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Industrials Sector Report

Industrial Machinery Industry Report

Market Cap: $1.7T
Stocks: 51
Median P/E: 23.3x
Median ROIC: 11.0%

Data sourced from SEC EDGAR filings. Report refreshed weekly.

Part of the Industrials sector.

Performance Dashboard

PeriodSector (MCW)Sector (Median)
1 Day+2.3%+0.9%
1 Week+5.1%+0.5%
1 Month
3 Months
6 Months
YTD+6.1%+0.8%
1 Year+151.8%+34.9%
3 Years+225.9%+30.6%
5 Years+232.1%+38.2%

Today's Breadth: 27 advancing · 13 declining · 2 flat

Valuation Summary

MetricMedianP25P75vs 5Y Avg
P/E23.3x14.1x33.0x+2%
P/B2.2x1.0x3.5x-9%
P/S1.6x0.6x2.8x
P/FCF16.7x8.8x24.0x
EV/EBITDA11.4x6.9x18.7x
EV/EBIT17.8x11.3x22.3x
Earnings Yield
3.8%
FCF Yield
4.3%
Below Fair Value
46% of stocks

Profitability Profile

Margins

MetricMedian5Y AvgP25P75
Gross Margin39.5%36.2%27.4%48.3%
Operating Margin11.5%4.4%17.3%
Net Margin6.5%6.2%0.3%11.1%
FCF Margin9.2%5.0%14.8%

Returns on Capital

MetricMedian5Y AvgP25P75
ROE10.1%2.3%16.2%
ROA4.2%0.2%8.3%
ROIC11.0%11.1%3.5%17.6%

Growth Metrics

Metric1Y3Y CAGR5Y CAGR
Revenue+3.5%+4.8%+7.2%
EPS+6.6%+0.5%+17.9%
Free Cash Flow+2.9%+26.8%+11.6%

All values represent sector median growth rates.

Balance Sheet Health

Debt / Equity
0.3x
Net Debt / EBITDA
0.4x
Interest Coverage
5.4x
Current Ratio
2.2x

Altman Z-Score

Safe (>3): 22 (47%)
Gray (1.8–3): 12 (26%)
Distress (<1.8): 13 (28%)

Piotroski F-Score

Strong (7–9): 13 (25%)
Moderate (4–6): 29 (57%)
Weak (0–3): 9 (18%)

Top Companies

Symbol#Mkt CapP/EEV/EBITDAROICNet MgnRev Gr.Div YldYTDQual.
ASML1$578.2B38.0x29.0x78.2%29.4%+21.1%0.7%+2.8%8/9
ASMLF2$576.0B78.2%29.4%+21.1%+2.7%5/9
LRCX3$345.1B23.3x18.7x29.1%+23.7%0.9%+19.5%6/9
BKR4$62.3B17.3x11.3x13.5%9.3%-0.3%2.0%+3.5%4/9
FTI5$31.4B19.4x9.1x31.1%9.7%+9.3%0.5%+3.7%4/9
NDSN6$15.8B27.6x19.7x11.3%17.4%+3.8%1.4%+1.2%5/9
RRX7$14.0B34.5x16.1x5.0%4.7%-1.6%1.0%+2.2%0/9
SMIN-L8$8.6B28.5x21.1x13.3%10.0%+8.3%1.8%4/9
TEX9$8.4B16.6x7.5x8.9%4.1%+5.7%0.6%+0.3%6/9
WFRD10$7.5B13.1x5.0x49.9%8.8%-10.8%1.3%-0.1%6/9
MIDD11$7.4B-8.7%+1.6%+0.1%2/9
NOV12$7.3B40.0x0.6x3.5%1.7%-1.4%3.3%+1.3%4/9
ESAB13$7.0B31.1x15.9x11.0%8.8%+3.7%0.3%+1.6%3/9
MRO-L14$7.0B-145.0x-0.1%-1.4%+6.1%0.8%1/9
SPX-L15$5.4B25.8x13.3x13.7%11.5%+1.4%2.5%4/9
ALH16$4.5B62.1%6.0%+13.3%3/9
IP-MI17$4.0B19.6x10.1x12.5%10.9%-7.7%0.8%3/9
WHD18$3.7B19.0x9.4x27.0%15.4%-4.5%1.2%+9.2%5/9
ACLS19$3.5B21.7x16.7x17.1%14.3%-17.6%+3.1%6/9
ACMR20$3.4B29.6x18.4x12.1%10.4%+15.2%+0.5%3/9

Industry Composition

IndustryStocksMarket Cap%
Special Industry Machinery, Nec15$1.5T87.4%
Oil & Gas Field Machinery & Equipment14$121.3B7.0%
General Industrial Machinery & Equipment, Nec7$38.5B2.2%
Industrial - Machinery8$28.1B1.6%
Refrigeration & Service Industry Machinery5$20.0B1.2%
Industrial Trucks, Tractors, Trailors & Stackers2$9.1B0.5%

Quality Distribution

0
1
2
3
4
5
6
7
8
9

Quality Score (0-9)

High Quality (7+)
2%
Median Piotroski F
6/9
Profitable Years
5 of 10

Dividends & Shareholder Returns

Paying Dividends
51%
Median Div Yield
1.2%
Median Buyback Yield
0.8%
Shareholder Yield
2.3%
Payout Ratio
33.3%
Div Growth (3Y)
7.1%
Div Growth (5Y)
8.7%

Strengths & Weaknesses

Strengths

No notable strengths identified.

Weaknesses

  • [Financial Health]27.7% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
  • [Quality]Only 2.0% of companies score 7+ on the quality checklist, reflecting structural challenges in achieving consistent returns across the sector.

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