MAYVILLE ENGINEERING CO INC (MEC) Stock Fundamental Analysis
NYSE:MEC - New York Stock Exchange, Inc. - US5786051079 - Common Stock - Currency: USD
Taking everything into account, MEC scores 4 out of 10 in our fundamental rating. MEC was compared to 128 industry peers in the Machinery industry. The financial health of MEC is average, but there are quite some concerns on its profitability. MEC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year MEC has reported negative net income.
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.
In the past 5 years MEC always reported a positive cash flow from operatings.
1.2 Ratios
MEC's Return On Assets of 5.83% is fine compared to the rest of the industry. MEC outperforms 60.47% of its industry peers.
MEC has a Return On Equity (10.31%) which is comparable to the rest of the industry.
The Return On Invested Capital of MEC (4.14%) is worse than 63.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MEC is significantly below the industry average of 10.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.83% | ||
| ROE | 10.31% | ||
| ROIC | 4.14% |
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
Looking at the Profit Margin, with a value of 4.46%, MEC is in line with its industry, outperforming 45.74% of the companies in the same industry.
MEC has a worse Operating Margin (3.28%) than 66.67% of its industry peers.
MEC's Operating Margin has improved in the last couple of years.
The Gross Margin of MEC (12.22%) is worse than 85.27% of its industry peers.
In the last couple of years the Gross Margin of MEC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.28% | ||
| PM (TTM) | 4.46% | ||
| GM | 12.22% |
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.
The number of shares outstanding for MEC has been increased compared to 1 year ago.
MEC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MEC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.74 indicates that MEC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.74, MEC perfoms like the industry average, outperforming 44.19% of the companies in the same industry.
MEC has a debt to FCF ratio of 1.06. This is a very positive value and a sign of high solvency as it would only need 1.06 years to pay back of all of its debts.
The Debt to FCF ratio of MEC (1.06) is better than 86.82% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that MEC is not too dependend on debt financing.
MEC has a Debt to Equity ratio of 0.32. This is in the better half of the industry: MEC outperforms 63.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | 2.74 |
ROIC/WACC0.38
WACC10.79%
2.3 Liquidity
MEC has a Current Ratio of 1.75. This is a normal value and indicates that MEC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MEC (1.75) is worse than 65.89% of its industry peers.
A Quick Ratio of 0.90 indicates that MEC may have some problems paying its short term obligations.
With a Quick ratio value of 0.90, MEC is not doing good in the industry: 67.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
MEC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -120.00%.
Measured over the past years, MEC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -58.17% on average per year.
The Revenue has decreased by -1.16% in the past year.
MEC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.28% yearly.
EPS 1Y (TTM)-120%
EPS 3Y-58.17%
EPS 5YN/A
EPS Q2Q%-75%
Revenue 1Y (TTM)-1.16%
Revenue growth 3Y8.54%
Revenue growth 5Y2.28%
Sales Q2Q%-15.93%
3.2 Future
Based on estimates for the next years, MEC will show a very strong growth in Earnings Per Share. The EPS will grow by 223.01% on average per year.
Based on estimates for the next years, MEC will show a small growth in Revenue. The Revenue will grow by 0.88% on average per year.
EPS Next Y1531.72%
EPS Next 2Y507.91%
EPS Next 3Y223.01%
EPS Next 5YN/A
Revenue Next Year-2.25%
Revenue Next 2Y3.65%
Revenue Next 3Y2.06%
Revenue Next 5Y0.88%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for MEC. In the last year negative earnings were reported.
MEC is valuated correctly with a Price/Forward Earnings ratio of 13.75.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MEC indicates a somewhat cheap valuation: MEC is cheaper than 72.09% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.89, MEC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MEC is valued cheaper than 86.05% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MEC indicates a rather cheap valuation: MEC is cheaper than 97.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4 | ||
| EV/EBITDA | 7.02 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MEC's earnings are expected to grow with 223.01% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y507.91%
EPS Next 3Y223.01%
5. Dividend
5.1 Amount
MEC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.24
-0.2 (-1.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners62.91%
Inst Owner Change-1.62%
Ins Owners3.57%
Ins Owner Change10.02%
Market Cap311.20M
Analysts82.86
Price Target18.36 (20.47%)
Short Float %1.48%
Short Ratio1.73
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)-137.61%
Min EPS beat(2)-241.86%
Max EPS beat(2)-33.36%
EPS beat(4)0
Avg EPS beat(4)-73.04%
Min EPS beat(4)-241.86%
Max EPS beat(4)-7.3%
EPS beat(8)0
Avg EPS beat(8)-56.61%
EPS beat(12)2
Avg EPS beat(12)-31.6%
EPS beat(16)4
Avg EPS beat(16)59.59%
Revenue beat(2)0
Avg Revenue beat(2)-9.1%
Min Revenue beat(2)-14.94%
Max Revenue beat(2)-3.25%
Revenue beat(4)2
Avg Revenue beat(4)-4.04%
Min Revenue beat(4)-14.94%
Max Revenue beat(4)1.82%
Revenue beat(8)3
Avg Revenue beat(8)-3.28%
Revenue beat(12)6
Avg Revenue beat(12)-0.75%
Revenue beat(16)8
Avg Revenue beat(16)-0.98%
PT rev (1m)-5.26%
PT rev (3m)-14.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-77.21%
EPS NY rev (1m)-14.57%
EPS NY rev (3m)-37.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.82%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-5.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.75 | ||
| P/S | 0.54 | ||
| P/FCF | 4 | ||
| P/OCF | 3.47 | ||
| P/B | 1.24 | ||
| P/tB | 2.9 | ||
| EV/EBITDA | 7.02 |
EPS(TTM)-0.09
EYN/A
EPS(NY)1.11
Fwd EY7.27%
FCF(TTM)3.81
FCFY24.97%
OCF(TTM)4.4
OCFY28.86%
SpS28.48
BVpS12.33
TBVpS5.26
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.83% | ||
| ROE | 10.31% | ||
| ROCE | 5% | ||
| ROIC | 4.14% | ||
| ROICexc | 4.15% | ||
| ROICexgc | 6.68% | ||
| OM | 3.28% | ||
| PM (TTM) | 4.46% | ||
| GM | 12.22% | ||
| FCFM | 13.36% |
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-Score8
Asset Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.06 | ||
| Debt/EBITDA | 1.44 | ||
| Cap/Depr | 32.19% | ||
| Cap/Sales | 2.08% | ||
| Interest Coverage | 1.86 | ||
| Cash Conversion | 158.55% | ||
| Profit Quality | 299.25% | ||
| Current Ratio | 1.75 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 2.74 |
F-Score8
WACC10.79%
ROIC/WACC0.38
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)-120%
EPS 3Y-58.17%
EPS 5YN/A
EPS Q2Q%-75%
EPS Next Y1531.72%
EPS Next 2Y507.91%
EPS Next 3Y223.01%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.16%
Revenue growth 3Y8.54%
Revenue growth 5Y2.28%
Sales Q2Q%-15.93%
Revenue Next Year-2.25%
Revenue Next 2Y3.65%
Revenue Next 3Y2.06%
Revenue Next 5Y0.88%
EBIT growth 1Y-8.24%
EBIT growth 3Y23.56%
EBIT growth 5YN/A
EBIT Next Year220.85%
EBIT Next 3Y56.81%
EBIT Next 5Y23.74%
FCF growth 1Y226.99%
FCF growth 3YN/A
FCF growth 5Y59.2%
OCF growth 1Y122.5%
OCF growth 3Y83.81%
OCF growth 5Y21.87%