Manitowoc Company, Inc. (MTW)

it's funny how many people will get upset that a company like this has a stock price trading where it is. I would think the proper thing to do, is smile ear-to-ear, and buy large quantities at an obscene price. This is a great company, that sold a great part of their business to pick up an even larger cash cow. when the dust settles, these guys will have solid returns, and a higher stock price.

I've been interested this stock/company for quite a while. The share price is currently $5.63 today matching its 52 week low. Its competitor, Terex (TEX) has also been pummeled to 52 week lows. Curiously, there has been a somewhat steady stream of Manitowoc Company "Insider" share purchases/acquisitions, since June 08, even in the face of an obviously deteriorating economy (see Morningstar's "Insider Activity" listings for MTW).

Although the stock may still fall further, it may be prudent to begin incrementally purchasing shares on a dollar-cost-averaging basis. Only history will show whether this is the right or wrong move. But even 100 shares at $563 seems like a pretty good bargain in comparison to its $51.49 per share price tag from a year ago and the fact that many quality companies are being unfairly punished in this current, bleak economic landscape.

Z-score of 1.12 for 2008 figures
normally means they have a better than 50/50 chance
of going bankrupt in the next 2 years.

Paying $2.7 billion for Enodis is partly to blame for low Z-score,
but it has also left them with $2.5 billion LT debt.

Their markets (cranes and food-service equipment) are both susceptible to a recession, so am expecting their sales & profits to be hard hit over the next 2 years or so.

Manitowoc has certainly put up some ugly numbers. But as long as the company can survive a protracted global recession, it will be in a good position to capitalize on increasing investment in infrastructure in emerging market nations. From the point of view of normalized 5 or 10 year earnings, this is very, very cheap.

The Manitowoc Company, Inc. is one of the world's largest providers of lifting equipment for the global construction industry, including lattice-boom cranes, tower cranes, mobile telescopic cranes, and boom trucks. As a leading manufacturer of ice-cube machines, ce/beverage dispensers, and commercial refrigeration equipment, the company offers the broadest line of cold-focused equipment in the foodservice industry. In addition, the company is a leading provider of shipbuilding, ship repair, and conversion services for government, military, and commercial customers throughout the U.S. maritime industry. Strong fundamentals, EPS Growth 5yrs 45.3, Cash Flow Growth 5 yrs 54.1. Will swing between $35-45 over the next two to four months

Although Manitowic makes marine equipment and food services equipment, Manitowic is predominantly a crane manufacturer with few competitors. Their primary competitor is Terex (TEX) is not as large as Manitowic and has secondary businesses in earth-moving equipment like Caterpillar (CAT). Given the guidance that CAT given, I'm trying to avoid the earthmover business with the residential construction slump.

Manitowic's earnings are going to insulated from the residential housing downturn because crane and lift equipment is primarily used in commercial construction (23%), industrial (21%), infrastructure (13%), power plants(12%), and utilities(6%). Residential construction is only 23% of their revenues. Considering that only N. American construction is problematic and the other industries are high growth. Additionally, high-rise construction for residential building are primarily focused in high density areas such as New York City which does not suffer from sub-prime housing blowup that the rest of the country is in. Moreover, nonresidential construction has been up 9% so far in N. America in 2007. The government is expected to spend an additional $284 in infrastructure construction over the next six years.

In addition, a large number of cranes require replacement with 15,000 of cranes being older than 25 years. There is a shortage of cranes worldwide with out cranes being rented and needing to be replaced. There are large order lags in cranes from 2 months to 8 months. Additionally, used cranes are selling for 90% of market value and new cranes take up to two years to manufacture. As a result, Manitowic has a considerable backlog of business to fill and further demand should give them pricing power to maintain/expand their gross margins both from their crane rental and manufacturing business.

Additionally, Manitowic gets 60% of their revenues overseas. It is the only Western company to have a crane factory and presence in China. The emerging market global growth story is strong. In additon, a weak US dollar throughout Q3 means that there is significant boost to earnings from changes in the foreign exchange rate.

