In a world where efficient logistics and material handling are crucial to daily operations, Hyster-Yale Materials Handling, Inc. stands at the forefront, transforming how industries operate. Renowned for its innovative lift trucks and superior aftermarket services, Hyster-Yale not only shapes the agricultural machinery landscape but also enhances productivity across various sectors. As we delve into the investment analysis, I invite you to consider whether the company’s robust fundamentals still support its current market valuation and future growth potential.
Table of contents
Company Description
Hyster-Yale Materials Handling, Inc. is a prominent player in the agricultural machinery industry, specializing in the design, engineering, manufacturing, and servicing of lift trucks and attachments. Founded in 1991 and headquartered in Cleveland, Ohio, the company operates globally, primarily targeting markets in North America, Europe, and Asia. Hyster-Yale markets its products under the well-known Hyster and Yale brands, along with a range of aftermarket parts and attachments. With approximately 8,500 employees, the company is recognized for its innovation in hydrogen fuel-cell technology and is committed to enhancing efficiency in material handling. As a leader in its field, Hyster-Yale is shaping the industry through its sustainable practices and robust product offerings.
Fundamental Analysis
In this section, I will analyze Hyster-Yale Materials Handling, Inc.’s income statement, financial ratios, and dividend payout policy to assess its financial health.
Income Statement
Below is the Income Statement for Hyster-Yale Materials Handling, Inc., summarizing key financial metrics over the last five years.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 2.81B | 3.08B | 3.55B | 4.12B | 4.31B |
| Cost of Revenue | 2.35B | 2.71B | 3.11B | 3.33B | 3.41B |
| Operating Expenses | 0.42B | 0.52B | 0.47B | 0.58B | 0.65B |
| Gross Profit | 0.47B | 0.36B | 0.43B | 0.79B | 0.90B |
| EBITDA | 0.99B | -0.09B | 0.09B | 0.26B | 0.30B |
| EBIT | 0.06B | -0.14B | -0.03B | 0.22B | 0.25B |
| Interest Expense | 0.01B | 0.02B | 0.03B | 0.04B | 0.03B |
| Net Income | 0.04B | -0.17B | -0.07B | 0.13B | 0.14B |
| EPS | 2.21 | -10.29 | -4.38 | 7.35 | 8.16 |
| Filing Date | 2021-02-24 | 2022-02-28 | 2023-02-27 | 2024-02-27 | 2025-02-25 |
Interpretation of Income Statement
Over the period, we observe a consistent increase in Revenue from 2.81B in 2020 to 4.31B in 2024, indicating strong sales growth. Net Income also shows improvement, recovering from a loss of 0.17B in 2021 to a profit of 0.14B in 2024. Gross Profit margins have seen stability, enhancing from 16.7% in 2020 to approximately 20.9% in 2024. The most recent year shows a slight growth slowdown in Revenue, but margins improved, reflecting operational efficiency despite rising costs. This positions the company favorably for future growth with strengthened profitability.
Financial Ratios
Below is a summary of the financial ratios for Hyster-Yale Materials Handling, Inc. over the last few fiscal years.
| Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 1.32% | -5.62% | -2.09% | 3.06% | 3.30% |
| ROE | 6.01% | -48.45% | -36.25% | 32.29% | 29.95% |
| ROIC | 3.84% | -16.05% | -4.63% | 13.27% | 13.59% |
| P/E | 26.93 | -3.99 | -5.77 | 8.47 | 6.24 |
| P/B | 1.62 | 1.94 | 2.09 | 2.73 | 1.87 |
| Current Ratio | 1.49 | 1.22 | 1.09 | 1.22 | 1.35 |
| Quick Ratio | 0.82 | 0.52 | 0.49 | 0.55 | 0.64 |
| D/E | 0.47 | 1.45 | 2.70 | 1.27 | – |
| Debt-to-Assets | 15.55% | 26.32% | 27.29% | 23.76% | 26.70% |
| Interest Coverage | 3.64 | -9.83 | -1.38 | 5.60 | 7.24 |
| Asset Turnover | 1.51 | 1.56 | 1.75 | 1.98 | 2.12 |
| Fixed Asset Turnover | 8.26 | 9.31 | 11.45 | 13.12 | 14.05 |
| Dividend Yield | 2.13% | 3.12% | 5.10% | 2.09% | 2.70% |
Interpretation of Financial Ratios
Analyzing Hyster-Yale Materials Handling, Inc. (HY) based on the 2024 financial ratios, we observe a mixed performance. The liquidity ratios show a current ratio of 1.35, indicating a satisfactory ability to cover short-term obligations. However, the quick ratio of 0.64 suggests potential liquidity concerns since it falls below 1. The solvency ratio of 0.12 points to significant debt levels relative to assets, raising concerns about long-term financial stability. Profitability ratios reveal a net profit margin of 3.30%, which, while positive, is relatively low. Efficiency ratios, like the receivables turnover of 8.82, indicate effective collections but could be improved further. Overall, while there are strengths in liquidity and efficiency, the concerning solvency position and low profitability margins require attention.
