Columbus McKinnon is a designer, manufacturer and marketer of material handling products, systems and services, which efficiently and ergonomically move, lift, position and secure materials. Key products include hoists, cranes, actuators and rigging tools. The company was founded in 1875 and is based in Amherst, New York.
CMCO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Columbus Mckinnon Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Columbus Mckinnon Corp ranked in the 76th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Columbus Mckinnon Corp ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 4.65; that's higher than 53.27% of US stocks in the Industrials sector that have positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 5.5 years, is 0.33% -- higher than 71.37% of stocks in our DCF forecasting set.
Columbus Mckinnon Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 16.64% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CMCO, try TAYD, PANL, USDP, GV, and MAN.
Here with me are David Wilson, our President and CEO; and Greg Rustowicz, our Chief Financial Officer. Technology has enabled me to actively interact with our team where I have not been able to travel and meet in person.