MESA LABORATORIES INC (MLAB) Stock Fundamental Analysis
USA - NASDAQ:MLAB - US59064R1095 - Common Stock
68.2 USD
-3.75 (-5.21%)
68.2 USD
0 (0%)
Overall MLAB gets a fundamental rating of 4 out of 10. We evaluated MLAB against 56 industry peers in the Life Sciences Tools & Services industry. While MLAB is still in line with the averages on profitability rating, there are concerns on its financial health. MLAB has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
MLAB had positive earnings in the past year.
MLAB had a positive operating cash flow in the past year.
In multiple years MLAB reported negative net income over the last 5 years.
MLAB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.14%, MLAB is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
With a decent Return On Equity value of -0.36%, MLAB is doing good in the industry, outperforming 62.50% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.81%, MLAB is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MLAB is significantly below the industry average of 14.93%.
The last Return On Invested Capital (3.81%) for MLAB is above the 3 year average (1.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.14% | ||
| ROE | -0.36% | ||
| ROIC | 3.81% |
ROA(3y)-19.07%
ROA(5y)-11.28%
ROE(3y)-58.62%
ROE(5y)-34.92%
ROIC(3y)1.9%
ROIC(5y)1.6%
1.3 Margins
MLAB's Operating Margin of 5.70% is fine compared to the rest of the industry. MLAB outperforms 62.50% of its industry peers.
In the last couple of years the Operating Margin of MLAB has remained more or less at the same level.
With an excellent Gross Margin value of 62.12%, MLAB belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
MLAB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.7% | ||
| PM (TTM) | N/A | ||
| GM | 62.12% |
OM growth 3Y38.53%
OM growth 5Y0.45%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.88%
GM growth 5Y2.57%
2. Health
2.1 Basic Checks
MLAB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MLAB has been increased compared to 1 year ago.
MLAB has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MLAB has an improved debt to assets ratio.
2.2 Solvency
MLAB has an Altman-Z score of 0.83. This is a bad value and indicates that MLAB is not financially healthy and even has some risk of bankruptcy.
MLAB's Altman-Z score of 0.83 is on the low side compared to the rest of the industry. MLAB is outperformed by 60.71% of its industry peers.
The Debt to FCF ratio of MLAB is 5.38, which is a neutral value as it means it would take MLAB, 5.38 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.38, MLAB is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that MLAB is not too dependend on debt financing.
MLAB has a worse Debt to Equity ratio (0.46) than 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 5.38 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.37
WACC10.2%
2.3 Liquidity
MLAB has a Current Ratio of 0.66. This is a bad value and indicates that MLAB is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.66, MLAB is doing worse than 96.43% of the companies in the same industry.
MLAB has a Quick Ratio of 0.66. This is a bad value and indicates that MLAB is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of MLAB (0.47) is worse than 94.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The earnings per share for MLAB have decreased strongly by -98.30% in the last year.
MLAB shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -39.16% yearly.
The Revenue has grown by 8.33% in the past year. This is quite good.
MLAB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.41% yearly.
EPS 1Y (TTM)-98.3%
EPS 3Y-62.71%
EPS 5Y-39.16%
EPS Q2Q%1.19%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y9.35%
Revenue growth 5Y15.41%
Sales Q2Q%2.36%
3.2 Future
The Earnings Per Share is expected to grow by 231.94% on average over the next years. This is a very strong growth
Based on estimates for the next years, MLAB will show a small growth in Revenue. The Revenue will grow by 4.64% on average per year.
EPS Next Y2471.86%
EPS Next 2Y369.85%
EPS Next 3Y231.94%
EPS Next 5YN/A
Revenue Next Year3.51%
Revenue Next 2Y4.37%
Revenue Next 3Y4.64%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 852.50, which means the current valuation is very expensive for MLAB.
MLAB's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of MLAB to the average of the S&P500 Index (27.76), we can say MLAB is valued expensively.
A Price/Forward Earnings ratio of 44.13 indicates a quite expensive valuation of MLAB.
The rest of the industry has a similar Price/Forward Earnings ratio as MLAB.
The average S&P500 Price/Forward Earnings ratio is at 23.21. MLAB is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 852.5 | ||
| Fwd PE | 44.13 |
4.2 Price Multiples
87.50% of the companies in the same industry are more expensive than MLAB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MLAB is valued cheaper than 98.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.15 | ||
| EV/EBITDA | 14.31 |
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.
The decent profitability rating of MLAB may justify a higher PE ratio.
A more expensive valuation may be justified as MLAB's earnings are expected to grow with 231.94% in the coming years.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y369.85%
EPS Next 3Y231.94%
5. Dividend
5.1 Amount
MLAB has a yearly dividend return of 0.90%, which is pretty low.
