We assign a fundamental rating of 3 out of 10 to MTW. MTW was compared to 132 industry peers in the Machinery industry. MTW may be in some trouble as it scores bad on both profitability and health. 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.
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.
Of the past 5 years MTW 4 years had a positive operating cash flow.

1.2 Ratios

The Return On Assets of MTW (2.99%) is comparable to the rest of the industry.
The Return On Equity of MTW (8.33%) is comparable to the rest of the industry.
MTW has a worse Return On Invested Capital (3.47%) than 65.15% of its industry peers.
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

MTW has a Profit Margin of 2.63%. This is comparable to the rest of the industry: MTW outperforms 40.91% of its industry peers.
MTW's Profit Margin has been stable in the last couple of years.
MTW's Operating Margin of 2.44% is on the low side compared to the rest of the industry. MTW is outperformed by 68.94% of its industry peers.
In the last couple of years the Operating Margin of MTW has declined.
The Gross Margin of MTW (17.90%) is worse than 76.52% of its industry peers.
In the last couple of years the Gross Margin of MTW has declined.

		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.
MTW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MTW is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 1.99 indicates that MTW is not a great score, but indicates only limited risk for bankruptcy at the moment.
MTW's Altman-Z score of 1.99 is on the low side compared to the rest of the industry. MTW is outperformed by 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.
MTW has a worse Debt to Equity ratio (0.70) than 68.18% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.7
Debt/FCF	N/A
Altman-Z	1.99

ROIC/WACC0.31

WACC11.31%

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 of 2.14. This is comparable to the rest of the industry: MTW outperforms 55.30% of 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 worse Quick ratio (0.66) than 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.
The earnings per share for MTW have been decreasing by -26.49% on average. This is quite bad
Looking at the last year, MTW shows a decrease in Revenue. The Revenue has decreased by -0.83% in the last year.
Measured over the past years, MTW shows a small growth in Revenue. The Revenue has been growing by 3.50% on average per year.

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.
Based on estimates for the next years, MTW will show a small growth in Revenue. The Revenue will grow by 2.74% on average per year.

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

Based on the Price/Earnings ratio of 79.38, the valuation of MTW can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MTW indicates a slightly more expensive valuation: MTW is more expensive than 69.70% of the companies listed in the same industry.
MTW is valuated expensively when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.88 indicates a correct valuation of MTW.
MTW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MTW is cheaper than 79.55% of the companies in the same industry.
MTW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.

		Industry Rank	Sector Rank
PE	79.38
Fwd PE	15.88

4.2 Price Multiples

MTW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MTW is cheaper than 92.42% of the companies in the same industry.