Columbus McKinnon Corporation (CMCO) is transforming the way industries move and secure materials, impacting everything from manufacturing floors to construction sites. Renowned for its innovative motion solutions, CMCO offers a diverse range of products, including advanced hoisting systems and automation technologies, that enhance operational efficiency across various sectors. As we delve into the investment potential of this industry leader, we must consider whether its current market valuation aligns with its robust growth prospects and sound fundamentals.
Table of contents
Company Description
Columbus McKinnon Corporation (CMCO), founded in 1875 and headquartered in Buffalo, New York, specializes in designing, manufacturing, and marketing intelligent motion solutions for material handling. The company operates primarily in the agricultural machinery industry, offering a broad range of products including electric and air-powered hoists, crane systems, rigging equipment, and automation technologies. With a market cap of approximately $493M, CMCO serves diverse sectors such as transportation, energy, and life sciences, distributing products directly and through various partners. Positioned as a leader in ergonomic material movement, Columbus McKinnon is committed to innovation and enhancing operational efficiencies in its industry.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of Columbus McKinnon Corporation, focusing on its income statement, financial ratios, and dividend payout policy.
Income Statement
The following table presents the Income Statement for Columbus McKinnon Corporation (CMCO) over the last five fiscal years, providing key insights into the company’s financial performance.
| Item | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 650M | 907M | 936M | 1.013B | 963M |
| Cost of Revenue | 429M | 591M | 594M | 639M | 637M |
| Operating Expenses | 178M | 242M | 244M | 268M | 271M |
| Gross Profit | 220M | 316M | 342M | 375M | 326M |
| EBITDA | 50M | 106M | 147M | 145M | 75M |
| EBIT | 22M | 57M | 97M | 99M | 27M |
| Interest Expense | 12M | 20M | 28M | 38M | 32M |
| Net Income | 9M | 30M | 48M | 47M | -5M |
| EPS | 0.38 | 1.06 | 1.69 | 1.62 | -0.18 |
| Filing Date | 2021-05-26 | 2022-05-25 | 2023-05-25 | 2024-05-29 | 2025-05-28 |
Interpretation of Income Statement
Over the last five years, Columbus McKinnon Corporation saw a noticeable increase in revenue from 650M in 2021 to a peak of 1.013B in 2024; however, it contracted to 963M in 2025. Notably, Net Income experienced significant fluctuations, peaking at 48M in 2023 before falling to a loss of 5M in 2025. Operating margins have shown some stability, but the recent decline in revenue and profitability raises concerns about the company’s ability to maintain its previous growth trajectory. The substantial drop in EBITDA in 2025 indicates challenges in managing costs and operational efficiency.
Financial Ratios
The following table presents the financial ratios for Columbus McKinnon Corporation (CMCO) over the most recent fiscal years.
| Ratios | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Net Margin | 3.27% | 5.17% | 4.60% | -0.53% |
| ROE | 1.72% | 5.81% | 5.29% | -0.58% |
| ROIC | 1.92% | 6.72% | 4.23% | 3.30% |
| P/E | 40.08 | 21.95 | 26.56 | -94.69 |
| P/B | 2.38 | 1.27 | 1.40 | 0.55 |
| Current Ratio | 2.40 | 2.05 | 1.96 | 1.81 |
| Quick Ratio | 1.80 | 1.31 | 1.25 | 1.04 |
| D/E | 0.47 | 0.63 | 0.68 | 0.61 |
| Debt-to-Assets | 21.64% | 30.97% | 32.84% | 31.09% |
| Interest Coverage | 1.77 | 3.50 | 2.82 | 1.68 |
| Asset Turnover | 0.54 | 0.55 | 0.56 | 0.55 |
| Fixed Asset Turnover | 9.26 | 9.92 | 5.89 | 9.07 |
| Dividend Yield | 0.55% | 0.75% | 0.65% | 1.65% |
Interpretation of Financial Ratios
Columbus McKinnon Corporation (CMCO) shows mixed financial health based on its latest ratios as of March 31, 2025. The liquidity ratios indicate a current ratio of 1.81 and a quick ratio of 1.04, suggesting adequate short-term financial stability. However, the profitability ratios are concerning, with a net profit margin of -0.53%, indicating losses. The solvency is low, evidenced by a debt-to-equity ratio of 0.61, suggesting a reliance on debt. Efficiency metrics like asset turnover (0.55) and inventory turnover (3.21) are moderate, but there’s room for improvement. Overall, while liquidity appears stable, profitability and solvency raise red flags that potential investors should consider.
