82.66 USD
-3.77 (-4.36%)
82.66 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to MLAB. MLAB was compared to 57 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 negative earnings in the past year.
- In the past year MLAB had a positive cash flow from operations.
- 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 (-0.37%) than 66.67% of its industry peers.
- The Return On Equity of MLAB (-0.88%) is better than 68.42% of its industry peers.
- MLAB has a Return On Invested Capital of 3.11%. This is in the better half of the industry: MLAB outperforms 64.91% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MLAB is significantly below the industry average of 13.75%.
- The 3 year average ROIC (2.10%) for MLAB is below the current ROIC(3.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.37% | ||
| ROE | -0.88% | ||
| ROIC | 3.11% |
ROA(3y)-19.07%
ROA(5y)-11.28%
ROE(3y)-58.62%
ROE(5y)-34.92%
ROIC(3y)2.1%
ROIC(5y)1.72%
1.3 Margins
- MLAB has a Operating Margin of 6.13%. This is in the better half of the industry: MLAB outperforms 61.40% of its industry peers.
- MLAB's Operating Margin has improved in the last couple of years.
- MLAB's Gross Margin of 62.15% is amongst the best of the industry. MLAB outperforms 82.46% of its industry peers.
- In the last couple of years the Gross Margin of MLAB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.13% | ||
| PM (TTM) | N/A | ||
| GM | 62.15% |
OM growth 3Y41.92%
OM growth 5Y1.93%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.16%
GM growth 5Y2.74%
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.
- MLAB has more shares outstanding than it did 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 1.36. This is a bad value and indicates that MLAB is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 1.36, MLAB is not doing good in the industry: 61.40% of the companies in the same industry are doing better.
- MLAB has a debt to FCF ratio of 4.69. This is a neutral value as MLAB would need 4.69 years to pay back of all of its debts.
- MLAB's Debt to FCF ratio of 4.69 is fine compared to the rest of the industry. MLAB outperforms 71.93% of its industry peers.
- MLAB has a Debt/Equity ratio of 0.95. This is a neutral value indicating MLAB is somewhat dependend on debt financing.
- MLAB has a worse Debt to Equity ratio (0.95) than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 4.69 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.29
WACC10.7%
2.3 Liquidity
- A Current Ratio of 2.02 indicates that MLAB has no problem at all paying its short term obligations.
- MLAB's Current ratio of 2.02 is in line compared to the rest of the industry. MLAB outperforms 40.35% of its industry peers.
- MLAB has a Quick Ratio of 1.44. This is a normal value and indicates that MLAB is financially healthy and should not expect problems in meeting its short term obligations.
- MLAB has a worse Quick ratio (1.44) than 61.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
- The earnings per share for MLAB have decreased strongly by -104.68% 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.
- Looking at the last year, MLAB shows a small growth in Revenue. The Revenue has grown by 7.39% in the last year.
- The Revenue has been growing by 15.41% on average over the past years. This is quite good.
EPS 1Y (TTM)-104.68%
EPS 3Y-62.71%
EPS 5Y-39.16%
EPS Q2Q%-43.61%
Revenue 1Y (TTM)7.39%
Revenue growth 3Y9.35%
Revenue growth 5Y15.41%
Sales Q2Q%5.02%
3.2 Future
- The Earnings Per Share is expected to grow by 247.51% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 4.49% on average over the next years.
EPS Next Y2707.43%
EPS Next 2Y380.33%
EPS Next 3Y247.51%
EPS Next 5YN/A
Revenue Next Year3.09%
Revenue Next 2Y4.17%
Revenue Next 3Y4.49%
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.
- 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 reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- MLAB is valuated quite expensively with a Price/Forward Earnings ratio of 51.18.
- The rest of the industry has a similar Price/Forward Earnings ratio as MLAB.
- MLAB is valuated expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 51.18 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MLAB is valued cheaply inside the industry as 85.96% 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 98.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.23 | ||
| EV/EBITDA | 15.85 |
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.
- 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 247.51% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y380.33%
EPS Next 3Y247.51%
5. Dividend
5.1 Amount
- MLAB has a yearly dividend return of 0.73%, which is pretty low.
- MLAB's Dividend Yield is rather good when compared to the industry average which is at 0.09. MLAB pays more dividend than 100.00% of the companies in the same industry.
- With a Dividend Yield of 0.73, MLAB pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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-222.26%
EPS Next 2Y380.33%
EPS Next 3Y247.51%
MESA LABORATORIES INC / MLAB FAQ
Can you provide the ChartMill fundamental rating for MESA LABORATORIES INC?
ChartMill assigns a fundamental rating of 4 / 10 to MLAB.
What is the valuation status of MESA LABORATORIES INC (MLAB) stock?
ChartMill assigns a valuation rating of 5 / 10 to MESA LABORATORIES INC (MLAB). This can be considered as Fairly Valued.
How profitable is MESA LABORATORIES INC (MLAB) stock?
MESA LABORATORIES INC (MLAB) has a profitability rating of 6 / 10.
What is the financial health of MESA LABORATORIES INC (MLAB) stock?
The financial health rating of MESA LABORATORIES INC (MLAB) is 3 / 10.
Can you provide the expected EPS growth for MLAB stock?
The Earnings per Share (EPS) of MESA LABORATORIES INC (MLAB) is expected to grow by 2707.43% in the next year.