Will Hyster Yale (NYSE:HY) and Columbus McKinnon (NASDAQ:CMCO) deliver in August?

It looks like Hyster Yale will be up for a correction way faster as its share price whent up 2.00% today to Columbus McKinnon's 1.9846%. As many rational traders are trying to avoid industrials space, it makes sense to outline Columbus McKinnon a little further and understand how it stands against Hyster Yale and other similar entities. We are going to inspect some of the competitive aspects of both Columbus and Hyster.
Published over a year ago
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Reviewed by Michael Smolkin

By analyzing existing primary indicators between Columbus McKinnon and Hyster, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Hyster with a short position in Columbus McKinnon. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Columbus McKinnon has an asset utilization ratio of 104.7 percent. This suggests that the company is making $1.05 for each dollar of assets. An increasing asset utilization means that Columbus McKinnon is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Columbus or NikolaCorp is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

understanding Columbus McKinnon dividends

A dividend is the distribution of a portion of Columbus McKinnon earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Columbus McKinnon dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Columbus one year expected dividend income is about USD0.21 per share.
At this time, Columbus McKinnon's Dividends Paid is very stable compared to the past year. As of the 28th of March 2024, Dividend Yield is likely to grow to 0.01, though Dividend Paid And Capex Coverage Ratio is likely to grow to (19.76).
Last ReportedProjected for 2024
Dividends Paid9.2 M9.7 M
Dividend Yield 0.01  0.01 
Dividend Payout Ratio 0.15  0.16 
Dividend Paid And Capex Coverage Ratio(20.80)(19.76)
Investing in dividend-paying stocks, such as Columbus McKinnon is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Columbus McKinnon must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Columbus McKinnon. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Columbus McKinnon's Liquidity

Columbus McKinnon financial leverage refers to using borrowed capital as a funding source to finance Columbus McKinnon ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Columbus McKinnon financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Columbus McKinnon's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Columbus McKinnon's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Columbus McKinnon's total debt and its cash.

Correlation Between Columbus and NikolaCorp

In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Columbus McKinnon together with similar or unrelated positions with a negative correlation. For example, you can also add NikolaCorp to your portfolio. If NikolaCorp is not perfectly correlated to Columbus McKinnon it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Columbus McKinnon, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Columbus McKinnon and NikolaCorp in your portfolio? Please note if you are using this as a pair-trade strategy between Columbus McKinnon and NikolaCorp, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check pair correlation details between CMCO and NKLA for more information.

Is Columbus McKinnon valued appropriately by the market?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Columbus McKinnon revenue. Based on the latest financial disclosure, Columbus McKinnon reported 809.16 M of revenue. This is 76.87% lower than that of the Industrials sector and significantly higher than that of the Farm & Heavy Construction Machinery industry. The revenue for all United States stocks is 91.42% higher than that of Columbus McKinnon. As for Hyster Yale we see revenue of 3.24 B, which is much higher than that of the Farm & Heavy Construction Machinery
Columbus809.16 Million
Sector0.0
Hyster3.24 Billion
809.2 M
Columbus
Sector
3.2 B
Hyster

Columbus technical analysis suggests possible correction

The treynor ratio is down to 0.33 as of today. Columbus McKinnon shows above-average downside volatility for the selected time horizon. We advise investors to inspect Columbus McKinnon further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Columbus McKinnon future alpha.

Our Final Take On Columbus McKinnon

Whereas some other firms within the farm & heavy construction machinery industry are still a little expensive, even after the recent corrections, Columbus McKinnon may offer a potential longer-term growth to institutional investors. To conclude, as of the 30th of July 2020, our concluding 30 days buy-hold-sell recommendation on the company is Buy. We believe Columbus McKinnon is undervalued with below average chance of financial distress for the next two years.

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Editorial Staff

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