Evolution of Financial Ratios
Over the past five years, CMCO’s financial ratios exhibit a downward trend in profitability, particularly with net profit margins decreasing from positive values to negative. Liquidity ratios have remained stable, while solvency ratios have fluctuated, indicating varying levels of debt management. This performance trajectory warrants close monitoring as the company navigates its financial landscape.
Distribution Policy
Columbus McKinnon Corporation (CMCO) does not currently pay dividends, reflecting its focus on reinvestment and growth. The company is in a high-growth phase, prioritizing research and development and strategic acquisitions to enhance long-term shareholder value. Additionally, CMCO has engaged in share buybacks, which can signal confidence in its future prospects. Overall, this distribution approach appears to support sustainable long-term value creation for shareholders, assuming effective execution of its growth strategy.
Sector Analysis
Columbus McKinnon Corporation (CMCO) operates in the Agricultural – Machinery industry, providing advanced motion solutions for material handling. Its key products include hoists, cranes, and rigging equipment, competing with companies like Konecranes and Terex.
Strategic Positioning
Columbus McKinnon Corporation (CMCO) holds a significant position in the agricultural machinery sector, with a market capitalization of approximately $493M. The company’s diverse range of intelligent motion solutions allows it to capture a sizable market share, particularly in sectors like industrial automation and construction. However, competitive pressure from emerging technologies and alternative solutions remains a challenge. To mitigate risks, CMCO must continue innovating and adapting to technological disruptions while benchmarking against key competitors to maintain its market relevance.
Revenue by Segment
The following chart illustrates Columbus McKinnon Corporation’s revenue distribution across various segments for the fiscal year 2024, highlighting performance trends and key business drivers.
In FY 2024, CMCO’s revenue was predominantly driven by the Hoists segment, generating 480M, followed by High Precision Conveyors at 155M and Digital Power Control Systems at 110M. Compared to FY 2023, Hoists showed a slight decline from 495M, while High Precision Conveyors experienced a decrease as well. Notably, the Actuators and Rotary Unions segment saw a drop to 88M from 97M in the previous year. This mixed performance suggests potential margin pressures and the need for strategic adjustments, particularly in the key segments that have historically driven strong revenue.
Key Products
In this section, I will outline the key products offered by Columbus McKinnon Corporation (CMCO), which are crucial for their operations in the intelligent motion solutions sector. Below is a table summarizing these products:
| Product | Description |
|---|---|
| Electric Hoists | Advanced electric-powered hoists designed for efficient lifting and positioning of heavy materials. |
| Crane Systems | Comprehensive crane components and systems, including mobile cranes and fall protection solutions. |
| Rigging Equipment | A range of rigging tools such as shackles, chains, and lifting slings used in various material handling tasks. |
| Automation Controls | Control systems for motors and machinery, enhancing operational efficiency in automated environments. |
| Conveyor Systems | Versatile conveyor systems for various applications, ensuring smooth material flow in warehouses and production. |
| Mechanical Actuators | Devices that provide precise motion control, used in various industrial applications. |
| Custom Engineered Hoists | Tailored hoisting solutions designed to meet specific customer requirements and unique operational challenges. |
| Power Delivery Subsystems | Systems that manage power supply and distribution for industrial machinery and processes. |
These products serve a wide range of industries, enhancing productivity and safety in material handling and motion control.
Main Competitors
The competitive landscape for Columbus McKinnon Corporation (CMCO) in the agricultural machinery sector includes several notable companies, each with a significant market presence.
| Company | Market Cap |
|---|---|
| Covenant Logistics Group, Inc. | 545M |
| Safe Bulkers, Inc. | 543M |
| Kforce Inc. | 542M |
| Titan International, Inc. | 525M |
| Cryoport, Inc. | 478M |
| Ennis, Inc. | 461M |
| Byrna Technologies Inc. | 447M |
| The Manitowoc Company, Inc. | 435M |
| Compass Diversified | 431M |
| AIRO Group Holdings, Inc. | 297M |
| Columbus McKinnon Corporation | 493M |
The main competitors listed above operate primarily in North America, showcasing a diverse range of services and products related to logistics, machinery, and technology in the industrial sector. Each company offers unique solutions that cater to various market verticals, creating a competitive environment for CMCO.