In the last 3 months the price of MLAB has falen by -21.08%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 0.51, MLAB pays a better dividend. On top of this MLAB pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, MLAB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
The dividend of MLAB decreases each year by -0.50%.
MLAB has been paying a dividend for at least 10 years, so it has a reliable track record.
MLAB has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.5%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
MLAB has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-560.97%
EPS Next 2Y369.85%
EPS Next 3Y231.94%
68.2
-3.75 (-5.21%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.24%
Inst Owner Change0%
Ins Owners5.28%
Ins Owner Change4.19%
Market Cap375.10M
Analysts80
Price Target90.27 (32.36%)
Short Float %8.02%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend0.64
Dividend Growth(5Y)-0.5%
DP-560.97%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-63.49%
Min EPS beat(2)-217.83%
Max EPS beat(2)90.84%
EPS beat(4)1
Avg EPS beat(4)-71.19%
Min EPS beat(4)-217.83%
Max EPS beat(4)90.84%
EPS beat(8)4
Avg EPS beat(8)363.88%
EPS beat(12)5
Avg EPS beat(12)215.08%
EPS beat(16)7
Avg EPS beat(16)149.42%
Revenue beat(2)0
Avg Revenue beat(2)-2.31%
Min Revenue beat(2)-3.63%
Max Revenue beat(2)-0.98%
Revenue beat(4)1
Avg Revenue beat(4)-0.45%
Min Revenue beat(4)-3.63%
Max Revenue beat(4)4.83%
Revenue beat(8)3
Avg Revenue beat(8)-0.52%
Revenue beat(12)4
Avg Revenue beat(12)-1.1%
Revenue beat(16)6
Avg Revenue beat(16)0.34%
PT rev (1m)0%
PT rev (3m)-27.26%
EPS NQ rev (1m)-28.36%
EPS NQ rev (3m)-23.81%
EPS NY rev (1m)-4.77%
EPS NY rev (3m)8.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 852.5 | ||
| Fwd PE | 44.13 | ||
| P/S | 1.55 | ||
| P/FCF | 11.15 | ||
| P/OCF | 9.8 | ||
| P/B | 2.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.31 |
EPS(TTM)0.08
EY0.12%
EPS(NY)1.55
Fwd EY2.27%
FCF(TTM)6.12
FCFY8.97%
OCF(TTM)6.96
OCFY10.2%
SpS44.06
BVpS31.36
TBVpS-20.54
PEG (NY)0.34
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.14% | ||
| ROE | -0.36% | ||
| ROCE | 4.83% | ||
| ROIC | 3.81% | ||
| ROICexc | 4.12% | ||
| ROICexgc | N/A | ||
| OM | 5.7% | ||
| PM (TTM) | N/A | ||
| GM | 62.12% | ||
| FCFM | 13.89% |
ROA(3y)-19.07%
ROA(5y)-11.28%
ROE(3y)-58.62%
ROE(5y)-34.92%
ROIC(3y)1.9%
ROIC(5y)1.6%
ROICexc(3y)2.1%
ROICexc(5y)2.03%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)2.4%
ROCE(5y)2.02%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y106.13%
ROICexc growth 5Y21.15%
OM growth 3Y38.53%
OM growth 5Y0.45%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.88%
GM growth 5Y2.57%
F-Score5
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 5.38 | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | 18.45% | ||
| Cap/Sales | 1.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.53% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 0.83 |
F-Score5
WACC10.2%
ROIC/WACC0.37
Cap/Depr(3y)13.3%
Cap/Depr(5y)13.77%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-98.3%
EPS 3Y-62.71%
EPS 5Y-39.16%
EPS Q2Q%1.19%
EPS Next Y2471.86%
EPS Next 2Y369.85%
EPS Next 3Y231.94%
EPS Next 5YN/A
Revenue 1Y (TTM)8.33%
Revenue growth 3Y9.35%
Revenue growth 5Y15.41%
Sales Q2Q%2.36%
Revenue Next Year3.51%
Revenue Next 2Y4.37%
Revenue Next 3Y4.64%
Revenue Next 5YN/A
EBIT growth 1Y58.81%
EBIT growth 3Y51.48%
EBIT growth 5Y15.93%
EBIT Next Year171.2%
EBIT Next 3Y46.94%
EBIT Next 5YN/A
FCF growth 1Y-6.91%
FCF growth 3Y6.74%
FCF growth 5Y10.67%
OCF growth 1Y-6.04%
OCF growth 3Y6.07%
OCF growth 5Y11.64%