Fundamentally, the company trades at PE 23.76, Forward PE 14.02, PEG ratio of 0.85. These are excellent numbers for a company that is growing at revenues at 36% year of year and quarterly earnings at 131%.

Analyst are beginning to upgrade the stock and institutional ownership is increasing.

However, there are some risks. Steel prices are increasing which is the primary materials cost of these goods. In addition, while MTW has few global competitors there local niche players which may erode market share, particularly on the lower end of the market.

I know this company well and they have a strong order book, which won't evaporate, solid, proactive management and a balanced revenue stream with the foodservice business. The large crane sector will sustain the crane business until the smaller construction segment improves.

According to a website I am investigating this Company is growing earnings at a good clip while avoiding excessive leverage. I like that idea and want to find out if that site is worth paying attention to.

Outperform to underperform at 114 to 1? This company may be good, but is it *that* good.

Well, I'll go out on a limb here and double the underperform call count on this CAPS superstar.

Overall, worldwide demand for big buildings is up, and those buildings need big cranes. Manitowac is one of the leading providers of cranes, and that demand should remain strong for some time.

Infrastructure projects via the next federal stimulus package. Really, really cheap stock price for this great crane company, not to mention its other divisions.

Just finished some extensive research on MTW, as I am considering adding it to my real-life portfolio. This company is a sure fire outperformer over the next few years. I love they way they've expanded their overseas business this decade (Percentage of sales from Europe/Middle East/Africa has grown from 3% in 2000 to 35% in 2006). They also opened a new crane plant in China in 2006 that is 3 times the size of the previous plant there. Throughout this foreign expansion, they've kept a remarkable overall growth trend throughout each sector of the company, with EBITDA increasing by 174% since 2001. MTW also recorded a 12th straight year of positive revenue growth, with an increase of over 30% in 2006. I wish they were a little more diversified, seeing as 76% of their revenue comes from the Crane Group, but I don't forsee the market for cranes slipping anytime in the future, especially in Europe and Asia. Cranes aside, the Marine Group posted 25% revenue growth in 2006. The Foodservice Group slacked behind a little bit in 2006, with revenue increasing by only 4%, but seeing as how only 14% of their revenue comes from there, it doesn't bother me one bit.

Great P/E, fundamentals are sound. Stock hurt, incorrectly, by recent meltdown. Great price to get in n now and keep for the next 3 years, but will start to correct over the next year as the market sees its mistake.

It seems likely that, in the future, people will build things.

With a PEG of 0.28, Manitowoc is really cheap and it is also a great company Manitowoc has business in the crane, ship building, and cold food service industries. Right now, Manitowoc's crane business represents about 80% of their revenue. While the ship building and cold food service parts of the business, only represent roughly 20% combined. Manitowoc is currently in a bidding war for Enodis, with Illinois Tool Works. Enodis manufactures hot food service equipment. One Enodis' big customers is McDonald's. McDonald's recently choose one of Enodis' fryers for their restaurants. Enodis has about half the market cap of Manitowoc, and will be a great asset to Manitowoc. Due to the fact that 80% of Manitowoc's revenues are in the crane business, it leaves Manitowoc open to being very cyclical with their earnings. If they acquire Enodis, their revenues will be a lot less open to crane volatility. If they acquire Enodis, food service will increase to aboue 35% of Manitowoc's revenue. Manitowoc is a great buy at such a low price.

MTW is continually expanding its presence in Asia (esp. China), where modernization trends are pushing forward many massive public works projects. It's pretty difficult to build dams, bridges, etc. without cranes and boom trucks.

Great backlog and just launched their first and latest shallow water destroyer. There may be as many as 70 of these built over the next few years. Only concern is getting a Democrat as President, which will be a good thing for our Country but maybe bad for defense spending.

This "best-of-breed" (machinery and mining) manufacturer of cranes is in the beginning stages of the ROW construction cycle. We only get a few chances in a lifetime to see a company positioned this well to seize opportunities from worldwide growth.

Cheap.