Competitive Advantages
Columbus McKinnon Corporation (CMCO) holds significant competitive advantages through its extensive product portfolio and established presence in various industries such as transportation, energy, and automation. The company’s focus on intelligent motion solutions positions it well to capitalize on trends toward automation and efficiency. Looking ahead, CMCO has opportunities to introduce innovative products and expand into emerging markets, particularly in e-commerce and life sciences. Such strategic initiatives can enhance its market share and drive long-term growth, making it an attractive option for investors seeking stability and expansion potential.
SWOT Analysis
This SWOT analysis aims to identify the strengths, weaknesses, opportunities, and threats that Columbus McKinnon Corporation (CMCO) faces in the current market landscape.
Strengths
- Strong brand recognition
- Diverse product range
- Established market presence
Weaknesses
- Dependence on a few key markets
- High operational costs
- Limited international presence
Opportunities
- Expansion into emerging markets
- Growth in e-commerce logistics
- Increasing demand for automation
Threats
- Intense competition
- Economic downturns
- Regulatory challenges
Overall, CMCO’s strengths position it well in the market, but the company must address its weaknesses to capitalize on emerging opportunities while navigating potential threats. A strategic focus on diversification and international expansion could enhance resilience and growth prospects.
Stock Analysis
Over the past year, Columbus McKinnon Corporation (CMCO) has experienced significant price volatility, marked by key movements that reflect broader trading dynamics and investor sentiment.
Trend Analysis
Analyzing the stock’s performance over the past year, CMCO has seen a price change of -53.54%. This substantial decrease indicates a bearish trend, with the stock showing signs of acceleration in its decline. The highest price recorded was 44.9, while the lowest was 12.96. Additionally, the standard deviation of 11.28 suggests considerable volatility in the stock’s price movements.
In the recent period from September 21, 2025, to December 7, 2025, the stock has shown a positive price change of 13.95%, indicating a shift towards a more favorable market perception. The trend slope of 0.16 confirms this upward movement, albeit within the context of a broader bearish trend.
Volume Analysis
Over the last three months, the total trading volume for CMCO has reached 159.25M, with buyer-driven activity amounting to 74.43M and seller-driven activity at 84.55M. This indicates a buyer percentage of 46.73%, suggesting that seller dominance has been more pronounced overall, despite the increasing volume trend.
In the recent period, particularly from September 21, 2025, to December 7, 2025, buyer volume surged to 11.94M, while seller volume was significantly lower at 5.91M, resulting in a buyer dominance percentage of 66.89%. This shift towards buyer-driven activity suggests a growing positive sentiment among investors, indicating increased market participation and a potential reversal in trading dynamics.
Analyst Opinions
Recent recommendations for Columbus McKinnon Corporation (CMCO) indicate a consensus to buy. Analysts have given a B+ rating, highlighting strong discounted cash flow metrics and a solid price-to-book ratio. Specifically, the discounted cash flow score of 5 suggests robust future cash generation potential. However, some concerns were raised about return on equity and price-to-earnings metrics, scoring 2 and 1 respectively. Overall, I see a positive outlook for CMCO in the current year, with analysts favoring a buy position.
Stock Grades
Recent evaluations of Columbus McKinnon Corporation (CMCO) by reputable grading companies indicate a shift in sentiment among analysts. Here’s a summary of the latest stock grades:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | Downgrade | Neutral | 2025-02-11 |
| DA Davidson | Maintain | Buy | 2024-02-05 |
| DA Davidson | Maintain | Buy | 2022-10-04 |
| DA Davidson | Maintain | Buy | 2022-10-03 |
| Barrington Research | Maintain | Outperform | 2022-07-29 |
| Barrington Research | Maintain | Outperform | 2022-07-28 |
| JP Morgan | Downgrade | Neutral | 2022-05-26 |
| Barrington Research | Maintain | Outperform | 2022-05-26 |
| Barrington Research | Maintain | Outperform | 2022-05-25 |
| JP Morgan | Downgrade | Neutral | 2022-05-25 |
The overall trend shows a recent downgrade to “Neutral” from “Buy” by DA Davidson, indicating a cautious outlook. This change reflects a growing concern among analysts regarding CMCO’s market performance, despite maintaining previous positive assessments earlier. It’s essential to consider this shift while evaluating potential investment strategies.
