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MAYVILLE ENGINEERING CO INC (MEC) Stock Fundamental Analysis

NYSE:MEC - New York Stock Exchange, Inc. - US5786051079 - Common Stock - Currency: USD

15.3  -0.54 (-3.41%)

After market: 15.06 -0.24 (-1.57%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to MEC. MEC was compared to 127 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 decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

In the past year MEC was profitable.
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.
Each year in the past 5 years MEC had a positive operating cash flow.
MEC Yearly Net Income VS EBIT VS OCF VS FCFMEC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M 40M 60M 80M

1.2 Ratios

MEC has a Return On Assets (5.08%) which is in line with its industry peers.
MEC has a Return On Equity (9.10%) which is in line with its industry peers.
With a Return On Invested Capital value of 2.87%, MEC is not doing good in the industry: 66.14% 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 10.78%.
Industry RankSector Rank
ROA 5.08%
ROE 9.1%
ROIC 2.87%
ROA(3y)3.88%
ROA(5y)1.52%
ROE(3y)7.44%
ROE(5y)3%
ROIC(3y)4.37%
ROIC(5y)N/A
MEC Yearly ROA, ROE, ROICMEC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15

1.3 Margins

With a Profit Margin value of 4.09%, MEC perfoms like the industry average, outperforming 42.52% of the companies in the same industry.
The Operating Margin of MEC (2.34%) is worse than 70.08% of its industry peers.
MEC's Operating Margin has improved in the last couple of years.
MEC's Gross Margin of 11.78% is on the low side compared to the rest of the industry. MEC is outperformed by 86.61% of its industry peers.
In the last couple of years the Gross Margin of MEC has grown nicely.
Industry RankSector Rank
OM 2.34%
PM (TTM) 4.09%
GM 11.78%
OM growth 3Y13.84%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.8%
GM growth 5Y1.59%
MEC Yearly Profit, Operating, Gross MarginsMEC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10

5

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
The number of shares outstanding for MEC has been increased compared to 5 years ago.
The debt/assets ratio for MEC has been reduced compared to a year ago.
MEC Yearly Shares OutstandingMEC Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M
MEC Yearly Total Debt VS Total AssetsMEC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

2.2 Solvency

MEC has an Altman-Z score of 2.61. 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 2.61, MEC is in line with its industry, outperforming 43.31% of the companies in the same industry.
MEC has a debt to FCF ratio of 1.03. This is a very positive value and a sign of high solvency as it would only need 1.03 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.03, MEC belongs to the best of the industry, outperforming 85.83% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that MEC is not too dependend on debt financing.
MEC has a better Debt to Equity ratio (0.31) than 62.20% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.31
Debt/FCF 1.03
Altman-Z 2.61
ROIC/WACC0.28
WACC10.4%
MEC Yearly LT Debt VS Equity VS FCFMEC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M 200M 250M

2.3 Liquidity

A Current Ratio of 1.67 indicates that MEC should not have too much problems paying its short term obligations.
MEC has a worse Current ratio (1.67) than 66.14% of its industry peers.
MEC has a Quick Ratio of 1.67. 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 0.91, MEC is not doing good in the industry: 68.50% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.67
Quick Ratio 0.91
MEC Yearly Current Assets VS Current LiabilitesMEC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M

4

3. Growth

3.1 Past

The earnings per share for MEC have decreased strongly by -64.22% in the last year.
The Earnings Per Share has been decreasing by -7.93% on average over the past years.
MEC shows a decrease in Revenue. In the last year, the revenue decreased by -8.42%.
Measured over the past years, MEC shows a small growth in Revenue. The Revenue has been growing by 2.28% on average per year.
EPS 1Y (TTM)-64.22%
EPS 3Y-7.93%
EPS 5YN/A
EPS Q2Q%-99.37%
Revenue 1Y (TTM)-8.42%
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 45.70% on average per year.
Based on estimates for the next years, MEC will show a small growth in Revenue. The Revenue will grow by 3.18% on average per year.
EPS Next Y70.44%
EPS Next 2Y85.48%
EPS Next 3Y45.7%
EPS Next 5YN/A
Revenue Next Year0.5%
Revenue Next 2Y5.85%
Revenue Next 3Y3.74%
Revenue Next 5Y3.18%

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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
MEC Yearly Revenue VS EstimatesMEC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 200M 400M 600M
MEC Yearly EPS VS EstimatesMEC Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 1

