MESA LABORATORIES INC (MLAB) Stock Fundamental Analysis
NASDAQ:MLAB - Nasdaq - US59064R1095 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to MLAB. MLAB was compared to 55 industry peers in the Life Sciences Tools & Services industry. There are concerns on the financial health of MLAB while its profitability can be described as average. MLAB has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year MLAB was profitable.
MLAB had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MLAB reported negative net income in multiple years.
In the past 5 years MLAB always reported a positive cash flow from operatings.
1.2 Ratios
MLAB has a better Return On Assets (-0.46%) than 65.45% of its industry peers.
MLAB's Return On Equity of -1.24% is fine compared to the rest of the industry. MLAB outperforms 65.45% of its industry peers.
The Return On Invested Capital of MLAB (4.79%) is better than 65.45% of its industry peers.
MLAB had an Average Return On Invested Capital over the past 3 years of 1.90%. This is significantly below the industry average of 13.60%.
The last Return On Invested Capital (4.79%) for MLAB is above the 3 year average (1.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.46% | ||
| ROE | -1.24% | ||
| ROIC | 4.79% |
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
With a decent Operating Margin value of 6.78%, MLAB is doing good in the industry, outperforming 61.82% of the companies in the same industry.
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 62.61%, MLAB belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
MLAB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.78% | ||
| PM (TTM) | N/A | ||
| GM | 62.61% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MLAB is destroying value.
The number of shares outstanding for MLAB has been increased compared to 1 year ago.
The number of shares outstanding for MLAB has been increased compared to 5 years ago.
The debt/assets ratio for MLAB has been reduced compared to a year ago.
2.2 Solvency
MLAB has an Altman-Z score of 1.13. This is a bad value and indicates that MLAB is not financially healthy and even has some risk of bankruptcy.
MLAB has a Altman-Z score of 1.13. This is in the lower half of the industry: MLAB underperforms 61.82% of its industry peers.
MLAB has a debt to FCF ratio of 4.21. This is a neutral value as MLAB would need 4.21 years to pay back of all of its debts.
MLAB has a better Debt to FCF ratio (4.21) than 70.91% of its industry peers.
MLAB has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
MLAB has a Debt to Equity ratio of 0.48. This is in the lower half of the industry: MLAB underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 4.21 | ||
| Altman-Z | 1.13 |
ROIC/WACC0.49
WACC9.8%
2.3 Liquidity
A Current Ratio of 0.63 indicates that MLAB may have some problems paying its short term obligations.
MLAB has a Current ratio of 0.63. This is amonst the worse of the industry: MLAB underperforms 94.55% of its industry peers.
MLAB has a Quick Ratio of 0.63. This is a bad value and indicates that MLAB is not financially healthy enough and could expect problems in meeting its short term obligations.
MLAB has a Quick ratio of 0.47. This is amonst the worse of the industry: MLAB underperforms 94.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
MLAB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -98.14%.
MLAB shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -39.16% yearly.
MLAB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.46%.
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)-98.14%
EPS 3Y-62.71%
EPS 5Y-39.16%
EPS Q2Q%-135.41%
Revenue 1Y (TTM)11.46%
Revenue growth 3Y9.35%
Revenue growth 5Y15.41%
Sales Q2Q%5.49%
3.2 Future
Based on estimates for the next years, MLAB will show a very strong growth in Earnings Per Share. The EPS will grow by 403.31% on average per year.
The Revenue is expected to grow by 5.16% on average over the next years.
EPS Next Y2275.14%
EPS Next 2Y778.38%
EPS Next 3Y403.31%
EPS Next 5YN/A
Revenue Next Year4.4%
Revenue Next 2Y5.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
MLAB is valuated quite expensively with a Price/Earnings ratio of 1477.14.
MLAB's Price/Earnings ratio is in line with the industry average.
MLAB's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.45.
MLAB is valuated quite expensively with a Price/Forward Earnings ratio of 62.19.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MLAB is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, MLAB is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1477.14 | ||
| Fwd PE | 62.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MLAB is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MLAB is valued cheaper than 92.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.27 | ||
| EV/EBITDA | 17.43 |
4.3 Compensation for Growth
MLAB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MLAB has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MLAB's earnings are expected to grow with 403.31% in the coming years.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y778.38%
EPS Next 3Y403.31%
5. Dividend
5.1 Amount
MLAB has a yearly dividend return of 0.66%, which is pretty low.
