Manitex International Inc. (NASDAQ: MNTX): Small Company With Huge Potential
Manitex International Inc. (NASDAQ: MNTX): Small Company With Huge Potential
Small-cap companies offer profitable options for the experienced investor. With the fiscal cliff averted, spending is up again and many small-cap companies are in a good position to garner the benefits. Of course investing in small-caps can be risky, but a knowledgeable investor has the tools to make good decisions and get rewarded for risks taken. If, however, danger is not your thing, there is small-cap opportunity with minimal risk worthy of you consideration.
Manitex International Inc. (NASDAQ: MNTX) is a provider of engineered lifting solutions. Based in Bridgeview, Illinois, its products include cranes, forklifts, stacker, vehicles, and container handling equipment. The company prides itself on being recently named to the Forbes “America’s Best Small Companies” list for 2012, coming in at number 44 on the list. Manitex has a market cap of $142.91 million and is currently trading at $11.69 per share.
Q3 2012 numbers were solid. Manitex increased revenue by 44 percent jumping to $53.4 million. Its net income increased 145 percent to $2.5 million. The company repaid $3.8 million of long term debt from net proceeds of a 500,000 share equity raise. Its EBITDA increased 70 percent to $5.3 million, equaling 10 percent of sales, compared to $3.1 million or 8.5 percent for the third quarter of 2011. Overall, third quarter results surpassed the full results for fiscal 2011.
Management expects sales for fiscal year 2012 to be more than $200 million; a 40 percent growth over last year. EPS and EBITDA are projected to grow by about 175 percent and 65 percent respectively. These increases, according to management, represent perfect execution of the company’s objectives, giving Manitex solid profitability moving into 2013.
Recently, Manitex released a rough terrain crane. The vehicle can be configured to serve the oil, gas and mining applications sectors of the market. Distributed by dealers and rental fleets, orders have totaled around $1 million and have come mostly from customers in the refinery sector. Initial deliveries are scheduled for sometime this quarter.
At present, Manitex International trades lower than its competitors. United Technologies Corp. (NYSE: UTX), Caterpillar Inc. (NYSE: CAT), and Deere & Company (NYSE: DE) are valued at least 13 times earnings. Assuming that Manitex would trade at these valuation levels, investors could easily triple their money. Manitex may be a small company but it has huge potential.
About the Author: admin
Subscribe
If you enjoyed this article, subscribe to receive more just like it.
Love the name and the industry but I am waiting on a pullback as the stock is already up over 50% for the year.
Yeah!
I agree with you
Same situation here. Everything seems rosy but the right thing to do would be to wait for the pullback
I see transportation stocks move up very fast. Yes, 50% run-up should also be a concern for the prospective investor. Good company but price is always king.
Transportation stocks get in-depth scrutiny from me. No doubt about it, Manitex is a good option. But I tend to face the concerns about the environment. How do they go about their affairs? Do they neglect their corporate responsibilities? These things matter when discussing this sort of stocks. Stocks in this sector are vulnerable to lawsuits – a big stock threat.
Lawsuits can definitely be an issue but how are trucking/industrial stocks doing the past days?