Columbus McKinnon's Transformation Still Not Fully Reflected In The Shares

Change takes time, but Columbus McKinnon (NASDAQ:CMCO) has made it clear that they’re serious about transforming into a higher-value-added provider of automation-enabling machinery and generating stronger margins in the process. Multiple M&A transactions have augmented the company’s product lineup, while the newest iteration of the company’s Blueprint for Growth strategy continues to offer avenues to margin improvement.

When I wrote about Columbus last summer, I said I saw a window of opportunity in the shares. That window has stayed propped open longer than I expected, though the shares have kept pace with the wider industrial sector while slightly underperforming the S&P over that time. With mid-single-digit long-term revenue growth potential, improving margins, and the possibility of double-digit ROIC in FY’23, I still see meaningful potential in these shares today.

 

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Columbus McKinnon's Transformation Still Not Fully Reflected In The Shares