📊 CMCO Key Takeaways
Is Columbus Mckinnon Corp. (CMCO) a Good Investment?
Columbus McKinnon exhibits severe profitability deterioration with net margins at 1.2%, return on equity collapsing to 0.9%, and diluted EPS declining 111.2% year-over-year, indicating fundamental operational stress. The company's weak interest coverage of 1.2x combined with $399.4M long-term debt and declining revenues (-5.0% YoY) raises concerns about debt service capability and sustainable cash generation.
Columbus McKinnon shows weakening fundamentals: revenue declined 5.0% year over year while operating margin fell to 4.5% and net margin to just 1.2%, leaving very limited earnings power. The balance sheet is not overstretched on debt-to-equity and liquidity is acceptable, but low interest coverage, weak returns on capital, and thin free cash flow suggest the business currently lacks strong growth quality and financial resilience.
Why Buy Columbus Mckinnon Corp. Stock? CMCO Key Strengths
- Adequate liquidity position with current ratio of 1.83x providing near-term operational flexibility
- Moderate leverage at 0.43x debt-to-equity ratio, which is not extreme despite profitability challenges
- Positive operating cash flow of $20.6M and free cash flow of $10.2M showing some ability to generate cash despite low margins
- Gross margin remains solid at 34.0%, indicating the core product mix still has underlying pricing or cost structure support
- Liquidity is adequate with a 1.83x current ratio and 0.99x quick ratio, reducing near-term working capital stress
- Free cash flow remains positive and debt/equity of 0.43x is moderate rather than excessive
CMCO Stock Risks: Columbus Mckinnon Corp. Investment Risks
- Severely compressed profitability with net margin of 1.2% and operating margin of 4.5% indicating minimal operational efficiency and pricing power
- Dangerously low interest coverage ratio of 1.2x leaves minimal cushion for debt servicing amid revenue decline and margin compression
- Negative EPS trajectory with 111.2% decline suggests deteriorating financial position; operating margin barely covers interest expense, leaving insufficient buffer for equity holders
- Revenue contraction of 5.0% YoY combined with weak ROE of 0.9% and ROA of 0.5% indicates the company is destroying shareholder value
- Revenue contraction and a sharp EPS decline point to deteriorating operating momentum
- Interest coverage of 1.2x leaves little cushion if earnings weaken further or borrowing costs stay elevated
- ROE of 0.9%, ROA of 0.5%, and a 1.4% FCF margin indicate poor capital efficiency and low-quality earnings
Key Metrics to Watch
- Quarterly revenue trend and gross margin recovery potential
- Interest coverage ratio - must improve above 1.5x for debt sustainability
- Operating margin expansion - target return to at least 8-10% historical levels
- Free cash flow conversion and cash balance given $399.4M debt burden
- Management's debt reduction strategy and capital allocation decisions
- Operating margin and interest coverage
- Free cash flow generation and revenue growth trend
Columbus Mckinnon Corp. (CMCO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.4% FCF margin may limit capital allocation flexibility.
CMCO Profit Margin, ROE & Profitability Analysis
CMCO vs Industrial Sector: How Columbus Mckinnon Corp. Compares
How Columbus Mckinnon Corp. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Columbus Mckinnon Corp. Stock Overvalued? CMCO Valuation Analysis 2026
Based on fundamental analysis, Columbus Mckinnon Corp. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Columbus Mckinnon Corp. Balance Sheet: CMCO Debt, Cash & Liquidity
CMCO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Columbus Mckinnon Corp.'s revenue has grown significantly by 16% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.68 reflects profitable operations.
CMCO Revenue Growth, EPS Growth & YoY Performance
CMCO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $234.1M | -$1.9M | $-0.09 |
| Q2 2026 | $242.3M | -$1.9M | $0.09 |
| Q1 2026 | $235.9M | -$1.9M | $-0.07 |
| Q3 2025 | $234.1M | -$2.5M | $-0.09 |
| Q2 2025 | $242.3M | -$6.4M | $-0.22 |
| Q1 2025 | $235.5M | $8.6M | $0.30 |
| Q3 2024 | $230.4M | $8.4M | $0.34 |
| Q2 2023 | $223.6M | N/A | $0.28 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Columbus Mckinnon Corp. Dividends, Buybacks & Capital Allocation
CMCO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Columbus Mckinnon Corp. (CIK: 0001005229)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CMCO
What is the AI rating for CMCO?
Columbus Mckinnon Corp. (CMCO) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CMCO's key strengths?
Claude: Adequate liquidity position with current ratio of 1.83x providing near-term operational flexibility. Moderate leverage at 0.43x debt-to-equity ratio, which is not extreme despite profitability challenges. ChatGPT: Gross margin remains solid at 34.0%, indicating the core product mix still has underlying pricing or cost structure support. Liquidity is adequate with a 1.83x current ratio and 0.99x quick ratio, reducing near-term working capital stress.
What are the risks of investing in CMCO?
Claude: Severely compressed profitability with net margin of 1.2% and operating margin of 4.5% indicating minimal operational efficiency and pricing power. Dangerously low interest coverage ratio of 1.2x leaves minimal cushion for debt servicing amid revenue decline and margin compression. ChatGPT: Revenue contraction and a sharp EPS decline point to deteriorating operating momentum. Interest coverage of 1.2x leaves little cushion if earnings weaken further or borrowing costs stay elevated.
What is CMCO's revenue and growth?
Columbus Mckinnon Corp. reported revenue of $755.6M.
Does CMCO pay dividends?
Columbus Mckinnon Corp. pays dividends, with $6.0M distributed to shareholders in the trailing twelve months.
Where can I find CMCO SEC filings?
Official SEC filings for Columbus Mckinnon Corp. (CIK: 0001005229) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CMCO's EPS?
Columbus Mckinnon Corp. has a diluted EPS of $0.30.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CMCO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Columbus Mckinnon Corp. has a SELL rating with 81% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CMCO stock overvalued or undervalued?
Valuation metrics for CMCO: ROE of 0.9% (sector avg: 15%), net margin of 1.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy CMCO stock in 2026?
Our dual AI analysis gives Columbus Mckinnon Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CMCO's free cash flow?
Columbus Mckinnon Corp.'s operating cash flow is $20.6M, with capital expenditures of $10.3M. FCF margin is 1.4%.
How does CMCO compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 1.2% (avg: 10%), ROE 0.9% (avg: 15%), current ratio 1.83 (avg: 1.8).