TEX - Manitex International Has Been Executing On Self-Improvement But Macro Challenges Remain
2024-06-08 23:45:55 ET
Summary
- Manitex has been executing its self-improvement plans and has shown progress in rebranding and building its core lifting businesses.
- The company's revenue rose 8% in Q1 2024, with growth in both the Lifting business and Rental operations, and adjusted EBITDA margins are back in the double-digits.
- The macro environment poses some challenges, especially in construction, but infrastructure, energy, and utility markets are supportive and self-improvement may have further room to run.
- Mid-single digit revenue growth, low-double digit adjusted EBITDA margins, and mid-single digit free cash flow margins can support a fair value in the $7 range.
I’m fond of an old Japanese saying that goes, “vision without action is a daydream,” and there are many companies that try to sell credulous investors on turnaround and self-improvement visions only to deliver delays, disappointments, and excuses....
Manitex International Has Been Executing On Self-Improvement, But Macro Challenges Remain