MESA LABORATORIES INC (MLAB) Stock Fundamental Analysis
NASDAQ:MLAB - Nasdaq - US59064R1095 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to MLAB. MLAB was compared to 55 industry peers in the Life Sciences Tools & Services industry. MLAB has a medium profitability rating, but doesn't score so well on its financial health evaluation. MLAB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MLAB was profitable.
In the past year MLAB had a positive cash flow from operations.
MLAB had positive earnings in 4 of the past 5 years.
In the past 5 years MLAB always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MLAB (-57.06%) is worse than 83.64% of its industry peers.
Looking at the Return On Equity, with a value of -160.71%, MLAB is doing worse than 80.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.09%, MLAB is in the better half of the industry, outperforming 67.27% of the companies in the same industry.
MLAB had an Average Return On Invested Capital over the past 3 years of 0.49%. This is significantly below the industry average of 13.60%.
The 3 year average ROIC (0.49%) for MLAB is below the current ROIC(5.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -57.06% | ||
| ROE | -160.71% | ||
| ROIC | 5.09% |
ROA(3y)-18.83%
ROA(5y)-11.13%
ROE(3y)-58.05%
ROE(5y)-34.55%
ROIC(3y)0.49%
ROIC(5y)0.96%
1.3 Margins
With a decent Operating Margin value of 7.62%, 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 declined.
The Gross Margin of MLAB (62.68%) is better than 89.09% of its industry peers.
In the last couple of years the Gross Margin of MLAB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.62% | ||
| PM (TTM) | N/A | ||
| GM | 62.68% |
OM growth 3Y-50.43%
OM growth 5Y-42.03%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.74%
GM growth 5Y0.85%
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.
Compared to 1 year ago, MLAB has about the same amount of shares outstanding.
MLAB has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MLAB is higher compared to a year ago.
2.2 Solvency
MLAB has an Altman-Z score of 1.14. 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 1.14 is in line compared to the rest of the industry. MLAB outperforms 43.64% of its industry peers.
The Debt to FCF ratio of MLAB is 4.55, which is a neutral value as it means it would take MLAB, 4.55 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MLAB (4.55) is better than 67.27% of its industry peers.
MLAB has a Debt/Equity ratio of 0.61. This is a neutral value indicating MLAB is somewhat dependend on debt financing.
MLAB has a worse Debt to Equity ratio (0.61) than 65.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.55 | ||
| Altman-Z | 1.14 |
ROIC/WACC0.53
WACC9.53%
2.3 Liquidity
MLAB has a Current Ratio of 0.71. 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 Current ratio of 0.71. This is amonst the worse of the industry: MLAB underperforms 94.55% of its industry peers.
A Quick Ratio of 0.53 indicates that MLAB may have some problems paying its short term obligations.
With a Quick ratio value of 0.53, MLAB is not doing good in the industry: 94.55% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 2888.24% over the past year.
The Earnings Per Share has been growing slightly by 2.64% on average over the past years.
The Revenue has grown by 11.68% in the past year. This is quite good.
Measured over the past years, MLAB shows a quite strong growth in Revenue. The Revenue has been growing by 15.96% on average per year.
EPS 1Y (TTM)2888.24%
EPS 3Y86.46%
EPS 5Y2.64%
EPS Q2Q%-166.15%
Revenue 1Y (TTM)11.68%
Revenue growth 3Y17.31%
Revenue growth 5Y15.96%
Sales Q2Q%17.52%
3.2 Future
MLAB is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -15.43% yearly.
MLAB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.73% yearly.
EPS Next Y-68.8%
EPS Next 2Y7.25%
EPS Next 3Y-15.43%
EPS Next 5YN/A
Revenue Next Year13.02%
Revenue Next 2Y8.8%
Revenue Next 3Y7.73%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
MLAB is valuated rather expensively with a Price/Earnings ratio of 19.81.
Compared to the rest of the industry, the Price/Earnings ratio of MLAB indicates a somewhat cheap valuation: MLAB is cheaper than 78.18% of the companies listed in the same industry.
MLAB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.25.
With a Price/Forward Earnings ratio of 23.27, MLAB is valued on the expensive side.
Based on the Price/Forward Earnings ratio, MLAB is valued a bit cheaper than the industry average as 70.91% of the companies are valued more expensively.
MLAB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.81 | ||
| Fwd PE | 23.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MLAB is valued a bit cheaper than the industry average as 78.18% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MLAB indicates a rather cheap valuation: MLAB is cheaper than 92.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.71 | ||
| EV/EBITDA | 17.16 |
4.3 Compensation for Growth
MLAB's earnings are expected to decrease with -15.43% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)7.49
EPS Next 2Y7.25%
EPS Next 3Y-15.43%
5. Dividend
5.1 Amount
MLAB has a yearly dividend return of 0.61%, which is pretty low.