Target Prices
The consensus among analysts for Columbus McKinnon Corporation (CMCO) indicates a stable outlook.
| Target High | Target Low | Consensus |
|---|---|---|
| 50 | 48 | 49 |
Overall, analysts expect CMCO’s stock to remain in a narrow range, with a consensus target of 49.
Consumer Opinions
Consumer sentiment towards Columbus McKinnon Corporation (CMCO) reveals a mix of satisfaction and areas for improvement, reflecting the diverse experiences of its customers.
| Positive Reviews | Negative Reviews |
|---|---|
| “Excellent product durability and performance!” | “Customer service response times are slow.” |
| “Innovative solutions that meet our needs.” | “Pricing is higher compared to competitors.” |
| “Reliable delivery and installation.” | “Issues with warranty claims process.” |
Overall, consumer feedback highlights strengths in product durability and innovation, while criticisms often focus on customer service responsiveness and pricing concerns.
Risk Analysis
In evaluating Columbus McKinnon Corporation (CMCO), it is crucial to consider various risks that may impact performance and investment decisions. Below is a summary of the key risks:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuation in demand for industrial products | High | High |
| Supply Chain Risk | Disruptions in the global supply chain | Medium | High |
| Regulatory Risk | Changes in regulations affecting manufacturing | Medium | Medium |
| Competition Risk | Increased competition from peers and new entrants | High | Medium |
| Technological Risk | Rapid changes in technology affecting product relevance | Medium | High |
In my assessment, market risk and supply chain risk are the most likely and impactful for CMCO, especially given the current economic climate and ongoing global supply chain challenges.
Should You Buy Columbus McKinnon Corporation?
Columbus McKinnon Corporation (CMCO) has reported a revenue of 1.07B and a net income of -5.14M, indicating a negative net profit margin of -0.0053. The company’s return on invested capital (ROIC) stands at 3.30%, which is lower than the weighted average cost of capital (WACC) of 7.21%, suggesting value destruction. Additionally, with total debt at 540.67M, the debt-to-equity ratio is 1.10, reflecting a higher leverage position. The overall rating for CMCO is B+, representing a stable but cautious outlook.
Favorable signals
In my analysis of Columbus McKinnon Corporation (CMCO), I found several favorable elements. The company has a positive current ratio of 1.81, which indicates it can cover its short-term liabilities. Additionally, the price-to-book ratio is 0.55, suggesting the stock may be undervalued relative to its book value. The fixed asset turnover ratio of 9.07 highlights efficient use of fixed assets, and the interest expense percentage of 3.37 reflects manageable debt levels.
Unfavorable signals
However, there are significant unfavorable elements present in the data. The company has reported a revenue growth decline of -4.98% and gross profit growth of -13.11%, indicating deteriorating sales performance. Both net margin and net margin growth are negative at -0.53% and -111.6%, respectively, which raises concerns about profitability. Furthermore, the return on equity (ROE) stands at -0.58%, signaling poor returns for shareholders, and the interest coverage ratio of 0.83 suggests potential difficulties in meeting interest obligations.
Conclusion
Given the unfavorable global opinion of the income statement and the favorable global evaluation of the ratios, the situation appears mixed. However, the long-term trend is bearish, and since recent seller volume exceeds recent buyer volume, it might be more prudent to wait for buyers to return before considering any investment.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Fisher Asset Management LLC Decreases Position in Columbus McKinnon Corporation $CMCO – MarketBeat (Dec 05, 2025)
- Why Columbus McKinnon (CMCO) Stock Is Up Today – Yahoo Finance (Dec 03, 2025)
- Columbus McKinnon: Lifting Above Its Weight (NASDAQ:CMCO) – Seeking Alpha (Dec 01, 2025)
- Columbus McKinnon Declares Quarterly Dividend of $0.07 per Share – PR Newswire (Oct 20, 2025)
- Columbus McKinnon Corporation $CMCO Shares Sold by Creative Planning – MarketBeat (Dec 01, 2025)
For more information about Columbus McKinnon Corporation, please visit the official website: columbusmckinnon.com
