Analyst Note| Denise Molina, CFA |
Jungheinrich's third-quarter 2021 results reflected robust order demand and good margin management in the face of raw material cost inflation. Having recently adjusted our forecasts for the company's updated guidance, we are maintaining our fair value estimate. Orders outgrew revenue, in line with other industrials that have faced challenges converting order growth into revenue growth due to supply chain shortages. Orders grew 26%, more than twice the 12% revenue growth rate. High utilization rates and cost containment protected margins despite raw material cost inflation. The 8.6% EBIT margin was 260 basis points higher than the prior-year margin. The company has been executing an ongoing cost-cutting program, which is bearing fruit. We maintain our narrow moat rating.