Compared to an average industry Dividend Yield of 0.51, MLAB pays a better dividend. On top of this MLAB pays more dividend than 98.18% of the companies listed in the same industry.
With a Dividend Yield of 0.66, MLAB pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
The dividend of MLAB decreases each year by -0.50%.
MLAB has paid a dividend for at least 10 years, which is 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-175.68%
EPS Next 2Y778.38%
EPS Next 3Y403.31%
103.4
+2.77 (+2.75%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.48%
Inst Owner Change0.74%
Ins Owners4.56%
Ins Owner Change2.6%
Market Cap561.46M
Analysts78
Price Target124.1 (20.02%)
Short Float %3.6%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend0.64
Dividend Growth(5Y)-0.5%
DP-175.68%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-166.14%
Min EPS beat(2)-217.83%
Max EPS beat(2)-114.45%
EPS beat(4)1
Avg EPS beat(4)-72.46%
Min EPS beat(4)-217.83%
Max EPS beat(4)85.76%
EPS beat(8)3
Avg EPS beat(8)303.76%
EPS beat(12)4
Avg EPS beat(12)196.96%
EPS beat(16)7
Avg EPS beat(16)160.77%
Revenue beat(2)1
Avg Revenue beat(2)1.93%
Min Revenue beat(2)-0.98%
Max Revenue beat(2)4.83%
Revenue beat(4)2
Avg Revenue beat(4)1.03%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)4.83%
Revenue beat(8)3
Avg Revenue beat(8)-0.6%
Revenue beat(12)4
Avg Revenue beat(12)-1.29%
Revenue beat(16)7
Avg Revenue beat(16)0.59%
PT rev (1m)-14.12%
PT rev (3m)-18.89%
EPS NQ rev (1m)-66.52%
EPS NQ rev (3m)-66.52%
EPS NY rev (1m)-61.56%
EPS NY rev (3m)-76.26%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1477.14 | ||
| Fwd PE | 62.19 | ||
| P/S | 2.33 | ||
| P/FCF | 13.27 | ||
| P/OCF | 11.99 | ||
| P/B | 3.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.43 |
EPS(TTM)0.07
EY0.07%
EPS(NY)1.66
Fwd EY1.61%
FCF(TTM)7.79
FCFY7.54%
OCF(TTM)8.62
OCFY8.34%
SpS44.38
BVpS29.43
TBVpS-21.88
PEG (NY)0.65
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.46% | ||
| ROE | -1.24% | ||
| ROCE | 6.06% | ||
| ROIC | 4.79% | ||
| ROICexc | 5.33% | ||
| ROICexgc | N/A | ||
| OM | 6.78% | ||
| PM (TTM) | N/A | ||
| GM | 62.61% | ||
| FCFM | 17.56% |
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-Score6
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 4.21 | ||
| Debt/EBITDA | 1.88 | ||
| Cap/Depr | 18.34% | ||
| Cap/Sales | 1.87% | ||
| Interest Coverage | 1.47 | ||
| Cash Conversion | 114.55% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 1.13 |
F-Score6
WACC9.8%
ROIC/WACC0.49
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)-98.14%
EPS 3Y-62.71%
EPS 5Y-39.16%
EPS Q2Q%-135.41%
EPS Next Y2275.14%
EPS Next 2Y778.38%
EPS Next 3Y403.31%
EPS Next 5YN/A
Revenue 1Y (TTM)11.46%
Revenue growth 3Y9.35%
Revenue growth 5Y15.41%
Sales Q2Q%5.49%
Revenue Next Year4.4%
Revenue Next 2Y5.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y563.53%
EBIT growth 3Y51.48%
EBIT growth 5Y15.93%
EBIT Next Year199.84%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1.79%
FCF growth 3Y6.74%
FCF growth 5Y10.67%
OCF growth 1Y6.06%
OCF growth 3Y6.07%
OCF growth 5Y11.64%