MAYVILLE ENGINEERING CO INC (MEC) Stock Fundamental Analysis
USA - NYSE:MEC - US5786051079 - Common Stock
15.72 USD
+2.71 (+20.83%)
15.72 USD
0 (0%)
Taking everything into account, MEC scores 3 out of 10 in our fundamental rating. MEC was compared to 130 industry peers in the Machinery industry. MEC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MEC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year MEC has reported negative net income.
In the past year MEC had a positive cash flow from operations.
In multiple years MEC reported negative net income over the last 5 years.
In the past 5 years MEC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MEC (4.12%) is comparable to the rest of the industry.
With a Return On Equity value of 7.24%, MEC perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
With a Return On Invested Capital value of 1.12%, MEC is not doing good in the industry: 70.77% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for MEC is significantly below the industry average of 10.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.12% | ||
| ROE | 7.24% | ||
| ROIC | 1.12% |
ROA(3y)3.88%
ROA(5y)1.52%
ROE(3y)7.44%
ROE(5y)3%
ROIC(3y)4.37%
ROIC(5y)N/A
1.3 Margins
MEC has a Profit Margin (3.41%) which is comparable to the rest of the industry.
Looking at the Operating Margin, with a value of 0.94%, MEC is doing worse than 70.77% of the companies in the same industry.
In the last couple of years the Operating Margin of MEC has grown nicely.
With a Gross Margin value of 10.83%, MEC is not doing good in the industry: 88.46% of the companies in the same industry are doing better.
MEC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.94% | ||
| PM (TTM) | 3.41% | ||
| GM | 10.83% |
OM growth 3Y13.84%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.8%
GM growth 5Y1.59%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MEC is destroying value.
Compared to 1 year ago, MEC has more shares outstanding
Compared to 5 years ago, MEC has more shares outstanding
The debt/assets ratio for MEC has been reduced compared to a year ago.
2.2 Solvency
MEC has an Altman-Z score of 2.41. 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.
Looking at the Altman-Z score, with a value of 2.41, MEC is doing worse than 60.00% of the companies in the same industry.
The Debt to FCF ratio of MEC is 1.01, which is an excellent value as it means it would take MEC, only 1.01 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.01, MEC belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
A Debt/Equity ratio of 0.28 indicates that MEC is not too dependend on debt financing.
MEC's Debt to Equity ratio of 0.28 is fine compared to the rest of the industry. MEC outperforms 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.11
WACC10.04%
2.3 Liquidity
A Current Ratio of 1.63 indicates that MEC should not have too much problems paying its short term obligations.
MEC has a worse Current ratio (1.63) than 67.69% of its industry peers.
MEC has a Quick Ratio of 1.63. This is a bad value and indicates that MEC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.86, MEC is not doing good in the industry: 72.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| 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 -112.55%.
Measured over the past years, MEC shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.93% on average per year.
The Revenue for MEC has decreased by -16.95% in the past year. This is quite bad
The Revenue has been growing slightly by 2.28% on average over the past years.
EPS 1Y (TTM)-112.55%
EPS 3Y-7.93%
EPS 5YN/A
EPS Q2Q%-127.78%
Revenue 1Y (TTM)-16.95%
Revenue growth 3Y8.54%
Revenue growth 5Y2.28%
Sales Q2Q%-19.13%
3.2 Future
The Earnings Per Share is expected to grow by 32.92% on average over the next years. This is a very strong growth
MEC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.02% yearly.
EPS Next Y-128.41%
EPS Next 2Y60.55%
EPS Next 3Y32.92%
EPS Next 5YN/A
Revenue Next Year-7.52%
Revenue Next 2Y4.42%
Revenue Next 3Y3.18%
Revenue Next 5Y2.02%
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.
4. Valuation
4.1 Price/Earnings Ratio
MEC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 19.06, MEC is valued on the expensive side.
Based on the Price/Forward Earnings ratio, MEC is valued a bit cheaper than 70.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.18. MEC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.06 |
4.2 Price Multiples
89.23% of the companies in the same industry are more expensive than MEC, based on the Enterprise Value to EBITDA ratio.