Evolution of Financial Ratios
Over the past five years, Hyster-Yale’s financial ratios have shown a gradual improvement in liquidity and profitability, particularly a rise in the current ratio from 1.09 in 2022 to 1.35 in 2024. However, the solvency ratios have remained concerningly low, indicating ongoing debt challenges.
Distribution Policy
Hyster-Yale Materials Handling, Inc. (HY) currently pays dividends, with a payout ratio of approximately 17%. The dividend per share has shown a consistent upward trend, reaching $1.38 in the latest fiscal year, yielding around 2.7%. The company also engages in share buybacks, which, while beneficial for boosting stock value, introduces risks of unsustainable distributions if not balanced with cash flow. Overall, HY’s distribution policy appears to support long-term shareholder value creation, provided it maintains healthy cash flow management.
Sector Analysis
Hyster-Yale Materials Handling, Inc. operates in the Agricultural – Machinery industry, providing lift trucks and related products under the Hyster and Yale brands, facing competition from major players while leveraging its strong aftermarket services.
Strategic Positioning
Hyster-Yale Materials Handling, Inc. (HY) holds a competitive position in the agricultural machinery sector, with a market capitalization of approximately $600M. The company primarily markets its products under the Hyster and Yale brands, which are well-recognized in the lift truck and attachments market. However, competitive pressure is increasing, particularly from new entrants leveraging technological advancements. The company must navigate these challenges while maintaining its market share, especially as it faces potential disruptions from innovations in automation and fuel-cell technology. Continued investment in R&D is essential for sustaining its competitive edge.
Revenue by Segment
The pie chart below illustrates Hyster-Yale Materials Handling, Inc.’s revenue distribution across various segments for the fiscal year ending December 31, 2024.
In 2024, the only segment reported is “Other revenue,” which generated 355M. This represents an increase from 311M in 2023, indicating a positive trend in this area. However, the overall business remains heavily reliant on its Lift truck business segment, which has not been reported for the latest fiscal year. The lack of detailed segment reporting could signal potential concentration risks, as the company’s revenue diversification appears limited. Investors should monitor these trends closely, as reliance on a single revenue stream can lead to vulnerabilities in changing market conditions.
Key Products
Hyster-Yale Materials Handling, Inc. offers a diverse range of products tailored to meet the needs of various industries. Below is a summary of their key products:
| Product | Description |
|---|---|
| Hyster Lift Trucks | A line of reliable lift trucks designed for various applications, available in electric, diesel, and LPG models. |
| Yale Lift Trucks | Durable lift trucks known for their efficiency and performance, catering to both light and heavy-duty tasks. |
| Aftermarket Parts | Replacement parts and components for Hyster and Yale trucks, ensuring longevity and optimal performance. |
| Bolzoni Attachments | A range of attachments including forks, clamps, and other tools to enhance lift truck functionality. |
| Hydrogen Fuel Cells | Innovative hydrogen fuel-cell stacks and engines designed for sustainable and efficient material handling. |
| Port Equipment Solutions | Specialized equipment for port operations, including reach stackers and container handlers. |
| Rough Terrain Forklifts | Heavy-duty forklifts designed for use in challenging environments, such as construction and outdoor settings. |
These products reflect Hyster-Yale’s commitment to quality and innovation in the industrial equipment sector, providing solutions for diverse operational needs.
