MBC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 may be a bit undervalued, certainly considering the very reasonable score on growth

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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.
MBC had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 2.75%, MBC is doing worse than 66.67% of the companies in the same industry.
MBC's Return On Equity of 5.98% is on the low side compared to the rest of the industry. MBC is outperformed by 64.29% of its industry peers.
MBC has a worse Return On Invested Capital (6.58%) 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

MBC has a worse Profit Margin (3.00%) than 64.29% of its industry peers.
In the last couple of years the Profit Margin of MBC has grown nicely.
MBC has a worse Operating Margin (8.31%) than 64.29% of its industry peers.
In the last couple of years the Operating Margin of MBC has grown nicely.
MBC has a Gross Margin of 31.31%. This is comparable to the rest of the industry: MBC outperforms 52.38% of its industry peers.
MBC's Gross Margin has improved in the last couple of years.

		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.
MBC has more shares outstanding than it did 1 year ago.
MBC has a worse debt/assets ratio than last year.

2.2 Solvency

MBC has an Altman-Z score of 2.52. This is not the best score and indicates that MBC is in the grey zone with still only limited risk for bankruptcy at the moment.
MBC has a worse Altman-Z score (2.52) than 71.43% of its industry peers.
The Debt to FCF ratio of MBC is 7.13, which is on the high side as it means it would take MBC, 7.13 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.13, MBC is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
MBC has a Debt/Equity ratio of 0.69. This is a neutral value indicating MBC is somewhat dependend on debt financing.
MBC has a Debt to Equity ratio (0.69) which is in line with its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.69
Debt/FCF	7.13
Altman-Z	2.52

ROIC/WACC0.77

WACC8.58%

2.3 Liquidity

A Current Ratio of 1.87 indicates that MBC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.87, MBC perfoms like the industry average, 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 (1.13) which is comparable to the rest of the industry.

		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.
Measured over the past 5 years, MBC shows a small growth in Earnings Per Share. The EPS has been growing by 4.01% on average per year.
The Revenue has been growing slightly by 1.77% in the past year.
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.
MBC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.63% yearly.

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

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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

MBC is valuated reasonably with a Price/Earnings ratio of 10.82.
MBC's Price/Earnings ratio is rather cheap when compared to the industry. MBC is cheaper than 90.48% of the companies in the same industry.
MBC is valuated cheaply when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.88, which indicates a very decent valuation of MBC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MBC indicates a rather cheap valuation: MBC is cheaper than 83.33% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MBC to the average of the S&P500 Index (25.57), we can say MBC is valued rather cheaply.

		Industry Rank	Sector Rank
PE	10.82
Fwd PE	11.88

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MBC indicates a rather cheap valuation: MBC is cheaper than 90.48% of the companies listed in the same industry.
90.48% of the companies in the same industry are more expensive than MBC, based on the Price/Free Cash Flow ratio.