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. A decent growth rate in combination with a cheap valuation! Better keep an eye on MBC.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year MBC was profitable.
In the past year MBC had a positive cash flow from operations.
Each year in the past 5 years MBC has been profitable.
Each year in the past 5 years MBC had a positive operating cash flow.

1.2 Ratios

MBC has a worse Return On Assets (2.75%) than 66.67% of its industry peers.
MBC's Return On Equity of 5.98% is on the low side compared to the rest of the industry. MBC is outperformed by 64.29% of its industry peers.
MBC has a worse Return On Invested Capital (6.58%) than 66.67% of its industry peers.
MBC had an Average Return On Invested Capital over the past 3 years of 9.96%. This 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

With a Profit Margin value of 3.00%, MBC is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
MBC's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 8.31%, MBC is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of MBC has grown nicely.
MBC's Gross Margin of 31.31% is in line compared to the rest of the industry. MBC outperforms 52.38% of 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.
Compared to 1 year ago, MBC has more shares outstanding
Compared to 1 year ago, MBC has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.54 indicates that MBC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of MBC (2.54) is worse than 66.67% of its industry peers.
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.
MBC has a worse Debt to FCF ratio (7.13) than 61.90% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that MBC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.69, MBC is in line with its industry, outperforming 40.48% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.69
Debt/FCF	7.13
Altman-Z	2.54

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.
MBC's Current ratio of 1.87 is in line compared to the rest of the industry. MBC outperforms 42.86% of its industry peers.
A Quick Ratio of 1.13 indicates that MBC should not have too much problems paying its short term obligations.
MBC has a Quick ratio of 1.13. This is comparable to the rest of the industry: MBC outperforms 40.48% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.87
Quick Ratio	1.13

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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

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.
Looking at the last year, MBC shows a small growth in Revenue. The Revenue has grown by 1.77% in the last year.
MBC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.48% yearly.

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.
MBC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.63% yearly.

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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 10.82 indicates a reasonable valuation of MBC.
Based on the Price/Earnings ratio, MBC is valued cheaper than 92.86% of the companies in the same industry.
MBC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
The Price/Forward Earnings ratio is 11.88, which indicates a very decent valuation of MBC.
Based on the Price/Forward Earnings ratio, MBC is valued cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MBC to the average of the S&P500 Index (25.98), we can say MBC is valued rather cheaply.

		Industry Rank	Sector Rank
PE	10.82
Fwd PE	11.88

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MBC is valued cheaper than 88.10% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MBC is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.