MAYVILLE ENGINEERING CO INC (MEC) Stock Fundamental Analysis
NYSE:MEC - New York Stock Exchange, Inc. - US5786051079 - Common Stock - Currency: USD
Overall MEC gets a fundamental rating of 3 out of 10. We evaluated MEC against 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MEC had positive earnings in the past year.
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 has a Return On Assets (5.08%) which is comparable to the rest of the industry.
MEC has a Return On Equity (9.10%) which is comparable to the rest of the industry.
MEC has a Return On Invested Capital of 2.87%. This is in the lower half of the industry: MEC underperforms 66.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MEC is significantly below the industry average of 10.67%.
| Industry Rank | Sector 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
1.3 Margins
MEC has a Profit Margin of 4.09%. This is comparable to the rest of the industry: MEC outperforms 43.75% of its industry peers.
MEC has a worse Operating Margin (2.34%) than 69.53% of its industry peers.
In the last couple of years the Operating Margin of MEC has grown nicely.
MEC's Gross Margin of 11.78% is on the low side compared to the rest of the industry. MEC is outperformed by 86.72% of its industry peers.
In the last couple of years the Gross Margin of MEC has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MEC is destroying value.
MEC has more shares outstanding than it did 1 year ago.
MEC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MEC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.59 indicates that MEC is not a great score, but indicates only limited risk for bankruptcy at the moment.
MEC's Altman-Z score of 2.59 is on the low side compared to the rest of the industry. MEC is outperformed by 60.94% of its industry peers.
The Debt to FCF ratio of MEC is 1.03, which is an excellent value as it means it would take MEC, only 1.03 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.03, MEC belongs to the top of the industry, outperforming 86.72% of the companies in the same industry.
MEC has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MEC (0.31) is better than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.28
WACC10.38%
2.3 Liquidity
MEC has a Current Ratio of 1.67. This is a normal value and indicates that MEC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.67, MEC is not doing good in the industry: 67.19% of the companies in the same industry are doing better.
A Quick Ratio of 0.91 indicates that MEC may have some problems paying its short term obligations.
The Quick ratio of MEC (0.91) is worse than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
MEC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.22%.
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
The Earnings Per Share is expected to grow by 47.17% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 0.88% on average over the next years.
EPS Next Y86.22%
EPS Next 2Y86.61%
EPS Next 3Y47.17%
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
With a Price/Earnings ratio of 93.75, MEC can be considered very expensive at the moment.
Based on the Price/Earnings ratio, MEC is valued a bit more expensive than 72.66% of the companies in the same industry.
MEC is valuated expensively when we compare the Price/Earnings ratio to 26.52, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.46, the valuation of MEC can be described as correct.
75.00% of the companies in the same industry are more expensive than MEC, based on the Price/Forward Earnings ratio.
MEC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.25, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 93.75 | ||
| Fwd PE | 13.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MEC indicates a rather cheap valuation: MEC is cheaper than 84.38% of the companies listed 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 98.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.08 | ||
| EV/EBITDA | 7.57 |
4.3 Compensation for Growth
MEC's 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 47.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.09
PEG (5Y)N/A
EPS Next 2Y86.61%
EPS Next 3Y47.17%
5. Dividend
5.1 Amount
No dividends for MEC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15
-0.02 (-0.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners62.91%
Inst Owner Change-0.51%
Ins Owners3.57%
Ins Owner Change10.02%
Market Cap306.90M
Analysts82.86
Price Target18.36 (22.4%)
Short Float %1.61%
Short Ratio2.14
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)-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)0%
PT rev (3m)-14.29%
EPS NQ rev (1m)18.82%
EPS NQ rev (3m)-29.86%
EPS NY rev (1m)21.73%
EPS NY rev (3m)-23.81%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-3.04%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-5.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 93.75 | ||
| Fwd PE | 13.46 | ||
| P/S | 0.55 | ||
| P/FCF | 4.08 | ||
| P/OCF | 3.51 | ||
| P/B | 1.23 | ||
| P/tB | 2.86 | ||
| EV/EBITDA | 7.57 |
EPS(TTM)0.16
EY1.07%
EPS(NY)1.11
Fwd EY7.43%
FCF(TTM)3.68
FCFY24.51%
OCF(TTM)4.28
OCFY28.52%
SpS27.17
BVpS12.22
TBVpS5.24
PEG (NY)1.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.59 |
F-Score7
WACC10.38%
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 Y86.22%
EPS Next 2Y86.61%
EPS Next 3Y47.17%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.42%
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-45.14%
EBIT growth 3Y23.56%
EBIT growth 5YN/A
EBIT Next Year210.61%
EBIT Next 3Y53.94%
EBIT Next 5Y23.74%
FCF growth 1Y6266.39%
FCF growth 3YN/A
FCF growth 5Y59.2%
OCF growth 1Y86.92%
OCF growth 3Y83.81%
OCF growth 5Y21.87%