Highlights from the Investor Conference Presentation
Highlights from the Baird Investor Conference on November 6th:
1. Outlook is good for AWP, Cranes and MHPS (this makes up a combined 75% of revenue)
2. Outlook for construction and MP are poor (stable, but will grow when Europe improves). This makes up only 25% of revenue
3. $44million/year in savings from debt paydown (this was before the most recent debt restructuring reported on the 8th)
4. Expect moderate topline growth in 2013
5. Expect significant growth in EPS and ROIC even with only moderate topline growth in 2013.
For the life of me I can't figure out why this stock is only trading at 11 times 2012 EPS estimate.
PE: I was thinking same thing, but look at all stocks (in general). PEs seem to be compressed, especially considering the low interest rates for competitive money.
But PE is a function of long term growth rates, and with economic stagnation, balance sheet improvement and margin expansion can only take you so far. One needs top line growth (big picture, not quarter to quarter.)
Market is discounting stagnant (at best) economies for the forseeable future. Till general growth returns, PEs won't expand.