Main Competitors
The competitive landscape for Hyster-Yale Materials Handling, Inc. is characterized by several key players in the agricultural machinery sector. Below is a summary of the main competitors based on their market capitalization:
| Company | Market Cap |
|---|---|
| Sun Country Airlines Holdings, Inc. | 761M |
| Richtech Robotics Inc. Class B Common Stock | 669M |
| Graham Corporation | 636M |
| Quanex Building Products Corporation | 635M |
| Kornit Digital Ltd. | 629M |
| Insteel Industries, Inc. | 615M |
| NWPX Infrastructure, Inc. | 574M |
| FTAI Infrastructure Inc. | 539M |
| Titan International, Inc. | 525M |
| Hyster-Yale Materials Handling, Inc. | 600M |
In summary, Hyster-Yale competes with a mix of companies involved in various aspects of materials handling and agricultural machinery. The relevant geographic market is primarily North America, as well as global operations in certain segments.
Competitive Advantages
Hyster-Yale Materials Handling, Inc. (HY) boasts several competitive advantages that position it well for future growth. The company’s strong brand recognition, particularly through Hyster and Yale, allows it to maintain a loyal customer base. Additionally, its focus on innovation, including the development of hydrogen fuel-cell technology, opens up new markets and enhances its product offerings. As demand for sustainable solutions in the materials handling industry grows, HY is well-positioned to capitalize on these opportunities, further solidifying its market presence and driving long-term profitability.
SWOT Analysis
This SWOT analysis aims to evaluate the strengths, weaknesses, opportunities, and threats related to Hyster-Yale Materials Handling, Inc. (HY).
Strengths
- Strong brand recognition
- Diverse product range
- Global distribution network
Weaknesses
- High operational costs
- Dependence on specific markets
- Recent stock volatility
Opportunities
- Growth in e-commerce logistics
- Expansion into emerging markets
- Increasing demand for green technologies
Threats
- Intense competition
- Supply chain disruptions
- Economic downturns
In summary, Hyster-Yale’s strengths position it well for growth, particularly through expanding opportunities. However, it must navigate its weaknesses and external threats carefully to sustain its market position and profitability.
Stock Analysis
In this analysis, I will review the stock price movements of Hyster-Yale Materials Handling, Inc. (ticker: HY) over the past year, highlighting significant price dynamics and overall trading behavior.
Trend Analysis
Over the past year, Hyster-Yale’s stock has experienced a percentage change of -47.44%, indicating a bearish trend. Notably, the stock has seen a deceleration in its downward movement, with the highest price recorded at 78.14 and the lowest at 28.15. The standard deviation of 13.45 suggests considerable volatility during this period.
Volume Analysis
In the last three months, Hyster-Yale has witnessed a total trading volume of 48.36M, with buyer-driven activity at 25.21M, representing 52.12% of the overall volume. This trend is increasing, indicating a slightly buyer-dominant sentiment in the market, as seen in the recent period where buyer volume reached 3.33M compared to seller volume of 2.72M.
Analyst Opinions
Recent analyst recommendations for Hyster-Yale Materials Handling, Inc. (HY) indicate a cautious stance, with an overall rating of C+. Analysts suggest a mix of hold and sell ratings, primarily due to the company’s low return on equity and price-to-earnings scores, which stand at 2 and 1, respectively. Notably, the debt-to-equity score is a concern, reflecting potential leverage risks. Despite some analysts advocating for a hold position, the consensus leans towards a sell for this year, signaling caution for potential investors.
Stock Grades
I found reliable grades for Hyster-Yale Materials Handling, Inc. (HY) from verified grading companies, indicating a consistent outlook for the stock.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Roth MKM | maintain | Buy | 2024-11-06 |
| Roth MKM | maintain | Buy | 2024-08-08 |
| Roth MKM | maintain | Buy | 2024-06-07 |
| Northland Capital Markets | upgrade | Outperform | 2024-06-05 |
| Northland Capital Markets | downgrade | Market Perform | 2024-05-10 |
| Roth MKM | maintain | Buy | 2024-05-09 |
| EF Hutton | maintain | Buy | 2023-05-04 |
| EF Hutton | maintain | Buy | 2023-05-03 |
| EF Hutton | maintain | Buy | 2023-03-01 |
| EF Hutton | maintain | Buy | 2022-03-02 |
Overall, the trend in grades shows a strong endorsement from Roth MKM and a recent upgrade from Northland Capital Markets, although there was a downgrade from them earlier in May 2024. This suggests that while the stock has been rated positively, there may be some fluctuations in analyst sentiment that investors should monitor.
