW's Quick ratio of 0.66 is on the low side compared to the rest of the industry. MTW is outperformed by 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.
Measured over the past years, MTW shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -26.49% on average per year.
Looking at the last year, MTW shows a decrease in Revenue. The Revenue has decreased by -0.83% in the last 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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 85.75 indicates a quite expensive valuation of MTW.
Based on the Price/Earnings ratio, MTW is valued a bit more expensive than 70.45% of the companies in the same industry.
MTW's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 17.15, the valuation of MTW can be described as rather expensive.
78.03% of the companies in the same industry are more expensive than MTW, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.32. MTW is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	85.75
Fwd PE	17.15

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MTW is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.