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Meritor Inc (MTOR) Stock Fundamental Analysis

NYSE:MTOR - New York Stock Exchange, Inc. - US59001K1007 - Common Stock - Currency: USD

36.5  +0.01 (+0.03%)

After market: 36.51 +0.01 (+0.03%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to MTOR. MTOR was compared to 128 industry peers in the Machinery industry. Both the profitability and financial health of MTOR have multiple concerns. MTOR has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

MTOR had positive earnings in the past year.
MTOR Yearly Net Income VS EBIT VS OCF VS FCFMTOR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 100M 200M 300M 400M 500M

1.2 Ratios

Industry RankSector Rank
ROA 6.62%
ROE 32.4%
ROIC 9.14%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
MTOR Yearly ROA, ROE, ROICMTOR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 0 100 -100 -200

1.3 Margins

Industry RankSector Rank
OM 5.73%
PM (TTM) 5.37%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
MTOR Yearly Profit, Operating, Gross MarginsMTOR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 5 10 15

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2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MTOR is destroying value.
MTOR has less shares outstanding than it did 1 year ago.
MTOR has a better debt/assets ratio than last year.
MTOR Yearly Shares OutstandingMTOR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 20M 40M 60M 80M
MTOR Yearly Total Debt VS Total AssetsMTOR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 500M 1B 1.5B 2B 2.5B

2.2 Solvency

An Altman-Z score of 2.72 indicates that MTOR is not a great score, but indicates only limited risk for bankruptcy at the moment.
MTOR has a Debt/Equity ratio of 1.51. This is a high value indicating a heavy dependency on external financing.
Industry RankSector Rank
Debt/Equity 1.51
Debt/FCF N/A
Altman-Z 2.72
ROIC/WACC0.93
WACC9.78%
MTOR Yearly LT Debt VS Equity VS FCFMTOR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 0 500M -500M 1B

2.3 Liquidity

MTOR has a Current Ratio of 1.40. This is a normal value and indicates that MTOR is financially healthy and should not expect problems in meeting its short term obligations.
MTOR has a Quick Ratio of 1.40. This is a bad value and indicates that MTOR is not financially healthy enough and could expect problems in meeting its short term obligations.
Industry RankSector Rank
Current Ratio 1.4
Quick Ratio 0.79
MTOR Yearly Current Assets VS Current LiabilitesMTOR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 200M 400M 600M 800M 1B

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6

3. Growth

3.1 Past

MTOR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 233.33%, which is quite impressive.
The Earnings Per Share has been growing by 10.35% on average over the past years. This is quite good.
MTOR shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.38%.
MTOR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.68% yearly.
EPS 1Y (TTM)233.33%
EPS 3Y-4.29%
EPS 5Y10.35%
EPS Q2Q%44.12%
Revenue 1Y (TTM)30.38%
Revenue growth 3Y-2.83%
Revenue growth 5Y3.68%
Sales Q2Q%17.4%

3.2 Future

Based on estimates for the next years, MTOR will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.45% on average per year.
Based on estimates for the next years, MTOR will show a small growth in Revenue. The Revenue will grow by 3.45% on average per year.
EPS Next Y36.94%
EPS Next 2Y29.23%
EPS Next 3Y19.9%
EPS Next 5Y16.45%
Revenue Next Year9.16%
Revenue Next 2Y8.33%
Revenue Next 3Y4.68%
Revenue Next 5Y3.45%

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 stable: in the next years the growth will be about the same than in the last years.
MTOR Yearly Revenue VS EstimatesMTOR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B
MTOR Yearly EPS VS EstimatesMTOR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 11.41, which indicates a very decent valuation of MTOR.
Compared to an average S&P500 Price/Earnings ratio of 27.21, MTOR is valued rather cheaply.
MTOR is valuated reasonably with a Price/Forward Earnings ratio of 8.09.
When comparing the Price/Forward Earnings ratio of MTOR to the average of the S&P500 Index (21.70), we can say MTOR is valued rather cheaply.
Industry RankSector Rank
PE 11.41
Fwd PE 8.09
MTOR Price Earnings VS Forward Price EarningsMTOR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.75
MTOR Per share dataMTOR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

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.
MTOR's earnings are expected to grow with 19.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)1.1
EPS Next 2Y29.23%
EPS Next 3Y19.9%

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0

5. Dividend

5.1 Amount

MTOR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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Meritor Inc

NYSE:MTOR (8/2/2022, 8:22:39 PM)

After market: 36.51 +0.01 (+0.03%)

36.5

+0.01 (+0.03%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)08-02 2022-08-02/amc
Earnings (Next)11-15 2022-11-15
Inst Owners0%
Inst Owner Change0%
Ins Owners2.1%
Ins Owner Change0%
Market Cap2.59B
Analysts47.5
Price Target37.23 (2%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 11.41
Fwd PE 8.09
P/S 0.63
P/FCF N/A
P/OCF N/A
P/B 3.81
P/tB N/A
EV/EBITDA 10.75
EPS(TTM)3.2
EY8.77%
EPS(NY)4.51
Fwd EY12.35%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS57.85
BVpS9.58
TBVpSN/A
PEG (NY)0.31
PEG (5Y)1.1
Profitability
Industry RankSector Rank
ROA 6.62%
ROE 32.4%
ROCE N/A
ROIC 9.14%
ROICexc N/A
ROICexgc 11.97%
OM 5.73%
PM (TTM) 5.37%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y0%
ROICexcg growth 5Y0%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover1.23
Health
Industry RankSector Rank
Debt/Equity 1.51
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.4
Quick Ratio 0.79
Altman-Z 2.72
F-Score7
WACC9.78%
ROIC/WACC0.93
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)233.33%
EPS 3Y-4.29%
EPS 5Y10.35%
EPS Q2Q%44.12%
EPS Next Y36.94%
EPS Next 2Y29.23%
EPS Next 3Y19.9%
EPS Next 5Y16.45%
Revenue 1Y (TTM)30.38%
Revenue growth 3Y-2.83%
Revenue growth 5Y3.68%
Sales Q2Q%17.4%
Revenue Next Year9.16%
Revenue Next 2Y8.33%
Revenue Next 3Y4.68%
Revenue Next 5Y3.45%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A