Wednesday, December 5, 2012

Manitowoc Remains Intriguing Though Not A Favorite

Manitowoc Company Inc. (MTW) closed out last week trading at the 6-month high levels of $15. While the market envisions the company as a crane manufacturer that competes with Terex Corporation (TEX), it currently obtains higher operating income from the food service division.

The company currently has a mark cap of $2B and only trades at 5x the trailing twelve months EBITDA of nearly $400M. With limited operating margins in the crane division, the company has yet to see any rebound from the global financial crisis.

The company faces similar margin issues as Terex in comparison to a mega-cap like Caterpillar (CAT). In the last few months, a shift is occurring as stocks focused more on construction equipment have performed better than ones with mining exposure.

Read the full article at Seeking Alpha.


Disclosure: Long MTW and TEX. Please review the disclaimer page for more details. 



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