MAYVILLE ENGINEERING CO INC (MEC)
US5786051079 - Common Stock
We assign a fundamental rating of 3 out of 10 to MEC. MEC was compared to 132 industry peers in the Machinery industry. MEC has a bad profitability rating. Also its financial health evaluation is rather negative. MEC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MEC was profitable.
MEC had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MEC reported negative net income in multiple years.
Each year in the past 5 years MEC had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.58%, MEC is not doing good in the industry: 60.47% of the companies in the same industry are doing better.
MEC has a Return On Equity (3.40%) which is in line with its industry peers.
MEC has a worse Return On Invested Capital (4.19%) than 63.57% of its industry peers.
MEC had an Average Return On Invested Capital over the past 3 years of 3.96%. This is significantly below the industry average of 10.74%.
The last Return On Invested Capital (4.19%) for MEC is above the 3 year average (3.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 3.4% | ||
| ROIC | 4.19% |
ROA(3y)1.28%
ROA(5y)0.09%
ROE(3y)2.74%
ROE(5y)0.46%
ROIC(3y)3.96%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of MEC (1.33%) is worse than 63.57% of its industry peers.
MEC's Profit Margin has declined in the last couple of years.
MEC has a Operating Margin of 3.53%. This is in the lower half of the industry: MEC underperforms 67.44% of its industry peers.
MEC's Operating Margin has declined in the last couple of years.
MEC has a worse Gross Margin (11.85%) than 86.05% of its industry peers.
MEC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.53% | ||
| PM (TTM) | 1.33% | ||
| GM | 11.85% |
OM growth 3YN/A
OM growth 5Y-11.34%
PM growth 3YN/A
PM growth 5Y-23.38%
GM growth 3Y10.38%
GM growth 5Y-3.66%
2. Health
2.1 Basic Checks
MEC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MEC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MEC has more shares outstanding
Compared to 1 year ago, MEC has a worse debt to assets ratio.
2.2 Solvency
MEC has an Altman-Z score of 2.20. This is not the best score and indicates that MEC is in the grey zone with still only limited risk for bankruptcy at the moment.
MEC's Altman-Z score of 2.20 is on the low side compared to the rest of the industry. MEC is outperformed by 62.02% of its industry peers.
The Debt to FCF ratio of MEC is 6.21, which is on the high side as it means it would take MEC, 6.21 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.21, MEC perfoms like the industry average, outperforming 48.84% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that MEC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, MEC is not doing good in the industry: 65.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 6.21 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.46
WACC9.05%
2.3 Liquidity
A Current Ratio of 1.88 indicates that MEC should not have too much problems paying its short term obligations.
MEC has a Current ratio of 1.88. This is in the lower half of the industry: MEC underperforms 60.47% of its industry peers.
MEC has a Quick Ratio of 1.88. This is a bad value and indicates that MEC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.86, MEC is doing worse than 73.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
MEC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -55.43%.
MEC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.07% yearly.
Looking at the last year, MEC shows a quite strong growth in Revenue. The Revenue has grown by 9.08% in the last year.
The Revenue has been growing by 10.67% on average over the past years. This is quite good.
EPS 1Y (TTM)-55.43%
EPS 3YN/A
EPS 5Y-16.07%
EPS growth Q2Q-8.33%
Revenue 1Y (TTM)9.08%
Revenue growth 3Y18.06%
Revenue growth 5Y10.67%
Revenue growth Q2Q15.63%
3.2 Future
The Earnings Per Share is expected to grow by 53.00% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.95% on average over the next years.
EPS Next Y88.57%
EPS Next 2Y76.84%
EPS Next 3Y53%
EPS Next 5YN/A
Revenue Next Year6.43%
Revenue Next 2Y6.64%
Revenue Next 3Y4.81%
Revenue Next 5Y3.95%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MEC is valuated quite expensively with a Price/Earnings ratio of 34.29.
MEC's Price/Earnings ratio is a bit more expensive when compared to the industry. MEC is more expensive than 65.89% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.92, MEC is valued a bit more expensive.
With a Price/Forward Earnings ratio of 18.19, MEC is valued on the expensive side.
Based on the Price/Forward Earnings ratio, MEC is valued a bit cheaper than the industry average as 65.89% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, MEC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.29 | ||
| Fwd PE | 18.19 |
4.2 Price Multiples
MEC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MEC is cheaper than 85.27% of the companies in the same industry.
87.60% of the companies in the same industry are more expensive than MEC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.05 | ||
| EV/EBITDA | 7.62 |
4.3 Compensation for Growth
MEC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MEC's earnings are expected to grow with 53.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y76.84%
EPS Next 3Y53%
5. Dividend
5.1 Amount
No dividends for MEC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MAYVILLE ENGINEERING CO INC
NYSE:MEC (4/26/2024, 7:04:00 PM)
After market: 14.06 0 (0%)14.06
+0.37 (+2.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap286.26M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.29 | ||
| Fwd PE | 18.19 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 3.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.53% | ||
| PM (TTM) | 1.33% | ||
| GM | 11.85% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.88 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-55.43%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y88.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.08%
Revenue growth 3Y18.06%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y