The Manitowoc Company, Inc. has reported its financial results for the fourth quarter of 2023 and provided guidance for the full year of 2024. According to the press release, the company achieved net sales of $595.8 million in the fourth quarter of 2023, with adjusted EBITDA of $36.5 million, representing a margin percentage of 6.1%. For the full year of 2023, net sales totaled $2,227.8 million, and adjusted EBITDA reached $175.3 million with a margin percentage of 7.9%.
Aaron H. Ravenscroft, President and Chief Executive Officer of The Manitowoc Company, Inc., expressed satisfaction with the company's performance in 2023, highlighting the delivery of strong financial results and the execution of the "cranes+50" strategy. He noted a 22.5% year-over-year increase in adjusted EBITDA and a 12.4% growth in non-new machine sales. Ravenscroft also provided the company's outlook for 2024, stating, "We enter 2024 with a strong backlog and expect global demand for mobile cranes to remain strong."
The company's guidance for the full year of 2024 includes net sales in the range of $2.275 billion to $2.375 billion, adjusted EBITDA between $150 million and $180 million, and adjusted diluted earnings per share of $0.95 to $1.55.
It was also noted that the company's shares have experienced an -11.2% movement and are currently trading at a price of $14.6.
The Manitowoc Company will be hosting a conference call for security analysts and institutional investors on February 15, 2024, to discuss its fourth-quarter and full-year 2023 earnings results.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $1,847 | $1,834 | $1,443 | $1,720 | $2,032 | $2,254 |
| Gross Margins | 18% | 19% | 18% | 18% | 18% | 20% |
| Net Margins | -4% | 3% | -1% | 1% | -6% | -4% |
| Net Income (M) | -$67 | $47 | -$19 | $11 | -$124 | -$97 |
| Net Interest Expense (M) | $39 | -$49 | -$41 | -$29 | -$27 | -$40 |
| Depreciation & Amort. (M) | $36 | $35 | $37 | $46 | $61 | $56 |
| Diluted Shares (M) | 36 | 36 | 35 | 35 | 35 | 36 |
| Earnings Per Share | -$1.89 | $1.31 | -$0.55 | $0.31 | -$3.51 | -$2.71 |
| EPS Growth | n/a | 169.31% | -141.98% | 156.36% | -1232.26% | 22.79% |
| Avg. Price | $25.9 | $15.72 | $10.77 | $20.98 | $14.71 | $14.275 |
| P/E Ratio | -13.63 | 12.0 | -19.94 | 65.56 | -4.17 | -5.17 |
| Free Cash Flow (M) | -$545 | -$88 | -$61 | $36 | $15 | $9 |
| EV / EBITDA | 62.4 | 4.69 | 7.43 | 11.49 | -25.83 | 373.76 |
| Total Debt (M) | $273 | $312 | $311 | $407 | $386 | $399 |
| Net Debt / EBITDA | 7.9 | 0.79 | 2.4 | 3.61 | -9.91 | 156.0 |
| Current Ratio | 1.7 | 1.98 | 1.99 | 1.81 | 1.82 | 1.79 |
Based on the analysis, the stock of Manitowoc Company is likely fairly valued at a price of $14.6 per share due to its steady revenue growth and increasing capital expenditures, but also its lower operating margins, thinner gross margins, and declining earnings per share over the last 6 years.
The company's revenues are rapidly growing at a rate of 4.1%, and its capital expenditures are increasing at a rate of 22.3%. However, the operating margins have averaged out to 0.7% over the last 6 years, significantly lower than the industry average, and the 20% gross margins are thinner than the industry average, implying a lack of competitivity. Additionally, the earnings per share have declined with an annualized growth rate of -6.2%.
In terms of value factors, Manitowoc Company has a highly leveraged balance sheet with a current Net Debt / EBITDA ratio of 156.0, consistently negative free cash flows, and current assets disproportionately represented by inventories. These factors present potential risks for investors to consider.
Please note that this analysis is not personalized financial advice and should be considered as part of a broader investment strategy.