In the last 3 months the price of MLAB has falen by -27.81%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
MLAB's Dividend Yield is rather good when compared to the industry average which is at 0.53. MLAB pays more dividend than 94.55% of the companies in the same industry.
With a Dividend Yield of 0.61, MLAB pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
The dividend of MLAB decreases each year by -0.01%.
MLAB has been paying a dividend for at least 10 years, so it has a reliable track record.
MLAB has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.01%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
The earnings of MLAB are negative and hence is the payout ratio. MLAB will probably not be able to sustain this dividend level.
MLAB's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-1.39%
EPS Next 2Y7.25%
EPS Next 3Y-15.43%
100.62
-4.02 (-3.84%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners95.69%
Inst Owner Change0.74%
Ins Owners4.58%
Ins Owner Change0%
Market Cap546.37M
Analysts78
Price Target144.5 (43.61%)
Short Float %3.92%
Short Ratio4.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend0.64
Dividend Growth(5Y)-0.01%
DP-1.39%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-78.88%
Min EPS beat(2)-114.45%
Max EPS beat(2)-43.31%
EPS beat(4)2
Avg EPS beat(4)795.58%
Min EPS beat(4)-114.45%
Max EPS beat(4)3254.31%
EPS beat(8)3
Avg EPS beat(8)322.16%
EPS beat(12)4
Avg EPS beat(12)200.99%
EPS beat(16)8
Avg EPS beat(16)185.92%
Revenue beat(2)1
Avg Revenue beat(2)1.4%
Min Revenue beat(2)-2.04%
Max Revenue beat(2)4.83%
Revenue beat(4)3
Avg Revenue beat(4)2.39%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)4.83%
Revenue beat(8)3
Avg Revenue beat(8)-1.1%
Revenue beat(12)5
Avg Revenue beat(12)-0.86%
Revenue beat(16)8
Avg Revenue beat(16)0.99%
PT rev (1m)0%
PT rev (3m)-5.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-81.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.81 | ||
| Fwd PE | 23.27 | ||
| P/S | 2.3 | ||
| P/FCF | 12.71 | ||
| P/OCF | 11.62 | ||
| P/B | 3.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.16 |
EPS(TTM)5.08
EY5.05%
EPS(NY)4.32
Fwd EY4.3%
FCF(TTM)7.92
FCFY7.87%
OCF(TTM)8.66
OCFY8.61%
SpS43.78
BVpS28.58
TBVpS-22.12
PEG (NY)N/A
PEG (5Y)7.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -57.06% | ||
| ROE | -160.71% | ||
| ROCE | 6.44% | ||
| ROIC | 5.09% | ||
| ROICexc | 5.72% | ||
| ROICexgc | N/A | ||
| OM | 7.62% | ||
| PM (TTM) | N/A | ||
| GM | 62.68% | ||
| FCFM | 18.09% |
ROA(3y)-18.83%
ROA(5y)-11.13%
ROE(3y)-58.05%
ROE(5y)-34.55%
ROIC(3y)0.49%
ROIC(5y)0.96%
ROICexc(3y)0.52%
ROICexc(5y)1.37%
ROICexgc(3y)3.66%
ROICexgc(5y)11.33%
ROCE(3y)0.62%
ROCE(5y)1.22%
ROICexcg growth 3Y-57.01%
ROICexcg growth 5Y-47.53%
ROICexc growth 3Y-45.68%
ROICexc growth 5Y-46.2%
OM growth 3Y-50.43%
OM growth 5Y-42.03%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.74%
GM growth 5Y0.85%
F-Score5
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.55 | ||
| Debt/EBITDA | 2.29 | ||
| Cap/Depr | 17.26% | ||
| Cap/Sales | 1.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 113.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 1.14 |
F-Score5
WACC9.53%
ROIC/WACC0.53
Cap/Depr(3y)13.07%
Cap/Depr(5y)12.41%
Cap/Sales(3y)1.89%
Cap/Sales(5y)1.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2888.24%
EPS 3Y86.46%
EPS 5Y2.64%
EPS Q2Q%-166.15%
EPS Next Y-68.8%
EPS Next 2Y7.25%
EPS Next 3Y-15.43%
EPS Next 5YN/A
Revenue 1Y (TTM)11.68%
Revenue growth 3Y17.31%
Revenue growth 5Y15.96%
Sales Q2Q%17.52%
Revenue Next Year13.02%
Revenue Next 2Y8.8%
Revenue Next 3Y7.73%
Revenue Next 5YN/A
EBIT growth 1Y6885.02%
EBIT growth 3Y-41.85%
EBIT growth 5Y-32.77%
EBIT Next Year29700%
EBIT Next 3Y593.13%
EBIT Next 5YN/A
FCF growth 1Y110.16%
FCF growth 3Y5.82%
FCF growth 5Y7.25%
OCF growth 1Y89.93%
OCF growth 3Y5.99%
OCF growth 5Y7.63%