Top 10 Manufacturing Stocks Ranked by Marvin Scores
Marvin's rules picked 10 manufacturing stocks across tools, metal fabrication, textiles and miscellaneous manufacturing. Kennametal, Snap-on and Worthington Industries have the highest overall scores in this group today.
Manufacturing companies make physical goods, from tools and equipment to metal products and industrial fabrics. Their results often depend on factory costs, demand from other businesses and how much debt they carry. That makes margins, cash generation and debt useful things to check.
This list covers 10 manufacturing stocks from four related industries. Marvin's rules chose and ranked them using scores that compare each company with others in its own industry, not with the whole market. A high score means a company looks strong against its direct peers today.
Keep in mind that the scores are a snapshot and say nothing about what a stock will do next. Check each pick's caution, such as thin margins, negative cash flow or missing data, before drawing conclusions.
The list
How Marvin ranked these stocks
Marvin included companies above a minimum size threshold and ranked them by Overall score, highest first. The group covers four related industries: Metal Fabrication, Miscellaneous Manufacturing, Textiles, and Tools & Accessories, with at most four stocks from any one industry. Scores are relative to each company's own industry, so a score reflects how a company compares with its direct peers, not with all manufacturers.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The 4 related industries in this group (Manufacturing - Metal Fabrication, Manufacturing - Miscellaneous, Manufacturing - Textiles, Manufacturing - Tools & Accessories), highest Overall score first; at most 4 per industry.
The stocks, one by one
Kennametal Inc. KMT
Kennametal has the top overall score at 95. Revenue grew 19.8% last fiscal year and operating margin was a solid 20.1%. Caution: its free cash flow margin was -3.4%, so it used more cash than it generated over that period.
Snap-on Incorporated SNA
Snap-on has a very high quality score of 97, with an operating margin of 25.4% and a free cash flow margin of 21.0%, which suggest strong profitability and cash generation. Caution: revenue growth was only 0.9% last year, which is quite modest.
Worthington Industries, Inc. WOR
Worthington Industries grew revenue 19.7% last fiscal year and turned 13.8% of sales into free cash flow, with debt-to-equity of 0.33, which is low. Caution: its operating margin of 5.6% is thin compared with others on this list.
Lincoln Electric Holdings, Inc. LECO
Lincoln Electric earned a return on equity of 35.6% and an operating margin of 17.1%, pointing to efficient, profitable operations. Caution: revenue growth was a modest 5.6%, and its opportunity score of 66 is lower than its quality score.
Mueller Industries, Inc. MLI
Mueller Industries combines a quality score of 94 with an operating margin of 23.0% and almost no debt, with debt-to-equity of 0.01. Caution: its opportunity score of 70 is more moderate, and a gross margin figure was not available.
Insteel Industries, Inc. IIIN
Insteel Industries grew revenue 22.4% last fiscal year, the fastest in this group. Caution: gross margin was only 11.8%, free cash flow margin was -1.4%, return on equity was 9.8%, and operating margin and debt figures were not available.
The Toro Company TTC
Toro turned 15.0% of sales into free cash flow and earned a return on equity of 27.2%, both healthy signs. Caution: revenue changed by -1.6% last fiscal year, meaning sales shrank, and its opportunity score is a middling 54.
ATI Inc. ATI
ATI earned a return on equity of 25.4% with an operating margin of 15.2%, which are decent profitability figures. Caution: its debt-to-equity ratio of 1.17 is the highest among these picks, and its opportunity score is only 38.
Proto Labs, Inc. PRLB
Proto Labs has a high gross margin of 45.4% and a free cash flow margin of 10.1%. Caution: return on equity was just 4.4%, operating margin was 6.6%, its opportunity score is low at 16, and no debt figure was available.
Albany International Corp. AIN
Albany International has an overall score of 34, the lowest here, though it did generate a free cash flow margin of 4.8%. Caution: revenue changed by -3.9%, operating margin was -2.4% and return on equity was -6.9%, all weak.
Common questions
Does a high Marvin score mean a stock is a good buy?
No. Marvin's scores only describe how a company compares with other companies in its industry today. They are not a prediction or a recommendation, so use them as a starting point for your own research.
Why are some figures missing for certain stocks?
Some companies do not report a particular figure in a form Marvin can use, such as gross margin or debt-to-equity. When a figure is missing, it is left out rather than guessed, so check the company's own filings for the full picture.
What should I look at when comparing manufacturing companies?
Margins show how much profit a company keeps from its sales. Free cash flow shows whether it generates real cash after investing in its business. Debt-to-equity shows how much it relies on borrowing, which matters most when demand for manufactured goods slows.
Keep reading
- Top 15 Industrials Stocks Ranked by Marvin Opportunity Score
- Top 15 Industrials Companies With the Strongest Businesses
- Top 15 Industrials Stocks Ranked by Marvin Scores
- Top 20 Companies With the Strongest Businesses
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.