lang="en">
Hyster Yale Inc Financial AnalysisKey Takeaways
- Hyster Yale Inc HY reported a revenue decline in Q3, from $1.02 billion to $979.1 million year-over-year.
- The company operates primarily in the Industrials sector, focusing on farm and heavy construction machinery.
- Current financial metrics indicate potential stress, with a Z-Score of 2.77 suggesting financial caution.
Company Overview
The company, identified by the ticker HY, has announced its financial outcomes for the third quarter. The revenue for this period is recorded at $979.1 million, which reflects a decline from the $1.02 billion achieved during the same quarter in the previous year. This decrease highlights a shift in financial performance for HY over the past year.
Hyster Yale Inc designs, engineers, manufactures, sells, and services a comprehensive line of lift trucks, attachments, aftermarket parts, and technology solutions marketed globally under the Hyster and Yale brand names. The company operates through five segments, with the majority of its revenue derived from the lift truck business. Geographically, it operates in America, EMEA, and JAPIC, with maximum revenue from America.
Hyster Yale Inc is positioned within the Industrials sector, specifically in the Farm & Heavy Construction Machinery industry. The company has a market capitalization of $612.42 million, reflecting its standing in the market.
Financial Health Analysis
Hyster Yale Inc's financial health presents a mixed picture. The company's revenue growth over the past three years has been 10%, but recent earnings have shown a significant decline, with a 1-year earnings growth of -80.6%. The gross margin stands at 18.89%, while the net margin is a modest 0.56%.
On the balance sheet, the company maintains a current ratio of 1.4 and a debt-to-equity ratio of 0.87, indicating a balanced approach to managing its liabilities. However, the quick ratio of 0.65 suggests potential liquidity challenges.
Warning signs include an Altman Z-Score of 2.77, placing the company in a grey area of financial stress. Additionally, the ROIC vs WACC indicates inefficiencies, with the return on invested capital being less than the weighted average cost of capital.
Valuation & Market Sentiment
Hyster Yale Inc's valuation metrics suggest it is trading at a potentially attractive level. The P/E ratio is 28.1, while the P/S ratio is 0.16, close to a 2-year low. The P/B ratio of 1.12 is near a 10-year low, indicating possible undervaluation.
Analyst sentiment is cautious, with a recommendation score of 2.5. Technical indicators such as the RSI of 44.39 suggest the stock is neither overbought nor oversold, while moving averages indicate a downward trend.
Institutional ownership stands at 47.56%, with insider ownership at 7.48%, reflecting a moderate level of confidence from major stakeholders.
Risk Assessment
Hyster Yale Inc's financial health grades highlight areas of concern. The Z-Score suggests financial caution, while the dividend payout ratio of 0.73 raises questions about sustainability. Sector-specific risks include the cyclical nature of the Industrials sector, which can impact demand for heavy machinery.
The company's beta of 1.76 indicates higher volatility compared to the market, which could lead to significant price fluctuations. Investors should be aware of these risks when considering Hyster Yale Inc as a potential investment.
>This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
