We assign a fundamental rating of 4 out of 10 to MBC. MBC was compared to 42 industry peers in the Building Products industry. There are concerns on the financial health of MBC while its profitability can be described as average. MBC is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

MBC had positive earnings in the past year.
In the past year MBC had a positive cash flow from operations.
MBC had positive earnings in each of the past 5 years.
In the past 5 years MBC always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of 2.75%, MBC is doing worse than 66.67% of the companies in the same industry.
With a Return On Equity value of 5.98%, MBC is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
MBC has a worse Return On Invested Capital (6.58%) than 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MBC is below the industry average of 12.68%.

		Industry Rank	Sector Rank
ROA	2.75%
ROE	5.98%
ROIC	6.58%

ROA(3y)6.03%

ROA(5y)5.91%

ROE(3y)13.46%

ROE(5y)10.88%

ROIC(3y)9.96%

ROIC(5y)8.67%

1.3 Margins

MBC has a worse Profit Margin (3.00%) than 64.29% of its industry peers.
MBC's Profit Margin has improved in the last couple of years.
MBC has a Operating Margin of 8.31%. This is in the lower half of the industry: MBC underperforms 64.29% of its industry peers.
MBC's Operating Margin has improved in the last couple of years.
MBC has a Gross Margin (31.31%) which is in line with its industry peers.
MBC's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	8.31%
PM (TTM)	3%
GM	31.31%

OM growth 3Y7.36%

OM growth 5Y4.7%

PM growth 3Y-10%

PM growth 5Y2.03%

GM growth 3Y5.76%

GM growth 5Y2.32%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

MBC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for MBC has been increased compared to 1 year ago.
MBC has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 2.56 indicates that MBC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.56, MBC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
MBC has a debt to FCF ratio of 7.13. This is a slightly negative value and a sign of low solvency as MBC would need 7.13 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.13, MBC is doing worse than 61.90% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that MBC is somewhat dependend on debt financing.
MBC has a Debt to Equity ratio of 0.69. This is comparable to the rest of the industry: MBC outperforms 40.48% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.69
Debt/FCF	7.13
Altman-Z	2.56

ROIC/WACC0.77

WACC8.58%

2.3 Liquidity

MBC has a Current Ratio of 1.87. This is a normal value and indicates that MBC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.87, MBC is in line with its industry, outperforming 42.86% of the companies in the same industry.
A Quick Ratio of 1.13 indicates that MBC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.13, MBC perfoms like the industry average, outperforming 40.48% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.87
Quick Ratio	1.13

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

MBC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.32%.
Measured over the past 5 years, MBC shows a small growth in Earnings Per Share. The EPS has been growing by 4.01% on average per year.
The Revenue has been growing slightly by 1.77% in the past year.
The Revenue has been growing slightly by 2.48% on average over the past years.

EPS 1Y (TTM)-24.32%

EPS 3Y-12.38%

EPS 5Y4.01%

EPS Q2Q%-17.5%

Revenue 1Y (TTM)1.77%

Revenue growth 3Y-1.84%

Revenue growth 5Y2.48%

Sales Q2Q%-2.67%

3.2 Future

The Earnings Per Share is expected to grow by 9.40% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.63% on average over the next years.

EPS Next Y-21.44%

EPS Next 2Y-13.07%

EPS Next 3Y9.4%

EPS Next 5YN/A

Revenue Next Year-2.4%

Revenue Next 2Y-1.28%

Revenue Next 3Y2.63%

Revenue Next 5YN/A

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

The Price/Earnings ratio is 11.67, which indicates a very decent valuation of MBC.
Based on the Price/Earnings ratio, MBC is valued cheaply inside the industry as 88.10% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.32. MBC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 12.81, the valuation of MBC can be described as correct.
Based on the Price/Forward Earnings ratio, MBC is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
MBC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.

		Industry Rank	Sector Rank
PE	11.67
Fwd PE	12.81

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MBC is valued cheaper than 85.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MBC is valued cheaper than 90.48% of the companies in the same industry.