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 95.63 indicates a quite expensive valuation of MEC.
Based on the Price/Earnings ratio, MEC is valued a bit more expensive than the industry average as 71.65% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.54, MEC is valued quite expensively.
With a Price/Forward Earnings ratio of 13.90, MEC is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MEC indicates a somewhat cheap valuation: MEC is cheaper than 77.95% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MEC to the average of the S&P500 Index (36.44), we can say MEC is valued rather cheaply.
Industry RankSector Rank
PE 95.63
Fwd PE 13.9
MEC Price Earnings VS Forward Price EarningsMEC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MEC is valued cheaper than 85.04% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MEC is valued cheaper than 98.43% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.16
EV/EBITDA 7.68
MEC Per share dataMEC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MEC's earnings are expected to grow with 45.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.36
PEG (5Y)N/A
EPS Next 2Y85.48%
EPS Next 3Y45.7%

0

5. Dividend

5.1 Amount

No dividends for MEC!.
Industry RankSector Rank
Dividend Yield N/A

MAYVILLE ENGINEERING CO INC

NYSE:MEC (7/18/2025, 8:04:00 PM)

After market: 15.06 -0.24 (-1.57%)

15.3

-0.54 (-3.41%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)05-06 2025-05-06/amc
Earnings (Next)08-05 2025-08-05/amc
Inst Owners62.39%
Inst Owner Change0.03%
Ins Owners3.86%
Ins Owner Change9.8%
Market Cap313.04M
Analysts82.5
Price Target21.76 (42.22%)
Short Float %2.95%
Short Ratio3.46
Dividend
Industry RankSector 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)-57.58%
Min EPS beat(2)-93.61%
Max EPS beat(2)-21.55%
EPS beat(4)0
Avg EPS beat(4)-38.95%
Min EPS beat(4)-93.61%
Max EPS beat(4)-7.3%
EPS beat(8)0
Avg EPS beat(8)-35.93%
EPS beat(12)1
Avg EPS beat(12)-24.56%
EPS beat(16)3
Avg EPS beat(16)66.08%
Revenue beat(2)0
Avg Revenue beat(2)-1.73%
Min Revenue beat(2)-3.25%
Max Revenue beat(2)-0.21%
Revenue beat(4)1
Avg Revenue beat(4)-4.14%
Min Revenue beat(4)-14.94%
Max Revenue beat(4)1.82%
Revenue beat(8)2
Avg Revenue beat(8)-3.4%
Revenue beat(12)5
Avg Revenue beat(12)-1.61%
Revenue beat(16)7
Avg Revenue beat(16)-1.25%
PT rev (1m)15.32%
PT rev (3m)12.28%
EPS NQ rev (1m)-14.86%
EPS NQ rev (3m)-25.88%
EPS NY rev (1m)1.89%
EPS NY rev (3m)11.42%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)1.15%
Revenue NY rev (3m)2.88%
Valuation
Industry RankSector Rank
PE 95.63
Fwd PE 13.9
P/S 0.56
P/FCF 4.16
P/OCF 3.58
P/B 1.25
P/tB 2.92
EV/EBITDA 7.68
EPS(TTM)0.16
EY1.05%
EPS(NY)1.1
Fwd EY7.2%
FCF(TTM)3.68
FCFY24.03%
OCF(TTM)4.28
OCFY27.96%
SpS27.17
BVpS12.22
TBVpS5.24
PEG (NY)1.36
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 5.08%
ROE 9.1%
ROCE 3.47%
ROIC 2.87%
ROICexc 2.88%
ROICexgc 4.64%
OM 2.34%
PM (TTM) 4.09%
GM 11.78%
FCFM 13.53%
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-Score7
Asset Turnover1.24
Health
Industry RankSector Rank
Debt/Equity 0.31
Debt/FCF 1.03
Debt/EBITDA 1.52
Cap/Depr 32.49%
Cap/Sales 2.21%
Interest Coverage 1.33
Cash Conversion 172.21%
Profit Quality 330.73%
Current Ratio 1.67
Quick Ratio 0.91
Altman-Z 2.61
F-Score7
WACC10.4%
ROIC/WACC0.28
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)-64.22%
EPS 3Y-7.93%
EPS 5YN/A
EPS Q2Q%-99.37%
EPS Next Y70.44%
EPS Next 2Y85.48%
EPS Next 3Y45.7%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.42%
Revenue growth 3Y8.54%
Revenue growth 5Y2.28%
Sales Q2Q%-15.93%
Revenue Next Year0.5%
Revenue Next 2Y5.85%
Revenue Next 3Y3.74%
Revenue Next 5Y3.18%
EBIT growth 1Y-45.14%
EBIT growth 3Y23.56%
EBIT growth 5YN/A
EBIT Next Year210.61%
EBIT Next 3Y53.94%
EBIT Next 5Y29.05%
FCF growth 1Y6266.39%
FCF growth 3YN/A
FCF growth 5Y59.2%
OCF growth 1Y86.92%
OCF growth 3Y83.81%
OCF growth 5Y21.87%