MTOR Fundamental Analysis - Meritor Inc

Fundamental Rating

We assign a fundamental rating of 2 out of 10 to MTOR. MTOR was compared to 127 industry peers in the Machinery industry. Both the profitability and financial health of MTOR have multiple concerns. MTOR is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

1.1 Basic Checks

In the past year MTOR was profitable.

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

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MTOR is destroying value.

Compared to 1 year ago, MTOR has less shares outstanding

MTOR has a better debt/assets ratio than last year.

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.

A Debt/Equity ratio of 1.51 is on the high side and indicates that MTOR has dependencies on debt 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

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 233.33% over the past year.

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

MTOR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.45% yearly.

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.

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 11.41, the valuation of MTOR can be described as reasonable.

When comparing the Price/Earnings ratio of MTOR to the average of the S&P500 Index (26.84), we can say MTOR is valued rather cheaply.

The Price/Forward Earnings ratio is 8.09, which indicates a very decent valuation of MTOR.

MTOR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.94.

		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

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

A more expensive valuation may be justified as MTOR's earnings are expected to grow with 19.90% in the coming years.

PEG (NY)0.31

PEG (5Y)1.1

EPS Next 2Y29.23%

EPS Next 3Y19.9%

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5. Dividend

5.1 Amount

MTOR does not give a dividend.

		Industry Rank	Sector 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 Rank	Sector 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 Rank	Sector 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 Rank	Sector 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 Rank	Sector 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

Meritor Inc (MTOR) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

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