StockStory Flags Cash Burn and Weak EPS Growth at Columbus McKinnon

StockStory is cautious on Columbus McKinnon, citing slow earnings growth, a falling free-cash-flow margin and cash burn. The publisher said the company’s earnings per share grew at a 6% annual rate over five years, below revenue growth of 15.5%.

The company’s free-cash-flow margin fell 11.8 percentage points over the same period, according to StockStory. Its margin over the trailing 12 months was negative 8.2%.

StockStory also reported that Columbus McKinnon used $122.8 million in cash over the past year. The company had $109.1 million in cash and $2.40 billion in debt, the publisher said.

The analysis warned that continued cash burn could lead the company to seek more capital, potentially diluting shareholders. StockStory said it would remain cautious until Columbus McKinnon produces consistent free cash flow or announced financing plans appear on its balance sheet.

The publisher noted the shares had gained 16.4% in six months, compared with a 21.1% rise for the S&P 500. It also described the stock’s forward price-to-earnings ratio as 8.2, but argued that the company’s financial risks could outweigh that valuation.