Columbus Story

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CMCO -- USA Stock  

USD 35.24  1.00  2.76%

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 month ago
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Will Hyster Yale (NYSE:HY) and Columbus McKinnon (NASDAQ:CMCO) deliver in August?
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 companies, such as Columbus or Hyster 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 $0.15 per share.
The value of Payment of Dividends and Other Cash Distributions is expected to slide to about (6.1 M). The value of Dividend Yield is estimated to slide to 0.009316.
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-5.7 M-6.1 M
Dividend Yield 0.01  0.009316 
Dividends per Basic Common Share 0.24  0.23 
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. Please check the breakdown between Columbus McKinnon's total debt and its cash.

Correlation Between Columbus and Hyster Yale Materials

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 Hyster Yale to your portfolio. If Hyster Yale 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, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between CMCO and HY for more information.

Exercise or conversion by Trumbull R Scott of 1502 shares of Columbus McKinnon subject to Rule 16b-3

Legal trades by Columbus McKinnon insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Columbus insider trading alert for exercise of restricted stock units by Trumbull R Scott, the corporate stakeholder, on 4th of September 2020. This event was filed by Columbus Mckinnon Corp with SEC on 2020-09-04. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down

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.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Columbus McKinnon. Please refer to our Terms of Use for any information regarding our disclosure principles.

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