As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is Oshkosh Corp (NYSE: OSK).
Oshkosh is a leading maker of access equipment, specialty vehicles, and military trucks. It serves diverse end markets, where it is typically the market share leader in North America, or, in the case of JLG aerial work platforms, a global leader. After winning the contract to make the Humvee replacement, the Joint Light Tactical Vehicle, in 2015, Oshkosh became the largest supplier of light defense trucks to the U.S. military. The company reports four segments–access equipment (49% of revenue), defense (24%), fire and emergency (15%), commercial (12%)–and it generated $8.4 billion in revenue in 2019.
A quick look at Oshkosh’s share price history (below) over the past twelve months shows that the price is down 2%. Here’s why the company is undervalued.
Market Cap: $5.34 Billion
Enterprise Value: $5.99 Billion
Operating Earnings: $575 Million
Acquirer’s Multiple: 10.43
Free Cash Flow (TTM)
Free Cash Flow: $329 Million
FCF/EV Yield: 5%
Piotroski F-Score: 6
Altman Z-Score: 3.68
Beneish M-Score: -2.83
Shareholder Yield: 3%
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