Target Prices
The consensus target price for Hyster-Yale Materials Handling, Inc. (HY) is firmly set at 40.
| Target High | Target Low | Consensus |
|---|---|---|
| 40 | 40 | 40 |
Overall, analysts have a strong agreement on the target price, indicating a stable outlook for the stock.
Consumer Opinions
Consumer sentiment about Hyster-Yale Materials Handling, Inc. reflects a mix of praise and concerns, showcasing the company’s performance in the materials handling industry.
| Positive Reviews | Negative Reviews |
|---|---|
| Reliable performance in heavy-duty applications. | Customer service can be slow to respond. |
| Innovative technology improves operational efficiency. | Parts availability issues reported. |
| Strong build quality ensures longevity. | Higher price point compared to competitors. |
| Excellent safety features in equipment. | Limited product range for some industries. |
Overall, consumer feedback indicates that while Hyster-Yale excels in performance and safety, concerns about customer service and pricing persist.
Risk Analysis
In evaluating Hyster-Yale Materials Handling, Inc. (HY), it’s crucial to identify and assess the potential risks that could impact the company’s performance. Below is a summary of key risks:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in demand for material handling equipment. | High | High |
| Supply Chain Risk | Disruptions in supply chain due to global events or shortages. | Medium | High |
| Regulatory Risk | Changes in regulations affecting manufacturing and safety. | Medium | Medium |
| Competition Risk | Increased competition from emerging technology and players. | High | Medium |
The most significant risks for HY stem from market fluctuations and supply chain vulnerabilities, particularly in the current economic climate where demand can be unpredictable.
Should You Buy Hyster-Yale Materials Handling, Inc.?
Hyster-Yale Materials Handling, Inc. (HY) presents a mixed financial picture for potential investors. The company achieved a revenue of 4.80B in 2025, reflecting an 11.35% increase from the previous year. However, despite positive net income of 14.2M, the return on invested capital (ROIC) at 0.1359 is lower than its weighted average cost of capital (WACC) of 8.06, indicating value destruction. The company’s total debt stands at 541.8M, leading to a debt-to-equity ratio of 0.905, which may raise concerns about financial leverage. Analysts rated the company a C+, suggesting caution for prospective investors.
Favorable signals
Hyster-Yale Materials Handling, Inc. exhibits several favorable elements in its financial performance. The company has a positive gross margin of 20.79% and a gross profit growth of 13.99%, indicating healthy profitability. Additionally, the return on equity (ROE) stands at 29.95%, and the return on invested capital (ROIC) is at 13.59%, both suggesting effective utilization of capital. The interest coverage ratio of 7.48 and a favorable price-to-earnings (P/E) ratio of 6.24 further support its financial robustness.
Unfavorable signals
Despite the favorable aspects, there are some unfavorable signals to consider. The net margin is at 3.3%, which is relatively low, and the quick ratio is 0.64, indicating potential liquidity issues. Furthermore, the company has a debt-to-equity ratio of 1.14, suggesting a high level of leverage. The operational expenses compared to revenue growth stand at 4.61%, which may indicate rising costs that could impact profitability.
Conclusion
Overall, while Hyster-Yale shows a favorable opinion in its income statement and ratios, the long-term trend indicates a bearish price change of -47.44%. Given that recent seller volume exceeds buyer volume, it might be prudent to wait for buyers to return before making any investment decisions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- HYSTER-YALE ANNOUNCES COST REDUCTION ACTIONS AMID CHALLENGING MARKET CONDITIONS – PR Newswire (Nov 19, 2025)
- Hyster-Yale Materials Handling’s (NYSE:HY) Q3: Beats On Revenue – Yahoo Finance (Nov 04, 2025)
- HYSTER-YALE DECLARES QUARTERLY DIVIDEND – Sahm (Nov 13, 2025)
- Hyster-Yale Materials Handling, Inc. (NYSE:HY) Q3 2025 Earnings Call Transcript – Insider Monkey (Nov 06, 2025)
- Hyster-Yale cuts 575 jobs globally amid industrial segment slowdown – Investing.com (Nov 19, 2025)
For more information about Hyster-Yale Materials Handling, Inc., please visit the official website: hyster-yale.com