99.23% 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 | 4.66 | ||
| EV/EBITDA | 7.76 |
4.3 Compensation for Growth
MEC's earnings are expected to grow with 32.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y60.55%
EPS Next 3Y32.92%
5. Dividend
5.1 Amount
No dividends for MEC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.72
+2.71 (+20.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners63.82%
Inst Owner Change-0.26%
Ins Owners4.02%
Ins Owner Change1.89%
Market Cap319.43M
Analysts85
Price Target18.7 (18.96%)
Short Float %4.11%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-146.56%
Min EPS beat(2)-199.51%
Max EPS beat(2)-93.61%
EPS beat(4)0
Avg EPS beat(4)-87.01%
Min EPS beat(4)-199.51%
Max EPS beat(4)-21.55%
EPS beat(8)0
Avg EPS beat(8)-54.67%
EPS beat(12)1
Avg EPS beat(12)-40.6%
EPS beat(16)3
Avg EPS beat(16)54.73%
Revenue beat(2)0
Avg Revenue beat(2)-2.63%
Min Revenue beat(2)-5.05%
Max Revenue beat(2)-0.21%
Revenue beat(4)0
Avg Revenue beat(4)-5.86%
Min Revenue beat(4)-14.94%
Max Revenue beat(4)-0.21%
Revenue beat(8)2
Avg Revenue beat(8)-3.36%
Revenue beat(12)5
Avg Revenue beat(12)-1.95%
Revenue beat(16)7
Avg Revenue beat(16)-1.4%
PT rev (1m)0%
PT rev (3m)-14.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-91.08%
EPS NY rev (1m)-212.5%
EPS NY rev (3m)-116.67%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-10.57%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-7.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.06 | ||
| P/S | 0.61 | ||
| P/FCF | 4.66 | ||
| P/OCF | 4.03 | ||
| P/B | 1.29 | ||
| P/tB | 3.02 | ||
| EV/EBITDA | 7.76 |
EPS(TTM)-0.07
EYN/A
EPS(NY)0.82
Fwd EY5.25%
FCF(TTM)3.38
FCFY21.47%
OCF(TTM)3.9
OCFY24.8%
SpS25.82
BVpS12.15
TBVpS5.21
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.12% | ||
| ROE | 7.24% | ||
| ROCE | 1.35% | ||
| ROIC | 1.12% | ||
| ROICexc | 1.12% | ||
| ROICexgc | 1.83% | ||
| OM | 0.94% | ||
| PM (TTM) | 3.41% | ||
| GM | 10.83% | ||
| FCFM | 13.07% |
ROA(3y)3.88%
ROA(5y)1.52%
ROE(3y)7.44%
ROE(5y)3%
ROIC(3y)4.37%
ROIC(5y)N/A
ROICexc(3y)4.37%
ROICexc(5y)N/A
ROICexgc(3y)6.82%
ROICexgc(5y)N/A
ROCE(3y)5.27%
ROCE(5y)N/A
ROICexcg growth 3Y12.77%
ROICexcg growth 5YN/A
ROICexc growth 3Y14.37%
ROICexc growth 5YN/A
OM growth 3Y13.84%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.8%
GM growth 5Y1.59%
F-Score6
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.01 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 27.96% | ||
| Cap/Sales | 2.03% | ||
| Interest Coverage | 0.62 | ||
| Cash Conversion | 184.41% | ||
| Profit Quality | 383.83% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.41 |
F-Score6
WACC10.04%
ROIC/WACC0.11
Cap/Depr(3y)93.16%
Cap/Depr(5y)85.48%
Cap/Sales(3y)5.26%
Cap/Sales(5y)5.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-112.55%
EPS 3Y-7.93%
EPS 5YN/A
EPS Q2Q%-127.78%
EPS Next Y-128.41%
EPS Next 2Y60.55%
EPS Next 3Y32.92%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.95%
Revenue growth 3Y8.54%
Revenue growth 5Y2.28%
Sales Q2Q%-19.13%
Revenue Next Year-7.52%
Revenue Next 2Y4.42%
Revenue Next 3Y3.18%
Revenue Next 5Y2.02%
EBIT growth 1Y-82.11%
EBIT growth 3Y23.56%
EBIT growth 5YN/A
EBIT Next Year168.32%
EBIT Next 3Y57.98%
EBIT Next 5Y26.31%
FCF growth 1Y990.68%
FCF growth 3YN/A
FCF growth 5Y59.2%
OCF growth 1Y156.52%
OCF growth 3Y83.81%
OCF growth 5Y21.87%