As a company tied to industrial production, Columbus McKinnon (CMCO)
is already seeing a severe hit to its business, and that’s only going
to get worse in the June quarter. Looking beyond the next couple of
quarters, though, the company is in a pretty strong position having
successfully executed on a multiyear plan to improve manufacturing and
supply chain efficiency, eliminate non-strategic businesses, and
simplify the portfolio. Now the company is transitioning to more of a
growth phase that will include investing in automation-enabling
technologies and pursuing select M&A.
Since my
last update on the company, industrial production has plunged, but the
company has hired a new CEO. If low-to-mid single-digit revenue growth
and low double-digit FCF margins remain reasonable long-term
assumptions, Columbus McKinnon shares look undervalued today with a
double-digit long-term annualized total return potential.
Read the full article here:
Columbus McKinnon Braced For The Downturn, With A New CEO To Drive Future Growth
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