Investment Thesis
Manitowoc is financially distressed with negative profitability (-1.2% net margin), near-zero operating margins (0.6%), and critical debt coverage issues (0.2x interest coverage indicating inability to cover interest from operations). Revenue stagnation combined with operating losses and sharply declining EPS (-87.2% YoY) signal deteriorating business fundamentals despite modest positive cash flow.
Strengths
- Positive operating cash flow of $27.4M providing liquidity buffer
- Positive free cash flow of $19.2M indicating some cash generation ability
- Current ratio of 2.10x suggests adequate short-term liquidity for near-term obligations
- Moderate debt-to-equity ratio of 0.64x is not excessively leveraged relative to equity base
Risks
- Negative net income of -$6.0M with deteriorating EPS (-87.2% YoY) indicates worsening profitability
- Interest coverage ratio of 0.2x is critically low - operating income cannot service debt obligations
- Flat revenue growth (0.0% YoY) with no organic growth momentum in recovering economy
- Quick ratio of 0.72x falls below 1.0x indicating potential working capital stress
- Operating margin of 0.6% leaves no margin for error; vulnerable to any revenue decline
Key Metrics to Watch
- Interest coverage ratio trend - must improve above 1.0x to be sustainable
- Operating margin expansion - need 5%+ to achieve profitability at current revenue levels
- Revenue growth acceleration - need positive growth to leverage fixed cost base
- Free cash flow sustainability - monitor if operations continue generating positive FCF
- Debt reduction progress - critical to improve financial flexibility
Financial Metrics
Revenue
494.6M
Net Income
-6.0M
EPS (Diluted)
$-0.17
Free Cash Flow
19.2M
Total Assets
1.8B
Cash
78.4M
Profitability Ratios
Gross Margin
19.3%
Operating Margin
0.6%
Net Margin
-1.2%
ROE
-0.9%
ROA
-0.3%
FCF Margin
3.9%
Balance Sheet & Liquidity
Current Ratio
2.10x
Quick Ratio
0.72x
Debt/Equity
0.64x
Debt/Assets
0.0%
Interest Coverage
0.17x
Long-term Debt
436.6M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-07T09:53:58.783171 |
Data as of: 2026-03-31 |
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