Meritor Inc (MTOR)
US59001K1007 - Common Stock
Overall MTOR gets a fundamental rating of 3 out of 10. We evaluated MTOR against 132 industry peers in the Machinery industry. MTOR has a bad profitability rating. Also its financial health evaluation is rather negative. MTOR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
MTOR had positive earnings in the past year.
In the past 5 years MTOR has always been profitable.
In the past 5 years MTOR always reported a positive cash flow from operatings.
1.2 Ratios
| Industry Rank | Sector 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
1.3 Margins
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MTOR is destroying value.
MTOR has less shares outstanding than it did 1 year ago.
Compared to 1 year ago, MTOR has an improved debt to assets ratio.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.72 |
ROIC/WACC0.93
WACC9.78%
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.
A Quick Ratio of 0.79 indicates that MTOR may have some problems paying its short term obligations.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.79 |
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.
The Revenue has grown by 30.38% in the past year. This is a very strong growth!
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 growth Q2Q44.12%
Revenue 1Y (TTM)30.38%
Revenue growth 3Y-2.83%
Revenue growth 5Y3.68%
Revenue growth Q2Q17.4%
3.2 Future
The Earnings Per Share is expected to grow by 16.45% on average over the next years. This is quite good.
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
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.41, which indicates a very decent valuation of MTOR.
When comparing the Price/Earnings ratio of MTOR to the average of the S&P500 Index (28.53), we can say MTOR is valued rather cheaply.
MTOR is valuated reasonably with a Price/Forward Earnings ratio of 8.09.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.31, MTOR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 8.09 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.75 |
4.3 Compensation for Growth
MTOR's 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%
5. Dividend
5.1 Amount
No dividends for MTOR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Meritor Inc
NYSE:MTOR (8/2/2022, 7:22:39 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 8.09 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.31
PEG (5Y)1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.62% | ||
| ROE | 32.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.73% | ||
| PM (TTM) | 5.37% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)233.33%
EPS 3Y-4.29%
EPS 5Y
EPS growth Q2Q
EPS Next Y36.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)30.38%
Revenue growth 3Y-2.83%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y