We assign a fundamental rating of 4 out of 10 to MBC. MBC was compared to 42 industry peers in the Building Products industry. While MBC is still in line with the averages on profitability rating, there are concerns on its financial health. MBC is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year MBC was profitable.
In the past year MBC had a positive cash flow from operations.
Each year in the past 5 years MBC has been profitable.
Each year in the past 5 years MBC had a positive operating cash flow.

1.2 Ratios

The Return On Assets of MBC (2.75%) is worse than 66.67% of its industry peers.
With a Return On Equity value of 5.98%, MBC is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
The Return On Invested Capital of MBC (6.58%) is worse than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MBC is below the industry average of 12.68%.

		Industry Rank	Sector Rank
ROA	2.75%
ROE	5.98%
ROIC	6.58%

ROA(3y)6.03%

ROA(5y)5.91%

ROE(3y)13.46%

ROE(5y)10.88%

ROIC(3y)9.96%

ROIC(5y)8.67%

1.3 Margins

Looking at the Profit Margin, with a value of 3.00%, MBC is doing worse than 64.29% of the companies in the same industry.
MBC's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 8.31%, MBC is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
MBC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 31.31%, MBC is in line with its industry, outperforming 52.38% of the companies in the same industry.
In the last couple of years the Gross Margin of MBC has grown nicely.

		Industry Rank	Sector Rank
OM	8.31%
PM (TTM)	3%
GM	31.31%

OM growth 3Y7.36%

OM growth 5Y4.7%

PM growth 3Y-10%

PM growth 5Y2.03%

GM growth 3Y5.76%

GM growth 5Y2.32%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MBC is creating some value.
The number of shares outstanding for MBC has been increased compared to 1 year ago.
The debt/assets ratio for MBC is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 2.57 indicates that MBC is not a great score, but indicates only limited risk for bankruptcy at the moment.
MBC has a Altman-Z score of 2.57. This is in the lower half of the industry: MBC underperforms 66.67% of its industry peers.
MBC has a debt to FCF ratio of 7.13. This is a slightly negative value and a sign of low solvency as MBC would need 7.13 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.13, MBC is doing worse than 61.90% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that MBC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, MBC perfoms like the industry average, outperforming 40.48% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.69
Debt/FCF	7.13
Altman-Z	2.57

ROIC/WACC0.77

WACC8.55%

2.3 Liquidity

MBC has a Current Ratio of 1.87. This is a normal value and indicates that MBC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.87, MBC is in line with its industry, outperforming 42.86% of the companies in the same industry.
A Quick Ratio of 1.13 indicates that MBC should not have too much problems paying its short term obligations.
MBC has a Quick ratio of 1.13. This is comparable to the rest of the industry: MBC outperforms 40.48% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.87
Quick Ratio	1.13

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for MBC have decreased strongly by -24.32% in the last year.
MBC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.01% yearly.
MBC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.77%.
Measured over the past years, MBC shows a small growth in Revenue. The Revenue has been growing by 2.48% on average per year.

EPS 1Y (TTM)-24.32%

EPS 3Y-12.38%

EPS 5Y4.01%

EPS Q2Q%-17.5%

Revenue 1Y (TTM)1.77%

Revenue growth 3Y-1.84%

Revenue growth 5Y2.48%

Sales Q2Q%-2.67%

3.2 Future

Based on estimates for the next years, MBC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.40% on average per year.
The Revenue is expected to grow by 2.63% on average over the next years.

EPS Next Y-21.44%

EPS Next 2Y-13.07%

EPS Next 3Y9.4%

EPS Next 5YN/A

Revenue Next Year-2.4%

Revenue Next 2Y-1.28%

Revenue Next 3Y2.63%

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 11.22, which indicates a very decent valuation of MBC.
90.48% of the companies in the same industry are more expensive than MBC, based on the Price/Earnings ratio.
MBC is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.32, which indicates a correct valuation of MBC.
MBC's Price/Forward Earnings ratio is rather cheap when compared to the industry. MBC is cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.26. MBC is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	11.22
Fwd PE	12.32

4.2 Price Multiples

MBC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MBC is cheaper than 88.10% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MBC is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.