Stock Analysis & Valuation Oshkosh Corporation (0KDI.L)

• Previous Close: £143.72
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, £	Upside, %
Artificial intelligence (AI)	48.80	-66
Intrinsic value (DCF)	38.84	-73
Graham-Dodd Method	50.50	-65
Graham Formula	149.10	4

Strategic Investment Analysis

Company Overview

Oshkosh Corporation (LSE: 0KDI.L) is a leading global manufacturer of specialty vehicles and vehicle bodies, serving diverse industries including defense, construction, fire & emergency, and commercial sectors. Headquartered in Oshkosh, Wisconsin, the company operates through four key segments: Access Equipment, Defense, Fire & Emergency, and Commercial. Oshkosh is renowned for its innovative aerial work platforms, tactical military vehicles, firefighting apparatus, and refuse collection solutions. With a history dating back to 1917, Oshkosh has established itself as a trusted provider of mission-critical vehicles, supported by a robust distribution network of dealers and direct sales representatives. The company's strong market position is reinforced by its ability to deliver customized, high-performance vehicles tailored to the unique needs of its customers. Oshkosh's diversified portfolio and commitment to technological advancements position it as a key player in the industrial capital goods sector, driving growth through both organic innovation and strategic acquisitions.

Investment Summary

Oshkosh Corporation presents a compelling investment opportunity due to its diversified business model, strong market position, and consistent financial performance. With a market capitalization of approximately $6.27 billion and revenue of $10.73 billion, the company demonstrates solid operational scale. The diluted EPS of $10.38 and a dividend yield supported by a $1.94 per share payout reflect shareholder-friendly policies. However, investors should note the company's beta of 1.363, indicating higher volatility compared to the broader market. The defense segment provides stable government contracts, while the Access Equipment segment benefits from global construction activity. Risks include cyclical demand in construction and potential supply chain disruptions. Overall, Oshkosh's balanced growth across its segments and strong cash flow generation make it an attractive pick in the industrials sector.

Competitive Analysis

Oshkosh Corporation holds a competitive edge through its diversified product portfolio and strong brand recognition in niche markets. The company's Access Equipment segment competes with global players in the aerial work platform industry, leveraging its innovative product designs and extensive dealer network. In the Defense segment, Oshkosh's long-standing relationships with the U.S. Department of Defense provide a significant moat, with its tactical vehicles being a staple in military operations. The Fire & Emergency segment benefits from customization capabilities and a reputation for reliability, while the Commercial segment's refuse collection vehicles and concrete mixers enjoy strong demand in municipal and industrial applications. Oshkosh's competitive advantages include its vertical integration, R&D focus, and ability to secure large-scale contracts. However, the company faces intense competition in each segment, requiring continuous innovation and cost management to maintain its leadership position. Its financial strength, with $204.9 million in cash and manageable debt levels, supports ongoing investments in technology and market expansion.

Major Competitors

• Terex Corporation (TEX): Terex is a key competitor in the aerial work platforms and materials processing markets, directly competing with Oshkosh's Access Equipment segment. Terex's strengths lie in its global footprint and diverse product range, but it lacks Oshkosh's strong defense and fire & emergency segments, making its revenue streams more susceptible to construction cycles.
• Caterpillar Inc. (CAT): Caterpillar competes with Oshkosh in the construction and industrial equipment markets. While Caterpillar has a broader product portfolio and stronger brand recognition, Oshkosh's specialization in specialty vehicles provides a niche advantage. Caterpillar's larger scale offers cost advantages, but Oshkosh's focus on customization and defense contracts provides stability.
• Oshkosh Corporation (OSK): Oshkosh's primary listing on the NYSE (OSK) represents the same entity as 0KDI.L, with identical business operations and competitive positioning. The dual listing provides liquidity and access to different investor bases, but the underlying competitive dynamics remain unchanged.
• Douglas Dynamics, Inc. (PLOW): Douglas Dynamics competes with Oshkosh in the commercial snow and ice control vehicle market. While Douglas Dynamics is a leader in snowplows, Oshkosh's broader product range and larger scale provide more diversified revenue streams. Douglas Dynamics' smaller size limits its R&D and market reach compared to Oshkosh.
• H&E Equipment Services, Inc. (HEES): H&E Equipment Services competes in the equipment rental and sales market, overlapping with Oshkosh's Access Equipment segment. H&E's rental-focused model provides recurring revenue, but Oshkosh's manufacturing capabilities and defense contracts offer more stable long-term growth prospects.